Juncker: Fiscal union must include common tax base

08 June 2012

Plans for greater EU integration, due to be sketched out at the leaders' summit in three weeks, should include changes to tax policy including a common corporate tax base, Luxembourg prime minister Jean-Claude Juncker said.

Mr Juncker is one of five people drawing up proposals for greater fiscal and political union to come before the summit in response to the crisis threatening the euro. "The next step is a financial union and we need to have another look at budget discipline and deeper economic and monetary policy, including tax policy when it comes to a common tax base", he said. 

The common corporate tax base is being strongly resisted by Ireland but the [Irish] Government signed up to discuss all tax issues and while it can veto any change, a number of states could then go ahead together, which would put a lot of pressure on the country. 

Mr Juncker is working with European Commission president José Manuel Barroso, Council president Herman Van Rompuy, and the head of the ECB Mario Draghi on the outline of a plan for fiscal and political union. 

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