UK Treasury Rejects Euro Tax Calls

by Jason Gorringe, Tax-News.com, London

03 January 2002

Speaking on Wednesday, a spokesman for the UK Treasury said that the Department rejected the calls of French Finance Minister, Laurent Fabius, for a Europe-wide tax following the introduction of the euro, commenting that: 'We have always made it clear that taxes are a matter for individual countries.'

In an article published in Le Monde last week, Mr Fabius echoed the sentiments of German Finance Minister, Hans Eichel, who had previously called for tax raising powers to be transferred to Brussels. However, the French politician went substantially further than his German counterpart- who had initially suggested an EU-wide tax only to fund Brussels' own budget- by calling for a 'budget federation' to run parallel with the common monetary policy.

'A real budget federation would constitute a lever for growth and employment as well as a weapon in favour of economic innovation,' he argued. 'The idea of pooling certain fiscal instruments has been put forward. I am in favour of this...This is a logical follow-up to the euro.'

Recommended