“Brussels feels time is right to suggest EU tax”

It won’t be a surprise if Brussels uses the economic crisis as an excuse to harmonise member states taxation policies. Tax harmonization would be also a manifestation of a European economic government. If there is greater economic integration that would lead to tax harmonization which will apply to the whole EU and not just the Eurozone. Algirdas Šemeta, the European commissioner for taxation, is prepared to push for an agreement on common corporate tax rules. He is also planning to oblige Member States to levy a CO2 tax on fuels in order to cut emissions. Ultimately, we will see the creation of EU taxes.

In fact, Mr Van Rompuy has started pursuing his job even before being appointed, calling for EU direct taxes. During a Bilderberg Group dinner he said “New resources will be necessary for the financing of the welfare state. Green tax instruments are a possibility, but they are ambiguous: (…) But the possibilities of financial levies at European level must be seriously examined and for the first time the large countries in the union are open to that."

And now, the EUobserver reports “As the economic downturn sees many member states seek ways of cutting back on public spending, the European Commission believes the time is right to put the thorny idea of the EU raising its own taxes back on the table.” Janusz Lewandowski, the EU budget commissioner, believes that member states are now more willing to accept the idea of an EU tax than in the past. The UK must veto such proposals.