President Barroso: Strengthening the EU's economic partnership with the world (G8 summit)

10 June 2013

Barroso set out the EU's views on the 'Three T's' identified for this year's G8 summit in Lough Erne: Trade and the economy; Taxation; and Transparency. (Includes link to the EU's role and actions and other G8 links.)

Trade

Free and unimpeded international trade among open economies is a vital engine for growth, jobs and development. The European Union has always been a staunch supporter and promoter of free trade and of the multilateral system. While working tirelessly to promote progress in key areas of the Doha Development Round, we are also deepening our trade and economic relationships with many countries and regions across the world. The most prominent examples right now are the Transatlantic Trade and Investment Partnership with the United States, on which we want to launch negotiations before the summer, and the free trade agreement that we have started negotiating recently with Japan.

The bilateral trade agreements that we have initiated and concluded are not in contradiction with our multilateral ambitions and certainly do not replace our commitment to the World Trade Organization (WTO) and the Doha Development Agenda. Indeed, they are a stepping stone towards free and multilateral global trade.

We will continue to try to move forward the multilateral agenda where possible. For example, we are fully engaged with our partners to conclude a WTO trade facilitation agreement, which would have a huge positive impact for developing and least developed countries. The G8 summit should make the case for such an agreement and then, together with the G20, provide the political impulse needed to close the deal at the WTO ministerial meeting in Bali in December.

Taxation

I strongly welcome the new willingness to join forces and cooperate more effectively to fight tax evasion and avoidance, in Europe and worldwide. Tackling these issues is, above all, a matter of fairness. In difficult economic times it is particularly urgent to ease the burden on honest tax payers and businesses and hold those accountable who do not respect the rules of the game. Tax evasion and avoidance costs the European Union €1 trillion every year, which is the equivalent to the EU’s next seven-year budget. The global bill is much higher. That is money that should be available to spend on education, skills, healthcare and infrastructure investment in both developed and developing countries.

Within the EU we are taking common action on exchange of information, on tax havens and on aggressive tax planning. There is a new willingness among our members to finally agree a strengthened savings tax and the mandates to negotiate tax agreements with partner countries. This is complemented by new rules for stronger administrative cooperation and greater transparency, which should come into effect as soon as possible. So in Europe, the arsenal for fighting tax evasion is being used and stepped up.

But, as we know, in a globalised world, tax avoiders are taking advantage of gaps and loopholes in the different tax regimes around the globe. So we are convinced that there is a need to improve tax governance everywhere. Let us therefore foster a unity of purpose at the global level. The G8 summit is a great opportunity to inject further momentum. Our work should focus on the compatibility of standards for automatic exchange of information, taking into account the particular features and legal requirements of all countries involved. The EU would strongly support a joint effort towards a new multilateral standard in the context of the Orgnisation for Economic Co-operation and Development. We believe that our EU Savings Tax Directive can be an important point of reference here.

Transparency

The EU has been a strong advocate of greater transparency in payments made to host governments by extractive industries. With the brand new update of the EU Transparency and Accounting Directives, we will hold governments and companies involved in the sectors of oil, gas, mining and forestry more to account and protect citizens around
the globe from unfair distribution of their national wealth.
 
The European Union, as a full member of the G8, remains committed to play an active role in the G8. I am looking forward to open and candid discussions with fellow leaders in Lough Erne.

See pp 30 & 31 of the G8's Summit Magazine

Press release, 13.6.13

The G8 summit in Lough Erne (UK) on 17-18 June 2013: the European Union's role and actions, 14.6.13

See also


© G8