WRITTEN QUESTION E-1656/01 by Raimon Obiols i Germà (PSE) to the Council. Harmful tax competition.
Date: 2001-06-12
Institutions: European Parliament, Provisional data
Subjects: corporation tax, fiscal policy, money laundering, restriction on competition, tax avoidance, tax on income, tax system

4.4.2002

EN

Official Journal of the European Communities

C 81 E/47

This Directive once finally adopted by the Council and the Parliament and implemented in the Member
States will afford to employees in companies of at least 50 workers (even if they are subsidiaries of a
multinational group) a number of basic rights: the right to information about recent and upcoming
developments in company activity, about the company(cid:146)s economic and financial situation, the right to be
informed and consulted on employment issues and on decisions likely to lead to substantial changes in
work organisation as well as the right to know how the company proposes to handle those changes.

Moreover, the Commission adopted on 18 July 2001 a Green Paper on corporate social responsibility
underlining that restructuring in a socially responsible manner means to balance the interests and concerns
of all the stakeholders who are affected by the changes and decisions.

In its Social Policy Agenda (5), the Commission proposed the creation of an observatory on change to be
developed in the Dublin Foundation. The proposal was endorsed by the Stockholm European Council
stating that such an observatory (European Monitoring Centre on Change (EMCC)) should be set up as
soon as possible. The first meeting of the Steering Committee of the EMCC took place on 6 June 2001 and
there will be a launch conference on 23 October 2001.

In conclusion, Europe must face industrial restructuring (cid:129) which can contribute to increased competitive-
ness and economic growth (cid:129) and its social consequences by combining innovation with social cohesion
and improving its capacity to manage change. The Commission takes a comprehensive approach as
outlined above through improving our capacity to anticipate and manage change through the Dublin
Observatory; by creating legal mechanisms to ensure adequate protection of workers in situations of
industrial restructuring; and by developing corporate social responsibility.

(1) OJ L 225, 12.8.1998.
(2) OJ L 61, 5.3.1977.
(3) OJ L 201, 17.7.1998.
(4) COM(98) 612 final.
(5) COM(2000) 379 final.

(2002/C 81 E/058)

WRITTEN QUESTION E-1656/01

by Raimon Obiols i Germ(cid:224) (PSE) to the Council

(12 June 2001)

Subject: Harmful tax competition

The OECD has been working for some years now on the preparation of an international code to combat
harmful tax competition, in a climate of growing consensus on the need to abolish tax havens, large-scale
tax avoidance and money laundering. In this connection, in June 2000 a body linked to the OECD, the
International Financial Action Group, called on over thirty countries to clarify their financial systems and
published a list of fifteen especially (cid:145)uncooperative(cid:146) countries. This initiative was supported by the US
Administration.

In May 2001 the new Treasury Secretary of the Bush Administration declared that this stance on tax
havens was not
in line with the new US Administration(cid:146)s (cid:145)tax and economic priorities(cid:146), adding
unequivocally that (cid:145)the United States does not support efforts to dictate to any country what its own tax
rates or tax system should be, and will not participate in any initiative to harmonise world tax systems(cid:146).

These declarations have, obviously, given rise to concern in large parts of the international community.
There is widespread indignation existing at the fact that organised crime can, as things stand, finance itself
unpunished at international level, coupled with anxiety that the new US Administration is, as it seems,
rejecting the idea of cooperation in any initiative for global governance.

C 81 E/48

Official Journal of the European Communities

EN

4.4.2002

Given the above:

1. What action does the Council intend to take to ensure that the EU achieves positive results in its

campaign against tax havens and money laundering?

2. Does the Council intend to make this a priority subject for the transatlantic agenda?

Reply

(6 December 2001)

The Council would first remind the Honourable Member that the Extraordinary European Council of
21 September 2001, taking as its premise the fact that a decisive aspect of the fight against terrorism is
combating its funding and that energetic international action is required to ensure that the fight is fully
effective, called upon the Ecofin and Justice and Home Affairs Councils (cid:145)to take the necessary measures to
combat any form of financing for terrorist activities, in particular by adopting in the weeks to come the
extension of the Directive on money laundering and the framework Decision on freezing assets(cid:146). On
17 October 2000, meeting in its joint Economic and Financial Affairs/Justice and Home Affairs
configuration, the Council reiterated the invitation of the Tampere European Council to the Member
States to implement in full and also in their dependent territories the provisions of the money-laundering
Directive, the 1990 Strasbourg Convention and the recommendations of the FATF on money laundering.

Furthermore, under the Code of Conduct for business taxation intended to eliminate harmful tax measures,
the Member States have pledged to promote the adoption of the principles of the Code in third countries
and territories to which the EC Treaty does not apply. In particular, those Member States which have
associated or dependent territories, or responsibilities or fiscal prerogatives in other territories, have
undertaken within the framework of their own constitutional provisions to ensure the application of the
principles of the Code in such territories.

Lastly, as part of discussions on the proposal for a Directive on taxation of the savings income of non-
residents and in conformity with the conclusions of the Feira European Council, the Presidency and the
Commission have begun talks with the United States and the leading third countries (Switzerland,
Liechtenstein, Monaco, Andorra, San Mar(cid:237)no) to encourage the adoption of equivalent measures in those
countries; at the same time, the Member States concerned have begun discussions with those of their
dependent or associated territories referred to in the Conclusions (the Channel Islands, the Isle of Man and
the Caribbean dependent or associated territories) to ensure that those territories adopt measures identical
to those which will apply within the Community.

The Council would also remind the Honourable Member of the Member States(cid:146) commitment in the fight
against harmful tax competition within the OECD.

(2002/C 81 E/059)

WRITTEN QUESTION P-1662/01

by JosØ Ribeiro e Castro (UEN) to the Council

(1 June 2001)

Subject: Insecurity in South Africa (cid:129) murder attempts aimed at the resident Portuguese community

The way in which the apartheid system in South Africa was brought to an end, the entire transition
process and the effective functioning of democratic institutions over the last few years have received
widespread international recognition, accompanied by the championing of Nelson Mandela, together with
admiration for, and appreciation of, his example. No attempt will be made to challenge or undermine this
fact.

However, in more recent years a wave of violent crime (apparently linked to serious social problems) has
been seriously disrupting South African society and has been aimed in particular at members of the
country(cid:146)s Portuguese community, who are mainly involved in running small businesses.