Brussels, 26/11/2010 (Agence Europe) - On the fringes of the plenary session of the European Parliament in Strasbourg on Wednesday 24 November 2010, four political parties (EPP, S&D, ALDE and the Greens/EFA) urged the European Commission, Eurogroup and eurozone countries to adjust their minimum company tax rates to 25% “in the spirit of solidarity”. The Commission is asked to make progress in introducing a consolidated European tax basis for company taxation which, MEPs explain, is critical for ensuring good regulation and fair competition. The four parties' statement criticises the line taken by the Irish government that has forced taxpayers and European citizens to take a serious risk to stabilise a financial system that has taken advantage of exceptionally low company tax rates in Ireland, equivalent to 12.5%.
Commenting on this initiative, which is the first time a broad political alliance has formed around a demand for a specific common tax rate, Sven Giegold, co-signatory of the statement on behalf of the Greens/EFA, said that the introduction of a minimum company tax rate was the only way to restrict tax competition and its damaging impact. He said that differences in company taxation in the EU and the eurozone enabled multinationals to claw back around €100 billion in tax. On the aid programme for Ireland, Giegold said that it was unacceptable for aid to be used to rebuild an economy based on fiscal dumping. (F.G. trans fl)