Measures against tax competition not in Malta’s interests

There is an increasing trend in Europe to combat tax evasion by eliminating tax competition. Measures against tax competition between EU member states agreed upon by the traditional political parties in Europe as well within the European Commission undermine Malta’s interests, said Maltese MEP Alfred Sant and former Prime Minister Alfred Sant when addressing a Conference on the future of the eurozone at ‘Europe House’ Valletta.

“This is definitely not in the interests of small EU states like Ireland and Malta who to date are in control of their sovereignty on taxation. Tax competition is the best tool that small EU states like Malta can use to compensate for the disadvantages they face vis-a-vis the larger EU continental member states like Germany and France. Malta’s biggest challenge in the coming months and years is to reconcile itself against money-laundering and tax evasion with the need to maintain tax flexibility to ensure we remain competitive in the single market.”

Alfred Sant spoke on the uncertainty prevailing in the UK on Brexit negotiation.

“No one can predict what will happen in this regard but a ‘No Deal’ situation will likely have negative effects on Ireland, Holland, Malta and Belgium.”

The Maltese MEP said that two political currents prevail at the moment in Europe. Germany favours the concept of a federal Europe with the same rules applying to all EU member states. Other member states insist on the need of a Europe of nations. This concept is now attracting the likes of populist movements, especially in Italy and France, which are opposing the concept of a federal Europe.

Dr Sant said the increasing social unrest around Europe is the greatest threat to the eurozone.
“We need to create a social Europe which cares for workers, self-employed, pensioners and those in need of social protection. This is eurozone’s greatest challenge at the moment. The European Parliament elections in May will give an indication on the future of the eurozone. It is clear that we need to create a social Europe based on the principles of social justice.”
The Maltese MEP said that the current discontent in France is the outcome of social injustices. Those who need most social protection feel they are carrying the country’s financial burdens whilst the French government is legislating in favour of society’s upper classes. Protests in France are not being organised by traditional political parties or trade union, but they are a popular expression of anger of those who feel abandoned by government.

“This has sparked the protests of the yellow vests who are expressing their disapproval across France hoping this provokes new social measures in favour of those in need.”

The Maltese MEP said that in the coming months the Maltese and Gozitans should sustain their confidence in Malta’s future whilst striving for a social Europe.

Maltese Version – MIŻURI EWROPEJ KONTRA L-KOMPETIZZJONI FIT-TASSAZZJONI KONTRA L-INTERESSI TA’ MALTA

Madwar l-Ewropa qed jiżdied il-qbil dwar miżuri kontra l-kompetizzjoni fil-politika ta’ tassazzjoni bejn l-istati membri tal-UE biex tkun skoraġġuta l-evażjoni tat-taxxa. Dan qalu Alfred Sant meta tkellem dwar l-isfidi li se jkollha Malta fix-xhur u s-snin u ġejjin waqt diskussjoni dwar it-tmexxija taż-żona Ewro f’Dar l-Ewropa fil-Belt Valletta.

“Dan żgur mhux se jkun fl-interess ta’ stati membri żgħar bħall-Irlanda u bħal Malta li sa issa għandhom kontroll fuq is-sovranita` fil-politika ta’ tassazzjoni. Il-kompetizzjoni fil-politika ta’ tassazzjoni hija l-unika għodda ta’ pajjiżi żgħar bħal tagħna biex ipattu għall-iżvantaġġi li għandhom vis-a-vis stati membri kbar tal-kontinent Ewropew bħall-Ġermanja u Franza. L-akbar sfida ta’ Malta fix-xhur u fis-snin li ġejjin hija kif tirrikonċilja l-ġlieda kontra l-ħasil tal-flus u l-evitar tat-taxxa mal-bżonn ta’ flessibilita` fit-tassazzjoni biex nibqgħu kompetittivi.”

Alfred Sant tkellem dwar l-inċertezza li hemm fir-Renju Unit dwar in-negozjati għall-ħruġ mill-UE.

“Ħadd ma jista’ jbassar x’se jsir fir-Renju Unit bħalissa. Iżda jekk ikun hemm ‘No Deal’ l-aktar li jistgħu jintlaqtu huma l-Irlanda, l-Olanda, Malta u l-Belġju.”

L-MEP Malti qal li fl-Ewropa bħalissa hemm żewġ kurrenti ta’ ħsieb politiku. Il-Ġermanja titkellem favur il-kunċett ta’ Ewropa federali b’regoli li jkunu jgħoddu għall-istati membri kollha l-istess. Hemm stati membri oħra li jinsistu li għandu jkollna Ewropa tan-nazzjonijiet. Fuq dan il-ħsieb qed jirkbu l-movimenti populisti, l-aktar fl-Italja u fi Franza, li qegħdin jinsistu li jkollna Ewropa tan-nazzjonijiet u mhux Ewropa federali. Dawn il-movimenti qed jikkuntrastaw mal-għajta tal-partiti politiċi tradizzjonali fl-Ewropa li qed jitkellmu favur il-kunċett ta’ Ewropa federali.

Dr Sant qal li l-akbar theddida għaż-żona ewro bħalissa ġejja mill-inkwiet soċjali fl-Ewropa li baqa’ jtektek u jitqal.

“Hemm bżonn li nerġgħu noħolqu Ewropa soċjali li tieħu ħsieb liż-żgħir, lill-ħaddiema, lill-pensjonanti. Din hija l-akbar sfida li għandha ż-żona ewro bħalissa. L-elezzjonijiet tal-Parlament Ewropew se jagħtu indikazzjoni tal-futur taż-żona ewro fi żmien li qed jinħass aktar il-bżonn ta’ Ewropa soċjali li timxi fuq il-prinċipji tal-ġustizzja soċjali.”

Alfred Sant qal li l-iskuntentizza li hemm fi Franza bħalissa ġejja mill-fatt li ż-żgħar qed iħossu bir-raġun li huma qegħdin jerfgħu l-piżijiet finanzjarji waqt li l-Gvern Franċiż jilleġisla favur min qiegħed komdu. Il-protesti madwar Franza mhux qed ikunu organizzati minn partiti jew trade unions tradizzjonali, iżda qed ikunu espressjoni popolari ta’ rabja fost dawk li jħossuhom minsija mill-Gvern.

“Dan qed iwassal biex dawk tal-ġgieket sofor qegħdin joħorġu jipprotestaw madwar Franza bit-tama li jittieħdu miżuri soċjali favur iż-żgħir. ”

L-MEP Malti saħaq dwar il-bżonn li jkollna fiduċja f’pajjiżna waqt li naħdmu favur Ewropa soċjali fl-elezzjonijiet Ewropej.