Local view for "http://purl.org/linkedpolitics/eu/plenary/2000-09-06-Speech-3-395"
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"en.20000906.17.3-395"2
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"Mr President, the good news is that Europe has not run out of work. The bad news is that, more and more often, work goes undeclared. Failing to declare work is no mere peccadillo. The wide-boy in the local pub who brags about ripping off the State should no longer be indulged. In Germany, for example, work is being lost due to illegal employment and, for every ten thousand jobs, DM 240 million is lost in taxes and social security contributions.
In her splendid and balanced report, Anne Glase estimates the volume of undeclared work in the EU at between 10 and 20 per cent of GNP. People who engage in undeclared work are to be found not only among the unemployed and among those who have entered the country illegally and have to suffer at the hands of those who profiteer from unemployment. They are also to be found among part-time workers who, in addition, are working at night and in the evenings on their computers, as well as among the self-employed who do additional work they do not declare. Those affected by this are small and medium-sized businesses which, unlike competitors who operate illegally, obey the law. Jobs cannot be safeguarded in this way. Nor can new ones be created.
What is to be done? Firstly, abuse of the rules governing work must be punished, with fines for those who engage in undeclared work and for those who employ others to do such work. Those who hire workers who do not have work permits should be excluded from being awarded public contracts. Moreover, they should expect to receive custodial sentences.
Secondly, thorough checks, including cross-border checks, by the relevant authorities are necessary. Town clerks’ offices must cooperate with factory inspectorates, and tax offices with immigration authorities, preferably in task forces.
Thirdly, incentives to abuse the system must be reduced. Taxes and social charges payable by companies must be significantly reduced, as must VAT on labour-intensive services.
Fourthly, it is particularly important that there should be more awareness-raising campaigns in order to convince all relevant target groups that undeclared work needs to be combated. It is extremely damaging both socially and economically. Acting illegally is anti-social."@en1
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