Local view for "http://purl.org/linkedpolitics/eu/plenary/2010-05-05-Speech-3-556"
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"en.20100505.77.3-556"2
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The extremely difficult situation which Greece is in, not to mention the deeply concerning information about other European Union Member States with serious problems, highlights to us that the economic crisis has not run its course and that, in spite of some progress made by the European Union’s older countries, there is still the risk of major imbalances.
Unfortunately, in the situation where some countries are facing dwindling budget revenues, the immediate temptation is to raise taxes and duties. This is exactly what is in the process of happening in Romania too. The government is discussing at the moment increasing the flat income tax rate and VAT. It is wrong to believe that a sudden increase in taxes and duties will bring in more money for the budget. The impact of such measures is extremely damaging to the economy in the medium and long term.
Regrettably, the European Union is finding it difficult to develop a common strategy against the economic crisis. However, I think that better communication and cooperation are required between the countries which have emerged from the crisis using proactive, incentive measures, rather than by raising taxes, and those facing major problems, which are in the process, out of desperation, of raising taxes and duties, thereby running the risk of sinking even deeper into crisis."@en1
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