WRITTEN QUESTION E-1753/02 by Juan Naranjo Escobar (PPE-DE) to the Commission. Action programme on VAT.
Date: 2002-06-19
Institutions: European Parliament, Provisional data
Subjects: VAT, action programme, fiscal policy, single market, tax harmonisation, tax system

17.4.2003

EN

Official Journal of the European Union

C 92 E/91

(2003/C 92 E/093)

WRITTEN QUESTION E-1752/02

by Juan Naranjo Escobar (PPE-DE) to the Commission

(19 June 2002)

Subject: Directive on the taxation of savings

The adoption of the Directive on the taxation of savings is tied in with developments in the negotiations
with third countries aimed at their adopting equivalent measures that will prevent a wholesale flight of
financial assets to the countries concerned (USA, Switzerland, Andorra, Liechtenstein and San Maríno).

Can the Commission indicate what stage these negotiations have reached?

Answer given by Mr Bolkestein on behalf of the Commission

(26 July 2002)

On 16 October 2001 the Ecofin Council gave the Commission a mandate to initiate negotiations with the
United States and five other non-Community countries (Switzerland, Liechtenstein, Monaco, Andorra and
San Maríno) in order to obtain sufficient assurances from them regarding the introduction in their territory
of measures equivalent to those the Union was considering adopting on the subject in the Community.

It was not possible to make a real start on these negotiations until after the Ecofin Council of
13 December 2001 had adopted a draft Directive which included all the provisions on savings tax that had
to be agreed ahead of the negotiations with the non-Community countries. This text includes amendments
to the Commission proposal of 18 July 2001 (1) on which Parliament gave its opinion at the part-session
of 14 March 2002.
the amendments made by the Council on
13 December 2001 reflect those Parliament called for in its opinion.

It should be noted that some of

The Commission has been able to meet representatives of the six countries since the beginning of 2002 to
discuss matters in accordance with the negotiating mandate and the draft Directive agreed by the Ecofin
Council on 13 December last year. On 18 June this year formal negotiations also began with Switzerland.
Discussions with the six countries are continuing and the Commission reports regularly to the Council on
the situation. The Commission is determined to complete the negotiations in time to enable the Council to
adopt the Directive on savings tax as part of a tax package agreement before the end of 2002. The
Commission will not fail to inform Parliament of the outcome of the negotiations it was asked to conduct.

(1) OJ C 270, 25.9.2001.

(2003/C 92 E/094)

WRITTEN QUESTION E-1753/02

by Juan Naranjo Escobar (PPE-DE) to the Commission

(19 June 2002)

Subject: Action programme on VAT

The Commission is working on the reforms needed to eliminate the errors that currently exist in the
‘transitional’ VAT system and fulfil the requirements of the work programme laid down in the Action
Programme on VAT.

Can the Commission indicate what stage it has reached in its work in this area?

Does it consider the objective of establishing a definitive VAT system based on the country-of-origin
principle to have been dispensed with?

C 92 E/92

Official Journal of the European Union

EN

17.4.2003

Answer given by Mr Bolkestein on behalf of the Commission

(16 July 2002)

In June 2000 the Commission, in a Communication to the Council and the Parliament, proposed a new
strategy to improve the operation of the VAT system within the context of the internal market (1). This
new approach is focused not on changing the current transitional system but on its improvement by
simplification, modernisation and a more uniform application of the current rules as well as ensuring
closer administrative co-operation. Nevertheless, an origin based definitive system remains a long-term goal
for the Commission.

This new strategy has produced new impetus and has already led to the approval of the following
Directives:

(cid:1) the person liable for payment (2000/65/EC);

(cid:1) minimal level of the standard rate (2001/41/EC);

(cid:1) improving mutual assistance on recovery (2001/44/EC);

(cid:1) invoicing and electronic invoicing (2001/115/EC);

(cid:1) e-commerce (2002/38/CE). A Regulation (2002/792/CE) on administrative co-operation on this matter

was also approved by the Council.

Three other Commission proposals, presented in the light of the VAT strategy, are currently under
discussion in the Council:

(cid:1) administrative co-operation and mutual assistance (2);

(cid:1) Fiscalis 2007 Programme (3);

(cid:1) special scheme for travel agents (4).

A more detailed list of the above-mentioned Directives, Regulations and proposals is sent direct to the
Honourable Member and to Parliament’s Secretariat.

(1) COM(2000) 348 final.
(2) COM(2001) 294 final.
(3) COM(2002) 10 final.
(4) COM(2002) 64 final.

(2003/C 92 E/095)

WRITTEN QUESTION E-1755/02

by Hugues Martin (PPE-DE) to the Commission

(19 June 2002)

Subject: Euro-Mediterranean partnership

The commitment of certain cities to fostering cooperation between cities in Europe and cities in southern
and eastern Mediterranean countries is one of the wellsprings of the Euro-Mediterranean partnership’s
dynamism.

For example, within the Eurocities network, the city of Bordeaux has succeeded in setting up a working
party dedicated to this type of cooperation. This working party has drafted a document entitled the
‘Euromed Pact’ which, along with a political declaration from the mayors of the cities involved, was
presented by Mr Alain Juppé, deputy mayor of Bordeaux, in Barcelona on 22 February 2002.

The European Parliament gave its support to the Euromed Pact in its Resolution C5-0128/2002 of
11 April 2002 on the Commission communication to the Council and the European Parliament to prepare
the meeting of Euro-Mediterranean Foreign Ministers at Valencia on 22-23 April 2002. The Ministers
approved the Euromed Pact as part of the Action Plan, and called for its thorough examination.

The European Union’s commitment to activating the Euro-Mediterranean partnership as an extension of
the Barcelona Declaration of 1995 must be put into practice. This can only be done by enhancing the role
played by cities.