Brussels, 19/09/2013 (Agence Europe) - Tax evasion by EU companies and other transnational companies cost developing countries US$100 billion annually in tax revenue, according to a new report published on Wednesday 18 September by Concord, the European confederation of relief and development NGOs. Finding this gives cause for alarm, Concord slams the EU for failure to comply with the provisions of the Lisbon Treaty regarding coherence of policies to the service of development.
The report, “Spotlight on EU Policy Coherence: the real life impact of EU policies on the poor”, analyses the way in which some EU policies for development funding, food security, natural resources and climate change have a negative impact on the poor countries.
It reveals that, for the year 2010 alone, at least $859 was lost from developing countries through illegal financial flows, i.e. three times the amount spent by the EU for development aid in 2012.
“Europe cannot continue to give aid with one hand and take away with the other and tax policy is a classic example of where it's doing this”, commented Laust Lest Gregersen, who chairs the Concord working group on policy coherence for development.
The report was published deliberately at the time when the president of the European Commission, José Manuel Barroso, called on the EU to act against tax evasion and tax fraud at a global level. It is accessible online: http://www.concordeurope.org/coherent-policies . (AN/transl.jl)