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Sarkozy Seeks 'Fiscal Convergence' With Germany,
by Ulrika Lomas, Tax-News.com, Brussels
Monday, July 26, 2010
During a recent meeting of the French cabinet, attended by Germany’s Finance
Minister Wolfgang Schäuble, French President Nicolas Sarkozy put forward
the idea of convergence of the French and German tax systems.
The French President proposed that the Court of Auditors in France and its
German equivalent draw up a joint inventory comparing the two countries’
tax and budget systems, with the aim of enabling the governments to take decisions
to move towards a “necessary fiscal convergence”, both in the area
of company taxation and individual taxation.
Underlining the fact that the convergence of the two tax systems was an “essential
element” of economic integration and the deepening of the European internal
market, Sarkozy noted that France and Germany alone represent 49% of euro zone
gross domestic product (GDP), and that their growth is therefore an essential
element for the dynamism of Europe.
Alluding to the fact that the level of the tax burden is similar in France
and Germany, with respectively 42.8% and 39.5% of GDP in 2008, President
Sarkozy acknowledged that these global figures represent vastly different
realities. The figures also hide an even greater discrepancy in the area of
government spending – 55.6% of GDP in France in 2009 compared to 47.6%
in Germany.
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