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27 November 2011

FT: EU Commissioner for taxation has London in his sights


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During an interview with the Financial Times that will raise the hackles of Westminster eurosceptics, the EU tax Commissioner called on the chancellor to ignore special pleading from the City and bend to the will of humble taxpayers, who deserve to be repaid for the financial crisis.


But the European Union tax commissioner clearly takes courage from the conviction that his proposal for an EU-wide financial transaction tax (FTT) is on the right side of public opinion, even in the country where most of the £50 billion (€57 billion) revenues would be generated.

 “I don’t think the UK is just the City of London. There is a bigger population out there”, he says with an impish smile, before rattling off EU studies that suggest half of voters are “supportive of the tax”. “I think that governments, when deciding on policies, also have to take into account the positions of their citizens at large, not only the positions of certain groups in society.”

Given that the advice is coupled with a threat to take Mr Osborne to court if he fails to rewrite the multibillion pound UK-Switzerland tax accord, it is evident Mr Šemeta does not rank his popularity among UK ministers as a top priority.

The two-time Lithuanian finance minister admits driving tax policy from Brussels requires “great patience”, as any new rules require unanimity among all 27 EU Member States. When it comes to British ministers and the FTT, he may need that patience in spades.

Full article (FT subscription needed)



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