91998E3545

WRITTEN QUESTION P-3545/98

by Friedrich Wolf (V) to the Commission

(18 November 1998)

Subject: Tax harmonization

What action does the Commission intend to take in the field of tax harmonization and tax coordination as a result of the changes within the Council following the Bundestag elections in Germany? Does the fact that Germany, like other influential Member States, now has Greens and Social Democrats in its government mean that there are renewed prospects of a reduction in competitive tax dumping in Europe?

Answer given by Mr Monti on behalf of the Commission

(14 January 1999)

Measures to combat harmful tax competition received the unanimous support of the Ecofin Council on 1 December 1997. This objective was clearly reaffirmed by the Ecofin Council on 1 December 1998.

With a view to reducing the distortions that still exist within the single market, preventing substantial losses of tax receipts and rearranging tax structures in a manner more conducive to employment, the need for coordinated action at European level led to the adoption of a code of conduct for business taxation designed to curb harmful tax measures.

This political undertaking has been unanimously endorsed. The Honourable Member will agree with the Commission that it represents a positive step that should be pursued and encouraged.