Brussels, 27/02/2007 (Agence Europe) - On Tuesday, EU27 finance ministers adopted two texts on the Lisbon strategy, as well as conclusions on reducing administrative charges (EUROPE 9374). There was no difficulty when it came to ratifying the updating of the integrated guidelines for employment and the Broad Economic Policy Guidelines (BEPG) for 2007. The issue of taxation in the “key issues paper” had been dividing member states but was the subject of a lengthy discussion. Although this point was not removed from the text, it was revised and corrected in relation to the initial proposal. The text allows for the possibility of a certain degree of concertation at a European level on tax matters but any reference to direct taxation, even by way of any abstract mention of it in the continuing work at a technical level on the consolidated common corporate tax band (CCCTB), disappeared.
The text, submitted to heads of state and government, acknowledged that “the functioning of the internal market may be improved through cooperation on taxation among member states and where appropriate at the European level, while respecting national competencies”. It failed to mention the importance of “easing frictions” between the different tax systems, and concluded that “the Ecofin Council has been informed on the ongoing work especially in the field of taxation and of action taken to tackle fiscal fraud and harmful tax practices”. The document outlines the main targets in terms of economic and financial policy, as well as policy on energy, the climate, healthy budgets, quality public finance, structural reforms and integration of the financial markets.
With the spring summit still in view, ministers reached an agreement on conclusions for reducing administrative constraints on companies. As some member states commented at the last Ecofin (EUROPE 9355), reducing the burden by 25% by 2012 would apply to charges resulting from Community legislation. The Council is therefore calling on member states to make a commitment to “pass on the advantages of reducing administrative charges at a transposition level, and set their own ambitious nation targets by 2008 by taking into account the different starting points in the situations and traditions on regulation”. (ab)