Brussels, 02/04/2012 (Agence Europe) - In a report on the European Commission's draft legislation on the EU's own resources (see related article), issued on the basis of a report by Gérard Dantin (France, Workers' Group), the European Economic and Social Committee (EESC) called on 29 March by 165 to 21 with 11 abstentions in favour of the introduction on 1 January 2014 of a new system of VAT and a financial transaction tax (FTT) to raise 54.1% of the EU's income by 2020.
VAT. The EESC approves of the idea of creating a new VAT own resource to replace the current “false” VAT own resource which it says is out-of-date and cumbersome, being over-complex and hampered by red tape in its attempts to apply in a harmonised manner. It is estimated that this new VAT system could raise 18.1% of the EU's budget, or €29.4 billion by 2020.
FTT. The EESC wants an FTT to be introduced at global level or, if that is not possible, by the EU to set an example ahead of the levying of a global FTT. It agrees with the European Commission that an FTT could increase stability and efficiency on the financial markets by acting as a brake on volatility. It is estimated that such a tax could raise €57 billion a year, €54.2bn of which could feed straight in to the EU's budget (a third of the total) and hence reduce the amount member states have to pay. This would give national governments room for manoeuvre and help them clean up their finances. (FG/transl.fl)