Brussels, 07/02/2001 (Agence Europe) - The Commissioner for Taxation, Frits Bolkestein, submitted this Wednesday to the College of Commissioners a note in which there are a series of paths for strengthening to coordination of fiscal policies (see EUROPE of 24 January, p.9). Mr Bolkestein is attempting to draw lessons from the failure of the Nice Summit in terms of taxation, which was unable to achieve a simplification of the decisions taken in this field and to exit the dead-end caused by the maintaining of unanimity. This document was the object of an initial policy debate and should be followed by a Communication on taxation, expected for May or June. Among the suggestions allowing for agreement, one finds: code of conduct, a multilateral monitoring system and the publication of Communications, recommendation, guidelines or interpretative notes. According to a source close to the Commission, the document "raises for the least part mitigated reactions within the College." Two trends confront each other that prefigure the debate between the Member States, with on the one side, the partisans of tax harmonisation and, on the other, those who prefer a progressive convergence achieved under the pressure of tax competition. Fritz Bolkenstein appears to be one favouring the second. In his note, he feels that "the complete harmonisation of the Member States tax systems (…) is neither necessary nor desirable," and welcomes the intensification of cooperation between Member States, notably to ensure the fight against unfair tax competition. During the discussion, Commissioner Pascal Lamy, in favour of tax harmonisation, had wanted to know "what Commissioner Busquin means by tax competition that is not damaging."
Questioned on this issue, during his press conference (see other article), President Prodi indicated that Commissioner Bolkestein had presented on Wednesday to the College "his initial thought", and that next June the Commission would have a "discussion on a text", "while respecting the limits that have been set by the Nice Summit", which confirmed the unanimity rule in fiscal matters. The Commission, Mr Prodi underlined, had made "extremely modest" and technically possible proposals to the IGC on taxation, "on quasi unanimous request from businessmen". Also adding: I said it today in Commission, there is no desire here to intervene in the sovereign sphere of the Member States. If a country wants higher income tax and free hospitals, or if it wants the contrary, "the Commission has nothing to say," he asserted.