Local view for "http://purl.org/linkedpolitics/eu/plenary/2005-12-01-Speech-4-033"
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"en.20051201.3.4-033"2
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"Mr Chirac deliberately lied to French catering workers by making them believe that it was possible for him to reduce the VAT on their work without asking for Brussels’ permission.
It is not certain whether the Council will reach an agreement before the end of the year on the recasting of the VAT Directive, and particularly on the application of a reduced rate for labour-intensive services. If the authorisation of these reduced rates is not extended in one way or another on 1 January 2006, then entire sectors, with construction foremost among them, will feel the full force of the consequences.
Why have we ended up here? In terms of the labour-intensive services, this is a ploy to pressurise the Council into adopting a comprehensive reform of the VAT Directive. In terms of the catering sector, the Annexes of the directive must be changed. Germany is opposed to this. It does not want to see similar demands sprouting up on its soil at a time when it plans to increase its indirect tax by 20%. Is Germany wrong? No.
These problems would not exist if the Member States had held on to their fiscal sovereignty and were able to use it to stimulate employment. The real mistake and the real errors lie with those who sought to strip the Member States of their sovereign powers."@en1
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