WRITTEN QUESTION E-1638/02 by Bart Staes (Verts/ALE) to the Commission. Position of Commissioner Busquin on tax competition in the European single market.
Date: 2002-06-10
Institutions: European Parliament, Provisional data
Subjects: Council of the European Union, European Commissioner, fiscal policy, operation of the Institutions, public statement, qualified majority, single market, tax harmonisation

6.2.2004

EN

Official Journal of the European Union

C 33 E/3

Answer given by Mr Patten on behalf of the Commission

(28 May 2002)

After the events of 1999, the Commission established an office of the Humanitarian Aid Office (ECHO) in
Dili to help to manage the ongoing emergency aid actions in the territory. Since February 2001, a
Community Correspondent Technical Assistance office has been established in Dili which, for reasons of
economy and efficiency, is sharing office facilities with ECHO. The Commission plans to continue this
Community Correspondent Technical Assistance office in Dili until the end of 2004. It is funded from
budget line B7 304A to provide project management and local technical assistance support to the ongoing
Community rehabilitation, reconstruction and development programmes and actions in East Timor.

The Commission’s Head of Delegation based in Jakarta is presently in process of being formally accredited
to the United Nations Transitional Administration for East Timor and is proposed to be accredited to East
Timor after its independence on 20 May 2002. Given that the Community Correspondent Technical
Assistance Office funding provides for a local presence until the end of 2004, and that the Commission’s
budget for Delegations in third countries is committed to the maximum, the Commission does not
currently have any plans to open a Community Delegation in Dili, since to do so would require closing on
scaling back another delegation.

(2004/C 33 E/003)

WRITTEN QUESTION E-1638/02

by Bart Staes (Verts/ALE) to the Commission

(10 June 2002)

Subject: Position of Commissioner Busquin on tax competition in the European single market

On 18 May 2002 in the newspaper De Morgen the European Commissioner for research policy, Philippe
Busquin, was reported as stating that he is in fundamental disagreement with his colleague Commissioner
Bolkestein. He blames Bolkestein for encouraging the Member States to compete against one another in
the area of taxation and is quoted as saying ‘Should we drive up fiscal competition within the European
internal market? Mr Bolkestein (internal market) is in favour of this. I must make it quite clear that I am
against it. It is time that we had a serious discussion of the issue.’

In the meantime has Commissioner Busquin officially informed his fellow commissioners of his
dissatisfaction with Mr Bolkestein’s policy and has he now urged his colleagues in the Commission to
debate the issue?

If not, when will Commissioner Busquin officially notify the Commission of his views?

If so, how did the Commission react to the proposal for a thorough debate?

Can Commissioner Busquin once again explain why he disagrees with Mr Bolkestein’s approach. If not,
how are we to interpret the interview published in De Morgen?

Answer given by Mr Bolkestein on behalf of the Commission

(18 July 2002)

The Commission’s position on Union taxation policy is set out in its Communication ‘Tax policy in the
European Union (cid:1) priorities for the years ahead’ (1). This Communication is very comprehensive and
identifies several levels of actions and priorities for the coming years. It is the result of a debate within the
Commission on the role of fiscal policy and fiscal measures.

C 33 E/4

Official Journal of the European Union

EN

6.2.2004

Tax competition is addressed in this Communication and more particularly in Section 2.3 which states that
the EU tax policy ‘must, as a priority, serve the interests of citizens and business wishing to avail
themselves of the four freedoms of the Internal Market (the free movement of persons, goods and capital,
and the freedom to provide services). It must, therefore, focus on the removal of tax obstacles to the
exercise of those four freedoms. Moreover, to the extent that tax systems are used as a tool for allocation,
redistribution, and stabilisation objectives, the tax consequences must be clear to the intended economic
agents. For both these reasons, tax systems must be made simpler and more transparent. In this context it
is important to recognise that, while harmful tax competition must be addressed both at EU level and at
the broader international level, notably within the OECD, and the State aid provisions of the Treaty must
be respected, some degree of tax competition within the EU may be inevitable and may contribute to
lower tax pressure.’

In this Communication it is also recognised that tax policy cannot be designed in isolation but should be
coherent and underpinning other Union policy objectives and in particular support the modernisation of
the so-called European social model. In this context, it is also up to the Council of Ministers to decide
which actions to take up as a priority. And, as the Communication also makes clear,
it remains the
Commission’s view that a move to qualified majority voting at least for some tax issues is indispensable.

Accordingly, the statements made on the subject of tax competition in the article in De Morgen are fully in
line with the Communication adopted by the Commission. But
this
Communication contains several levels of actions for the short, medium and long term.

it needs to be realised that

(1) COM(2001) 260.

(2004/C 33 E/004)

WRITTEN QUESTION E-1954/02

by Glyn Ford (PSE) to the Commission

(3 July 2002)

Subject: European Year of Remembrance and Reconciliation

What consideration is the Commission giving to whether it would be desirable to designate 2005 as the
European Year of Remembrance and Reconciliation in order to positively mark the 60th anniversary of the
end of the Second World War?

Answer given by Mr Prodi on behalf of the Commission

(7 October 2002)

The Commission has given careful consideration to the suggestion that 2005 should be designated as the
‘European Year of Remembrance and Reconciliation’.

It is clearly desirable that the 60th anniversary of the end of the Second World War (cid:1) the end of war
within the boundaries of our Union (cid:1) should be marked in a positive way. The Commission believes,
however, that the process of enlargement including the welcoming of new Members of the Parliament and
new Members of the Commission is its most tangible demonstration of reconciliation. It is, of course,
precisely because it remembers the First and Second World Wars and the sacrifices made by its fellow
Europeans that the Commission is determined to ensure the peace, security and stability of an enlarged
Union.

Whilst the Commission is not proposing to designate 2005 as the European Year of Remembrance and
it is considering the possibility of focusing
Reconciliation as suggested by the Honourable Member,
activities on 9 May 2005 on these specific themes. This would be an effective means of informing citizens
of the very essence of the Union, of the values on which the Union was founded and which continue to
guide the aims and objectives of the enlarged Union. The celebration of the peaceful enlarged Union of
2005 would be fitting act of remembrance.