Mr President, Commissioner, ladies and gentlemen, I would like to start by giving the apologies of our rapporteur, Mr García-Margallo y Marfil, who has, at short notice, an important appointment in his home region and has therefore had to leave Strasbourg for a few hours. He has asked me to present the report on his behalf and on behalf of the committee. The Fiscalis programme has demonstrated its effectiveness as an instrument for the promotion of mutual understanding between the European Union's tax officials and it is therefore the committee's view, and that expressed in the Commission proposal, that it should be continued. We have, however, tabled seven supplementary amendments. The committee gives its unreserved support to the Commission's proposal that the programme be proceeded with for a further five years. We consider this a matter of urgency in view of the difficulties confronting the European Union in its attempts at preventing tax discrimination and tax fraud in the internal market, as mutual understanding and greater cooperation between the various tax authorities is of vital importance not least because of the difference in competences between internal market legislation and tax law. What are this programme's objectives? Firstly, the efficient operation of the internal market, which is substantially impaired by tax evasion, which damages legitimate business, has a detrimental effect on employment and undermines trust in the Community's tax systems. That requires effective monitoring and measures to combat fraud. We need a network of tax administrations working together as if there were only one European tax administration, and this programme also contributes towards achieving the Lisbon objectives. We also welcome the innovations in comparison with the old programme, which was a successful one, in the shape of the Commission proposals, chiefly for the increase in operational expenditure from EUR 40 million to EUR 56 million. Secondly, the programme's scope, which formerly covered the treatment of indirect taxes, has been extended to officials dealing with direct taxation. We also welcome its clearer alignment and extension through the programme's objectives being directly linked with those of other Community policies in the field of taxation. Let me also say that we think it right for the programme to be open to candidate countries, as that already facilitates participation in seminars and exchanges and as administrative cooperation is very much of the essence in preparing the accession process and to make adjustments to regulations as and when necessary. The Committee on Economic and Monetary Affairs' amendments relate mainly to the following areas. Firstly, we hold fast to the view that finance after 2006 will have to be agreed to by the Budgetary authority; secondly, that the EU is in urgent need of a VAT system based on the principle of taxation in the country of origin, and that the direct taxation field needs increased awareness of Community policy in this area as well as of other Community policies and general principles of Community law affecting the taxation of individuals and of enterprises. You will find, in addition to the Committee on Economic and Monetary Affairs' seven amendments, an amendment by the Liberals and another by the accompanying the reports from the Commission and the Committee on Economic and Monetary Affairs and serving as bases for discussion. What is crucial is that we include the Committee on Economic and Monetary Affairs' amendments in the Commission's programme, for that is the way we have taken, and it is the right one.

Political group: PPE-DE