Dismay at prospect of “EU-wide tax”

Roger Helmer, MEP for the East Midlands region, has spoken out in support of his ECR colleague, Kay Swinburne who is the Conservative spokesman on economic and monetary affairs in the European Parliament, as she expressed her dismay over news that the introduction of an EU-wide tax rate may have come a step closer.

Reports emerged that Germany and France had moved nearer full fiscal union by announcing that they would have “harmonised” their rates of corporate tax by 2013. The move was interpreted as increasing the prospect of an EU-wide enforced tax rate, something Britain has strongly opposed.

The two countries described their plans as “a first step towards more European coherence” and as being in line with the Euro-Plus Pact treaty (not signed by the UK) which sets out rules for economic and fiscal co–ordination.

Dr Swinburne said:

“This is further evidence that some EU states simply cannot get their priorities right in these desperate economic times.

“Corporation tax must always be handled with care as it is potentially a tax on jobs and growth. That is not what Europe needs right now.”

Mr Helmer added:

“Instead of scheming over the next step towards greater integration and increased federalism, the EU should be working to set its economies free to pursue true flexibility, global competitiveness and growth.”