Jack Straw Hints At Softer UK Line On EU Tax Issues

by Ulrika Lomas, Tax-News.com, Brussels

07 October 2003

An Independent report has suggested that UK Foreign Secretary Jack Straw has adopted a more conciliatory tone regarding Britain's insistence on a national veto within the European Union with regard to taxation.

According to the report, whilst attending the Inter-Governmental Conference in Rome at the weekend, Straw hinted that he would be prepared to accept majority voting on issues concerning cross-border tax fraud. However, later, UK government officials sought to play down any suggestion that tax policy has softened, saying that the government's stance on the issue "remains unchanged".

"We want to make sure that the whole of the relevant article, with the exception of some, possible, details related to cross-border fraud, is covered by unanimity," Straw announced at the EU summit.

However, the President of the European Convention, Valery Giscard d'Estaing, has warned member states that the constitution, which is the basis for the latest summit, will ultimately be doomed if national governments begin to pick away at the elements of the text that they do not like.

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