WRITTEN QUESTION E-0969/97 by Marjo Matikainen-Kallström (PPE) to the Commission (13 March 1997)

Subject: Voluntary work

At the end of 1996 the Commission submitted to the Council a proposal for a voluntary youth work programme. This is a major youth policy initiative to which, in 1998-1999, it was intended to allocate over ECU 60 million from the budget; in addition, matching funds were to be obtained at national level.

The Commission hurried the programme through even though it was known that the proposal had several problem areas, particularly in the fields of social security and taxation. In Finnish labour law, for example, the concept of voluntary work does not exist. In practice this means that in Finland a young person will pay more in taxes than he receives every month in compensation for the voluntary work he does.

This unsatisfactory state of affairs leads to a chaotic degree of unequal treatment for voluntary workers in the different Member States, thus imperilling the whole project. How does the Commission intend to ensure that young people doing voluntary work under the programme in different Member States are treated equally and that the programme's funds are targeted in particular at those young people who are in danger of exclusion because they are in a worse economic or social situation than others?

Answer given by Mrs Cresson on behalf of the Commission (16 April 1997)

As the Honourable Member points out, problems exist in Member States' legislation on taxation and social security of volunteers. The Commission is aware of these problems and has highlighted them in its working document 'Towards a European voluntary service for young people' ((SEC(95) 2268. )) and in the green paper 'Education - training - research: obstacles to transnational mobility' ((COM(96) 462. )). Following the launch of the pilot action European voluntary service for young people, the Commission held a series of bilateral meetings with Member States to get a clear picture of the current legislation and to see which administrative measures could help young volunteers.

Member States are responsible for the legislation on taxation and social security, and the Council has approved conclusions recognising the need to act at national level to facilitate the granting of proper social protection to volunteers ((OJ C 348, 9.12.1994. )). For example in Finland the different options to adapt legislation and administrative practices to ease the sending and receiving of volunteers are currently under discussion.

The Commission communication and proposal for a decision of the Parliament and the Council to establish the multiannual programme of European voluntary service for young people contain a suggested Council resolution which expressly deals with these issues ((COM(96) 610 final. )). The draft resolution contains the following commitment on taxation:

'The Member States shall endeavour to take all the steps necessary to ensure that European voluntary service activities for young people are not assimilated with paid work or employment and therefore that such activities are not subject to mandatory taxation and social security schemes.'

The Commission stresses the need to treat all young people equally, including those participating in the programme European voluntary service for young people. Limiting the participants to disadvantaged young people would only emphasize their status as belonging to the disadvantaged. However, both the pilot programme and the Commission proposal for a multiannual programme provide additional financing to help the disadvantaged young people to participate.