Local view for "http://purl.org/linkedpolitics/eu/plenary/2009-02-19-Speech-4-035"
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"en.20090219.3.4-035"2
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".
Madam President, I am fully aware of the shortcomings of the Commission proposals: I know that they are modest and limited in scope. However, I am also aware of the reluctance of certain Member States vis-à-vis reduced VAT rates in general and the extension of reduced VAT rates in particular. This reluctance certainly sets limits on our ambitions, as we need unanimity in the Council.
For the Commission, there were two options. The first was to table an ambitious proposal, which is fully justified, and to run the risk that it might not be approved by the Council. In that case, 18 Member States that currently apply reduced VAT rates on locally supplied, labour-intensive services should return to the standard rate. An increase in VAT rates from 5-6% to 20-25% would certainly result in the bankruptcy of thousands of small and medium-sized enterprises and in the loss of tens of thousands of jobs at a time of serious economic crisis.
Therefore, the Commission has chosen the other option, which hopefully will receive unanimous support in the Council: saving jobs, giving support to the SMEs and boosting the building sector.
As many speakers mentioned the issue of energy efficiency, I want to repeat what I already said in my introductory remarks: in April we will come forward with a proposal that will be focused on climate change and energy efficiency issues, a review of the Energy Taxation Directive, and the Green Tax Package proposing reduced VAT rates for green services that are aimed at increasing energy efficiency.
I have been encouraged by the understanding and support expressed in this plenary debate. I thank Parliament for its support and understanding, and in particular the Committee on Economic and Monetary Affairs and Ms van den Burg for their work."@en1
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