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Prof. Tanzi stated that ‘globalisation has changed the rules of the game and tax competition does not only exist within Europe, but throughout the world.’ Tax cuts in Europe could well go in hand with cuts in government spending, e.g. in the health care sector and on pensions. Less fiscal engagement and more privatisation of services would lead to higher competition and more effective products.People should therefore have the possibility to choose which ‘package’ they want to pay for.
Prof. Vedder, also a US advisor to Russia on tax issues, warned provided some useful information about the advantages of low-tax countries and their higher growth performance. ‘A tax harmonisation’, he said, ‘would be even more harmful to the EU economy’.
Mr von Wogau stated that tax competence and tax competition should be left to the EU Member States and he opposed any attempt of the European Commission to achieve tax competence.
With a view to the ‘Convention’ Mr von Wogau stated that the discussions on ‘Economic Governance’ related to tax harmonisation should not only be treated carefully but should clearly be opposed.
(further information - as the speech by Mr Vedder - will be available soon)