Newsletter 6/2011 Dear Members, Dear Readers, The Taxpayers Association of Europe (TAE) was founded as a result of the citizen s wish to protect himself against the state s increasing tax demands. It is a union of 29 national taxpayers associations and has more than a million members. The TAE aims to create a society with less taxation and more personal freedom. Besides, it wants to achieve more economic efficiency in the public sector. Therefore, the TAE exerts influence on the legislation to limit the tax burden, to prevent unjust violations of revenue officers and to provide clear information on taxation. The current Newsletter of the Taxpayers Association of Europe contains once again important information about issues being discussed and settled on European level affecting taxpayers interests. Our association has committed itself to spread information and to promote the dialogue between public authorities and taxpayers. We invite you to articulate your opinion and to circulate the information. Enjoy the reading! We look forward to your Feedback. Michael Jäger, Secretary-General Frédéric Maas, project manager Content Commissioners Barnier and Rehn on the European banks stress test results Rules on conflicts of interest of Special Advisers Consultation on Social Investment Funds as part of the Social Business Initiative EESC: Tax and services system should not be a maze for citizens Basic accounts for every citizen proposed 1
Newsletter Commissioners Barnier and Rehn on the European banks stress test results Before the summer break, Commissioners Barnier (Internal Market) and Rehn (Finances) stated that the great majority of European banks are much stronger than in the past as well as more likely to address downturns successfully. The EU-wide stress tests conducted in July were said to be stricter than previous ones. The definition of capital is allegedly narrower, and more severe scenarios were used. Moreover the Commissioners emphasised the full and detailed transparency attached to these tests and congratulated the European Banking Authority on their performance and dedication that had ensured the overall credibility of the test. Barnier and Rehn emphasized that stress tests such as the last one represent an essential tool in increasing the financial sector s robustness and credibility, and that they should be considered in the context of a broader effort towards a reform of the EU financial sector and financial stability. According to their statement, all financial actors in all markets must be properly regulated and supervised. The actions taken so far in response to the stress test are being met with satisfaction by the Commissioners, who nonetheless claim that the Commission will remain vigilant, pursuing its monitoring of the resilience of the EU financial sector. On 12 July, the Council for Economic and Financial Affairs (Ecofin) had drawn up a set of measures in case remedial actions should be necessary to tackle any vulnerability indentified by the tests. The Ecofin headed by Jacek Rostowski, Minister for Finance of Poland, also decided to close the excessive deficit procedure with regard to Finland, concluding that the country s excessive deficit had been corrected. The final and summarizing press release on the stress tests can be found here. 2
Rules on conflicts of interest of Special Advisers The European Ombudsman, P. Nikiforos Diamandouros, criticised the Commission's rules for the handling of possible conflicts of interest involving the tasks of Special Advisers and their outside activities and proposed improvement measures. The Commission now disposes of six months to inform the Ombudsman of the follow-up it has given to his remarks. The Ombudsman s intervention occurred following his investigation into a complaint by an NGO as to alleged procedural errors in the Commission s appointment of a former President of the European Parliament, Pat Cox, as Special Adviser to the then European Commissioner for Health and Consumer Policy Commissioner, Meglena Kuneva. The NGO suspected that the Commission had failed to adequately address the issue of a possible conflict of interest between the Special Adviser's tasks and his activities. The Ombudsman criticised the Commission for failing to adhere to the procedural obligations required by its own rules on Special Advisers and stated "I hope that the Commission will take rapid action to address the general problems concerning its procedures governing this matter, which my inquiry has revealed". The European Ombudsman is entrusted with investigating complaints about maladministration in and by the EU institutions and bodies. Any EU citizen, resident, enterprise or association can file a complaint with the Ombudsman. Consultation on Social Investment Funds as part of the Social Business Initiative The Commission incites all citizens and organisations to contribute to a consultation, thereby seeking feedback on presented options for supporting social businesses through investments from private individuals. Here, investment funds could act as mediator, having been for some time now a reliable mechanism for matching investors and those in quest of investments. The very same way, social businesses could obtain funding in the future. First reactions suggest certain barriers to funding social businesses in this way. Reasons for these problems reside in the very nature of these businesses and stem from existing rules applying to 3
those funds. The consultation outlines some of the issues and asks for input on possible next steps. The last day for submitting contributions is on 14 September 2011. The consultation document can be found here. EESC: Tax and services system should not be a maze for citizens The European Economic and Social Committee (EESC) has issued a request for an easing of cross-border difficulties imposed on European citizens and businesses. According to the EESC, citizens and businesses confidence when dealing with cross-border matters must be improved by supporting the single market for services - being the main driver of the EU economy, accounting for roughly 70% of its GDP - on the one hand and reducing cross-border tax obstacles on the other hand. The EESC praises the points of single contact system, which is supposed to facilitate the access to country-specific information in each Member State. The EESC believes moreover that there should be adequate mechanisms in place to ensure that cross-border taxation procedures be simple and clear. The EESC recommends the establishment of a service providing citizens with information, collecting taxes and providing necessary documentation. Finally, the EESC recommends the implementation of an independent Cross-Border Taxation Observatory. Basic accounts for every citizen proposed According to the European Commission, the access to a bank account has become an essential need of every citizen. Not only does the lack of an account with basic functions (basic account) make social and economic interactions harder, it is also said to make them more expensive, virtual money having in many sectors nearly completely replaced cash payments. Recent studies show that roughly 30 million citizens over 18 years do not dispose of an own account. Of these, between 6 and 7 million have simply been refused an account and can therefore not benefit from the common market adequately according to the Commission. 4
The Commission now requests that the Member States allow these citizens access to bank accounts, regardless of their country of residence or their financial situation. A basic account is being defined as allowing for payment by debit card, but not necessarily by credit card. There shall be no right for but much rather a guarantee for an account. Moreover, the Commission asks for costs of account management by banks to be reasonably affordable by all and for national campaigns to raise awareness regarding this issue. Please find more information on the Commission s plans as to this scheme here. Taxpayers Association of Europe Brussels Office Avenue de la Renaissance 1 - B-1000 Brussels Phone: +32 (0) 2 738 7112 - Fax: +32 (0) 2 736 0571 www.taxpayers-europe.org 5