WRITTEN QUESTION E-2816/00 by Bill Miller (PSE) to the Commission. Local taxation.
Date: 2000-09-05
Institutions: European Parliament, Provisional data
Subjects: application of EU law, competence of the Member States, local tax

C 103 E/222

Official Journal of the European Communities

EN

3.4.2001

Answer given by Mr Liikanen on behalf of the Commission

(11 October 2000)

In its communication (1) concerning the direction of the programme of the structural funds for the period
2000-2006, the Commission attaches great importance to the social economy sector (co-operatives,
mutuals, associations) with respect to employment creation.

One of the guidelines for 2000 (guideline 12) invites Member States to (cid:145)promote measures to exploit fully
the possibilities offered by job creation at local level and in the social economy, especially in new activities
linked to needs not yet satisfied by the market, and examine, with the aim of reducing them, any obstacles
in the way of such measures(cid:146).

In accordance with the principle of partnership, the Commission ensures that the Member States take
account of these agreed orientations in the programming documents for the regions that are eligible under
objectives 1 and 2 during the period 2000-2006.

As far as the European fund for regional development is concerned cooperatives are entitled, as are any
other enterprise irrespective of their legal form, to benefit from co-financing.

The European social fund contributes to the actions undertaken in pursuance of the European employment
strategy and the annual guidelines on employment. Its activities are therefore of particular relevance for the
cooperative sector.

The activities of the above-mentioned funds are managed by the national administrations and are not
analysed by legal form of enterprise (i.e. by implementing instrument). It is therefore not possible to
provide the Honourable Member with accurate statistical
information on the numbers of cooperative
enterprises participating in social and regional funded projects.

The Commission maintains regular links with the representative organisations of the cooperative sectors at
the European level and remains open to their requests, on behalf of their members, for information
regarding European social and regional funds.

(1) OJ C 267, 22.9.1999.

(2001/C 103 E/261)

WRITTEN QUESTION E-2816/00

by Bill Miller (PSE) to the Commission

(5 September 2000)

Subject: Local taxation

Can a Member State or a region of a Member State which levies local taxation apply two different methods
of local taxation?

For example, in the implementation of local taxation on the commercial sector can one or two specific
commercial activities be treated differently from all other commercial activities or do they all have to be
treated equally?

Answer given by Mr Bolkestein on behalf of the Commission

(11 October 2000)

Since there is no Community legislation on this matter, Member States have sole competence for the
introduction of direct local taxes, including those levied on businesses.

However, such legislation must not contain discriminatory measures that
infringe the fundamental
freedoms provided for in the EC Treaty (freedom of establishment, freedom to supply services, free
movement of persons, goods and capital).

3.4.2001

EN

Official Journal of the European Communities

C 103 E/223

Turning to the specific issue of differentiating between commercial activities in the implementation of local
taxes, the Commission would remind the Honourable Member that this falls within the scope of the
provisions of the EC Treaty on State Aid, in so far as it would favour particular businesses or products and
have an effect on trade between the Member States. However, as set out in the Commission notice on the
application of the State aid rules to measures relating to direct business taxation (1), the differential nature
of some measures does not necessarily mean that they must be considered to be state aid. This is the case
with measures whose economic rationale makes them necessary to the smooth functioning and effective-
ness of the tax system. However, in such cases it is up to the Member State to provide such justification.

(1) OJ C 384, 10.12.1998.

(2001/C 103 E/262)

WRITTEN QUESTION P-2818/00

by Marco Cappato (TDI) to the Council

(1 September 2000)

Subject: Council annual report on human rights: action to be taken by the Council

in response to

Parliament(cid:146)s wishes and suggestions

In paragraph 10 of its annual report on respect for human rights in the European Union (1998-1999),
Parliament, referring to the Council(cid:146)s annual report on human rights, (cid:145)regrets the disappointing nature of
the report(cid:146)s content, which is merely a statement of fact(cid:146), whilst in paragraph 11 it (cid:145)sincerely hopes that the
next Council report will contain a country-by-country detailed analysis of developments in the human
rights situation in the EU and proposes that monitoring systems and strategies be introduced in the future
to improve respect for such rights pursuant to Articles 6 and 7 of the TEU(cid:146). In paragraph 92 it (cid:145)considers
that the role of the Council(cid:146)s annual report on human rights should be specified and should hold a
European analysis of human rights developments, including rights for national minorities, in the various
Member States and a definition of strategies to enable national and European policies in this field to evolve
with a view to improving their coherence(cid:146).

Is the Council intending to act upon the wishes expressed and the suggestions put forward by Parliament
and, if so, in what way? Does the Council not consider that an interinstitutional procedure could usefully
be launched in order to involve all the institutions in a single EU annual report on respect for human
rights and fundamental freedoms in the EU?

Reply

(10 November 2000)

The Council intends to adopt its second report on human rights (1999-2000) in October. The report

1.
will then be forwarded, as was the first report, to the European Parliament.

2.
In preparing the second report, the Council took account of the Parliament(cid:146)s views and those of
other bodies active in the field of human rights. While the content of the report remains centred primarily
on the European Union(cid:146)s action beyond its borders and its role on the international scene, a substantial
part of this second report will be devoted to human rights within the European Union, in accordance with
the wishes expressed at the European Union(cid:146)s first Forum for human rights meeting in Brussels on
30 November and 1 December 1999, in which the European Parliament took an active part. This part will
expand on the action undertaken by the Fifteen in a number of priority areas (racism, security and justice,
social exclusion, rights of the child, women(cid:146)s rights). In addition, the report(cid:146)s annexes will contain a list of
reports submitted by Member States to human rights treaty bodies and of visits by representatives of
human rights mechanisms in the Member States.