Local view for "http://purl.org/linkedpolitics/eu/plenary/2005-12-01-Speech-4-021"

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"en.20051201.3.4-021"2
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"Mr President, Commissioner, it is – as the previous speaker, Mr Rosati, said – pretty astonishing and disappointing that we should, four weeks before the end of the year, be debating something that actually should have been sorted out ages ago. The fact is that the special rules introduced in 1999 – for three years in the first instance – on reduced rates of VAT applied only to a few Member States and to certain labour-intensive services. The original timeframe was, following its expiry, extended repeatedly, indicating that it was not possible even in the past to come up with a definitive solution. Failing another decision, this rule will cease to apply at the end of this year. What we do know is that the expectations raised by the introduction of the special rules were met – if at all – only in part. It was in 2003 that the Commission established that the reduced rates of VAT were not being reflected in lower prices and that they had practically no perceptible influence on the employment situation. It was this that led my group to make its support for the joint, all-party, motion for a resolution dependent on the fulfilment of several conditions. The first of these was that the extension should be a one-off event, effective only until the end of the next year. Secondly, there was the condition that the Commission should initiate a comprehensive study of the measure’s effectiveness. Thirdly, after the end of the extension period, that is to say, with effect from the end of next year, the only areas to benefit from the reduced VAT rate would be those where the reduction had had a demonstrably positive effect on prices and employment. In those, then, the special arrangement would become permanent, and other areas, those in which it had proved ineffective, would be excluded from it once and for all. New Member States would also be allowed to apply the reduced rate so that there would be no distortions of competition in the EU. We demand a split vote on paragraph 2 of the joint motion for a resolution, as the rules have been in force for some considerable time, and the report referred to is, in our view, sufficiently detailed and explicit."@en1

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