Bonde’s Briefing 23.04.2008
In this weeks edition of Bonde’s Briefing you can read about goodbye to the EP, the fight against fraud, new books and misinformation in Ireland
Hanne Dahl new MEP - I leave the EP 9 May
Wednesday 24 April I will formally sign a protocol of withdrawing in the office of the secretary general of the European Parliament. Parliament will then send a letter for the Danish parliament asking for a new member. Tuesday 6 May the Danish Parliaments special committee will approve my 37 year old successor, Hanne Dahl.
7 May 18.30 I will have my farewell reception arranged by my group in the Members saloons close to Members restaurant in the Spinelli building in Brussels.
8 May I will have my last vote and Parliament will announce my leave and approve the new member. At the Unions birthday, 9 May, Hanne Dahl, will then be the representative for the Danish JuneMovement in the European Parliament.
She will be in Brussels 7 May.
Members who vote against transparency
The vast majority of members in the European Parliament have voted against the publication of an internal audit report about fraud with members’ secretarial allowances. They efficiently hide how money goes from taxpayers to thier own pockets or their parties.
At the bottom of this briefing you will find a link for the Parliament’s list of roll call votes concerning the amendment to make the report without the names of the fraudulent MEPs public.
The proposed amend was:
“25a. Is of the opinion that internal audit reports should be made public;“
New books on the Lisbon Treaty
Today my new book on the Lisbon Treaty is ready for FREE electronic downloading. The title is “From EU Constitution to Lisbon Treaty”, and this is what it is about.
The printed version is for sale at the eubookshop.com for 10 €.
A Reader-Friendly edition of the Lisbon Treaty with a 3000 words alphabetical register and entries and overviews in the margin will soon be for sale for 20 € in the eubookshop.com. It can also be downloaded for FREE.
Dealers can have 30 % discount when they buy more than 5 books.
Here is a review by Anthony Coughlan, Secretary of the National Platform EU Research and Information Centre, Ireland, and Senior Lecturer Emeritus in Social Policy at Trinity College Dublin.
Misinformation in Ireland
I was in Ireland this weekend. Accidentally I met the Commission President José Manuel Barroso at the university of Cork. I had two other meetings. He made a splendid speech, particularly when he was outside his manuscript.
It became clear to me that his services had agreed a part of his speech with the Irish government representatives to mislead the Irish citizens about a hot issue in the Irish debate, their low corporate tax at only 12,5 %.
Mislead is a strong - but very precise - expression. Barroso said there was nothing new in the treaty about taxes. This is positively wrong. The new Art. 113 TFEU about taxes add a new phrase of “and to avoid distortion of competition”. This is a clear invitation to the European Court to out-law the very distorting low Irish rate.
Today the EU is only competent to harmonise tax laws if it is “necessary to ensure the establishment of the internal market”. With Lisbon the EU can also harmonise if competition is distorted - this is a much wider concept. When is competition not distorted by differences?
In a new special protocol (no 27) it is also added that the Internal Market “includes a system ensuring competition is not distorted”. National hindrances can be outlawed, even by legislation based on the so-called flexibility clause.
In Art. 116 TFEU distortions of competition can be hindered by laws decided by qualified majority in the Council. First, the Commission consult the distorting Member State. “If such consultation does not result in an agreement eliminating the distortion in question the European Parliament and the Council, acting in accordance with the ordinary legislative procedure, shall issue the necessary directives. Any appropriate measures provided for in the Treaties may be adopted”, it is mentioned. The text in bold is the new addition from the Lisbon treaty. Hindrances may be eliminated by majority voting.
So, if I was Irish and interested in the low corporate tax - which I am not - I would propose a strong protocol to protect the low rate. It is not difficult to foresee an attack from another country - or company. The French Presidency has already signalled its plans for taxation before they enter into office 1 July.
The Irish government has criticized the French intentions. Well, the issue is also included in the annual work program for Barrosos European Commission for 2008!
“Work will also be continued in order to allow companies to choose an EU-wide tax base as set out in the 2008 Annual Policy Strategy. An impact assessment has been launched to examine the options and their implications”, it is said at page 7.
The Commission will only publish their proposal - after the Irish referendum. All controversial proposals are delayed before referendums. This is normal practise for the Commission. It is only un-normal that the method has been leaked to the press with the publication of a private e-mail from a British diplomat referring information received from the Irish government in confidence.
The Commission is working on a proposal to harmonise - maybe not the rate, but the base for calculating corporate taxes. The economic effect for Ireland may be the same.
Ireland has earned a lot on multinational companies settling in Ireland but selling products to the whole of the EU. Now, the Commission proposal - according to rumours - will distribute profit for taxation according to the spread of the turnover.
It does not sound surprising - or unjust - to me. This is the way the Commission is thinking - in despite of the Barroso speech to calm the Irish voters before their referendum scheduled for 12 June.
A joint rate will require unanimity, yes. But to outlaw the low rate in a Court verdict only require a simple majority in the Court in Luxembourg. It is mis-leading not to tell the Irish the full truth about the Lisbon treaty and taxation.
Even new direct taxes for the Union could be introduced by the Lisbon treaty, see Art. 311 TFEU on the establishment of new own resources by unanimity among Member States.
“...it may establish new categories of own resources”, it is said in the new Art. 311.
It is also said “The Union shall provide itself with the means necessary to attain its objectives and carry through its policies”.
Bye, bye Budgetary Control Committee
I have been working with budget control for very many years and held my last speech on budgetary control this week. You can read it here (in Danish)
Next week i Brussels
Next week is committee week in the EP. I will be in Iceland as Vice President of the Nordic delegation.
Here is the agenda for the coming week
Read more: roll_call_220408.pdf
