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Europe Daily Bulletin No. 8640
THE DAY IN POLITICS / (eu) eu/epp

EPP election programme advocates strengthening Stability Pact, lowering taxation and increasing working time

Brussels, 06/02/2004 (Agence Europe) - During its congress in Brussels on 5 February, the European People's Party (EPP) adopted its manifesto for the June elections, and a "working programme" for the legislative period 2004-2009. Presenting itself as the "party of the common good", the EPP bases its doctrine around four beliefs: 1) the dignity of the human being 2) support for the family, 3) social market economy, and 4) "the building of a decentralised Federal Europe, international co-operation and multilateralism". It then details its priorities in some fifty pages, divided into six chapters. These priorities "do not come under the Union's competency".

In a huge economic chapter, it recommends "a reduction of the global taxation pressure" and "reasonable co-ordination of indirect taxation". It particularly champions a VAT system defined on the principle of the country of origin and encourages "the establishment of a consolidated VAT base for European companies", whose profits "will come back into the Union's budget". The EPP pleas in favour of a "reduction of fiscal and parafiscal charges on the work factor", common rules for private limited companies, and recommends the improvement of employee share schemes. A controversial paragraph on budgetary equilibrium stipulates that "in order to guarantee the credibility of the euro and achieve our ambitions, there must be more co-ordination of the economic and budgetary policies of the national governments in under the Stability Pact". The CSU and the ÖVP failed to carry the vote to remove this paragraph (123 votes in favour of keeping it, 55 to remove it). Further on ,the EPP pleads for the consolidation of the Pact "by the most appropriate means for giving it legal force". In order to support "competitiveness", the EPP would like to see, amongst other things, EU research spending (currently 1.9% of GDP) "at the same level as its competitors" (2.7% in the United States).

Attacking working time reforms head on, it comments the "as Europe is the continent with the world's shortest working time, greater flexibility should be brought into this field", adding that "it is above all the social partners who should resolve these issues". Under pressure from the ÖVP, the Congress adopted an amendment stating that the "rules of certain European countries on Sunday work will be respected" (202 votes against 115 in favour). The EPP recommends "greater involvement in the employment market for the over-55s, with gradual elimination of early-retirement systems and deciding upon retirement age on a voluntary basis".

Pre-empting the debate on the financial perspectives, the EPP states that it will make sure that it does not base the assessment of national and European cohesion policies "solely on statistics", and that it will vote "sufficient financial means to be able to support structural development in the least-favoured regions".

A chapter on security extends from citizens' rights to asylum and immigration policy. Cautious on the chapter on sharing the costs of border management, the EPP believes that "the possibility for European solidarity on the related links should be considered". In the environmental chapter, the programme pleads in favour of keeping nuclear and for an "environmental responsibility regime, based on the polluter pays principle, with controls, penalties and adequate compensation".

The Congress added to an amendment to its "foreign policy" chapter, which encourage EU initiatives to look into a free trade zone with NAFTA countries, which include the United States. The rapporteur Fernand Herman opposed this amendment, stressing that this weakens the EU's bargaining position at the WTO.

Contents

THE DAY IN POLITICS
GENERAL NEWS
TIMETABLE
ECONOMIC INTERPENETRATION
SUPPLEMENT