Local view for "http://purl.org/linkedpolitics/eu/plenary/2004-12-14-Speech-2-134"

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"en.20041214.8.2-134"2
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". The adoption by the Council, on 22 October 1999, of Directive 1999/85/EC amending Directive 77/88/EEC, was intended to foster the experimental scheme of reduced VAT rates for labour intensive services, thereby enabling those Member States wishing to do so to test the effects of reduced VAT on those sectors in terms of creating jobs and combating the parallel economy. The experiment was eventually the subject of an assessment report that revealed that it is not possible to establish a direct correlation between reducing VAT rates and combating unemployment and the parallel economy. Reducing VAT rates does not strike me as the best or most appropriate way of boosting the labour market and reducing the parallel economy. Given that nothing, however, was laid down – the experiment was due to finish definitively on 31 December 2003 – regarding the possibility of the new Member States applying reduced rates, the situation had become unfair. As I feel that the new Member States should be entitled to the same opportunity, I voted in favour."@en1

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