Local view for "http://purl.org/linkedpolitics/eu/plenary/2005-12-01-Speech-4-028"
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"en.20051201.3.4-028"2
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"Mr President, while I support the report’s conclusions with regard to the minimum standard VAT rate, it is my duty to share a few problems I have with some of our rapporteur’s arguments, and I am pleased to have the support of the great majority of my group in this matter.
After much thought, the idea of proposing a maximum 25% for the standard VAT rate seems wise to me. We would therefore have a kind of corridor between 15% and 25%, somewhat like the currency snake in its day.
Let us recall that the starting point in 1992 was indeed one of moving in the direction of converged VAT rates in the context of the single market. This convergence did not actually take place, but Parliament’s proposal to set a maximum rate of 25% could decisively encourage us to move in that direction and thus prevent too great an imbalance between rates, something that is disadvantageous. That is why I support this proposal, which has been adopted by the Committee on Economic and Monetary Affairs and endorsed on two occasions by the European Commission.
I will not disguise my reservations, either, regarding the general idea, outlined by the rapporteur in his explanatory statement, to fundamentally restructure the tax systems by increasing indirect tax at the expense of direct tax. For the time being, I can see many more disadvantages than advantages to doing this: the danger of stimulating even more the inflationary pressures that are already too much in evidence; the danger of taking the momentum out of an often lifeless internal demand; and the problem in terms of the social equity of such restructuring. In short, let us be very careful before embarking on such paths.
Allow me, finally, to say something about reduced VAT rates in relation to labour-intensive activities, among other areas. The non-renewal of this measure, which has positive effects on employment, whatever Mr Klinz’s and others’ views on the matter, would not only be regrettable, as you said, Commissioner, but would also be a real catastrophe for all of the sectors concerned. I support Mrs Bérès, who very competently explained our concerns in order to press the Council, when it convenes for the last-chance meeting on 6 December, to reach a solution on the basis of the Luxembourg proposal, which has been taken up and enhanced by the UK Presidency. I therefore hope that our resolution on this matter will at last make an impression on the Council, which still has no representatives in this Chamber.
With things as they stand, Mr President, I believe that it should be possible for the Member States to have a great deal more scope to determine which sectors will benefit from a reduced rate, and the cause of the French catering workers, to give just this one example, seems, in my opinion, to be one of the most worthy. I therefore send out an appeal for the new German Government to demonstrate greater flexibility."@en1
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