Opinion of the Economic and Social Committee on the 'Proposal for a European Parliament and Council Decision establishing a programme of Community action to reinforce the functioning of the indirect taxation systems of the internal market (Fiscalis programme)` () (98/C 19/14)

On 6 June 1997 the Council decided to consult the Economic and Social Committee, under Article 100a of the Treaty establishing the European Community, on the above-mentioned proposal.

The Section for Economic, Financial and Monetary Questions, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 14 October 1997. The rapporteur working without a study group was Mr Geuenich.

At its 349th plenary session of 29 and 30 October 1997 (meeting of 29 October) the Economic and Social Committee adopted the following opinion by 108 votes to one, with seven abstentions.

1. Introduction

1.1. The aim of the proposal is to improve the operation of the VAT system in the Member States. Community support, particularly for the training of officials responsible for indirect taxes, is intended to contribute to this. The planned introduction of a new VAT system (but also improved application of the existing system, in place since 1993), the planned enlargement of the Community and the repeated calls for improved administrative cooperation between the Member States in the framework of subsidiarity justify this Community initiative.

1.2. The programme will cost ECU 45 million over five years. In order to achieve the planned continuing improvement of administrative procedures, improvements are to be brought about in national officials' understanding of tax and Community law, and effective and extensive cooperation among the Member States and between them and the Commission are to be secured (Article 3).

1.3. The Commission proposal makes provision for Community spending on:

- communication and information exchange systems, manuals and guides;

- exchanges, seminars and multilateral control exercises;

- common training initiative.

Applicants for Community membership may take part in the programme in the framework of a partnership.

2. The Committee's comments

2.1. The Economic and Social Committee would first refer to its recent opinions on Taxation in the European Union - report on the development of tax systems () and A common system of VAT - a programme for the single market ().

2.2. The Committee feels that the timing of the introduction of the Fiscalis programme is good, particularly when one considers that the applicants for Community membership will need extensive help if their administrations are to be able to cooperate with those of the other Member States and with the Commission. Moreover, the planned cooperation between national officials, and particularly the longer-term exchanges between national administrations, are greatly to be welcomed. In this way mutual trust will be established and the effectiveness of cooperation enhanced, particularly as national administrations will increasingly be called on to work together on the fulfilment of Community objectives. This programme will help bring about a situation where not only will the success of one Member State's administration be dependent on that of another Member State's administration, but it will actually constitute that success.

2.3. The Committee wonders whether the programme's funding is sufficient for its objectives to be effectively implemented. The training and exchange of civil servants within the Community is a necessary and excellent investment in the further integration of Europe. The Commission ought therefore at the appropriate time to look into the possibility of extending the programme to other areas of tax policy. The programme can provide a sound basis for the implementation of the Commission's tax policy strategies in the future, as the cooperation of national tax authorities is particularly important here.

Brussels, 29 October 1997.

The President of the Economic and Social Committee

Tom JENKINS

() OJ C 177, 11. 6. 1997, p. 8.

() OJ C 296, 29. 9. 1997, p. 37.

() OJ C 296, 29. 9. 1997, p. 51.