Local view for "http://purl.org/linkedpolitics/eu/plenary/2007-04-26-Speech-4-011"

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"Mr President, I am going to read the Commission statement on relations between the European Union and Switzerland, and although you and I speak the same language, I shall do so in English. In view of the Swiss position on EU accession and the European Economic Area, there is currently no alternative to further strengthening of bilateral relations. With that in mind, the Commission is prepared to look into the Swiss proposal for the negotiation of a general framework agreement, provided that it brings an added value to our relations, for instance with regard to the updating of existing agreements in line with the evolving Community . Mr President, the Commission is pleased that this item has been put on the agenda because it is now more than two years since we last discussed Switzerland. It was in 2004, on the occasion of the conclusion of the 10 new bilateral agreements. Let me start, therefore, with a general remark. The bilateral and multilateral relations that link the EU and Switzerland are very good. Switzerland is a highly valued partner for the EU in many areas. Our bilateral relations are based on a solid foundation of around 20 important and over 100 smaller sector-specific agreements. These agreements range from free trade in goods and the free movement of persons to Swiss participation in our research and Schengen cooperation. Any existing differences should not have an inordinate impact on our relations. In February, the Commission adopted a state aid decision on Swiss cantonal tax favours for certain types of companies, in particular holding companies. This decision has received much media attention in Switzerland and has been dramatised, by some, into a major conflict. Legally, the Commission has no doubts that the cantonal tax schemes qualify as subsidies, because these tax regimes offer unfair tax advantages to companies established in Switzerland for profits generated in the European Union. Income generated in Switzerland is taxed higher than profits made in the EU. This unequal treatment is at the heart of the state aid problem. The rules in question are liable to distort competition and may affect trade between Switzerland and the EU. All criteria of Article 23 of the agreement of 1972, the provision which declares such state aid incompatible with the proper functioning of the agreement, are therefore fulfilled. Politically, too, it seems hard to accept that a neighbouring country that enjoys privileged access to our internal market and takes part in a large number of our programmes and other activities should grant such tax favours. The benefiting companies are often set up with the sole aim of avoiding the taxation of profits in our Member States. I would like to point out that tax schemes of this kind or similar are not allowed inside the EU, pursuant to the state aid rules set out in the EC Treaty. In the past, the Commission has adopted decisions against them. We are not against tax competition, which also takes place among the Member States, but it must be fair. The Commission wants to find a mutually acceptable solution. Therefore, we also asked the Council in February for a mandate to start negotiations with Switzerland on this topic. Member States support the Commission in this respect, and such a mandate is currently being prepared in the Council. I am also counting very much on Parliament’s support in this matter. We proceed from the belief that we will find a solution for this problem, just as we have always found solutions for problems in our relations with Switzerland in the past. On a different matter of importance, I would like to express the Commission’s expectation that Switzerland will, hopefully, soon be ready to negotiate the inclusion of Bulgaria and Romania in the Agreement on the Free Movement of Persons. If Switzerland were to exclude the citizens of two Member States from this very important agreement, it would be unacceptable for legal, institutional and political reasons. Bulgaria and Romania should also receive a financial contribution from Switzerland for the reduction of economic and social disparities, on the same terms as the other 10 new Member States."@en1
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