Local view for "http://purl.org/linkedpolitics/eu/plenary/2009-02-19-Speech-4-014"
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"en.20090219.3.4-014"2
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".
Madam President, Commissioner Kovács, ladies and gentlemen, and especially Mrs van den Burg, it is regrettable that here in Parliament we are only able to agree on the Commission’s proposal and not on the actual report produced by Mrs van den Burg. We would have gladly given our support to this report in its original version and we congratulate the rapporteur. However, it has been rejected by the majority in the Committee on Economic and Monetary Affairs. The decisive factor was the ‘no’ vote from the Group of the European People’s Party (Christian Democrats) and European Democrats and the Group of the Alliance of Liberals and Democrats for Europe. After the defeat in the individual voting, the committee was not then prepared to adopt any report at all, and this we very much regret.
When it comes down to it, we have a lot to gain from the Commission’s proposal for a directive. We particularly welcome the fact that the Commission gives a positive assessment of the results of the Copenhagen study that was commissioned by the Commission itself. The study proposes the retention, and even the extension, of reduced VAT rates on services and other activities. This will secure jobs, particularly in small- and micro-sized enterprises, and bring whole sectors out of the underground economy and transform them into a regulated economic activity. In the present crisis, this stabilisation is very important. It will secure, and hopefully create, jobs.
Of course, we on the Left welcome the reduction in VAT rates as a matter of principle. It is well known that, being an indirect tax, VAT hits those dependent on their wages and low earners particularly hard. High and very high earners must bear a greater tax burden. In recent years, these high earners have had their burden reduced in an irresponsible manner in all European countries.
The Commission’s proposal is intended to be a regulation of unlimited duration. This, too, is welcome. This will avoid the less than ideal situation of us having to extend the reduced tax rates every couple of years. It will create legal certainty for the service providers. As a German Member, I am particularly pleased that the German Federal Government has finally ceased its blocking of a permanent regulation. This is something positive for a change from the grand coalition in the Federal Republic of Germany.
Of the amendments tabled, we support those that are in favour of extending the reduced VAT rates. As regards the supply of alcoholic beverages, however, the existing regulations should remain in place. As we know, higher VAT rates in this area will primarily serve to protect public health. Member States should, therefore, be given a free hand in this regard, too. Thank you very much."@en1
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