Pity if EU competition policy is driven by tax populists pushing for harmonisation

Former Prime Minister and Maltese MEP Alfred Sant told the European Parliament that it would be a pity if EU competition policy comes to be driven according to the urgings of tax populists who are pushing for harmonisation of tax policies and have no problems with using competition policy to achieve this. Dr Sant, addressing the European Parliament as S&D rapporteur on the Annual Report on Competition Policy, said this approach, apparently progressive, could serve to perhaps screen another reality: at a time when European economies are again growing well, working and middle class people as well as pensioners are not being compensated for the sacrifices they had to make during the years of austerity. They will not be consoled by being told that in the interests of competition, taxation within the Union should be harmonised.

Dr Sant said that increasingly, competition policy is taking a greater importance in the EU’s profile.

“One hopes that this is not happening for the wrong reasons.” he said.

The Maltese MEP said that in principle, competition policy is meant to ensure that free market rules apply to the benefit of consumers all over Europe. In practice, given that historically the role of national governments has been a crucial element of European economic development, the focus has frequently been – still is – more on questions relating to state aid than on matters arising from corporate competitive strategies.

“In this, it has been difficult to avoid one-size fits all approaches that failed to discriminate sufficiently between north and south, island and metropole, peripheral and central.”

Dr Sant said that the privatisation of major infrastructural functions, such as in transport and utilities, and now public health, has simply been seen as economically desirable if cast in competitive format. But the social impacts, as well as some economic ones, have not been given sufficient attention.

“Now, the emphasis is also shifting towards state aid considerations with regard to taxation policies. Such policies are still subject to the sovereignty of member states but competition policy is being deployed to oversee and correct for them. One gets the impression in fact that the rules and methods by which this is done are being created on the hoof, actually on a case by case basis.”

The Maltese MEP said tax flexibility within member states under conditions of full transparency should be considered an integral part of the competitive situation and is vital for the prosperity of smaller member states in the single market.

The report was approved with 445 votes in favour, 104 votes against and 38 abstentions.

You may view Dr Sant’s address on this link:

Maltese Version – “TKUN ĦASRA JEKK IL-POLITIKA TAL-KOMPETIZZJONI TITMEXXA MINN POPULISTI TAT-TAXXA LI QED JIMBOTTAW GĦALL-ARMONIZZAZZJONI”

Il-Kap tad-delegazzjoni Maltija Laburista tal-Parlament Ewropew Alfred Sant qal li tkun ħasra jekk il-politika tal-kompetizzjoni tal-UE tispiċċa titmexxa mill-populisti tat-taxxa li qed jimbottaw għall-armonizzazzjoni tal-politika tat-tassazzjoni u li ma għandhom l-ebda problema jużaw il-politika tal-kompetizzjoni biex jiksbu dan l-għan. Dr Sant indirizza l-Parlament Ewropew bħala ‘Rapporteur’ tal-S&D dwar ir-Rapport Annwali tal-Politika tal-Kompetizzjoni. Huwa qal li dan l-atteġġjament, li apparentement miexi ’l quddiem, jista’ jkun qed iservi biex jaħbi realta` oħra: fi żmien meta l-ekonomiji Ewropej reġgħu sejrin tajjeb, il-klassi tal-ħaddiema u dik tan-nofs u kif ukoll il-pensjonanti mhux qed ikunu ikkompensati għas-sagrifiċċji li kellhom iwettqu fis-snin tal-awsterita`. Dawn mhux se jikkonslaw billi jintqalilhom li fl-interess tal-kompetizzjoni, it-tassazzjoni fi ħdan l-Unjoni għandha tkun armonizzata.

Dr Sant qal li l-politika tal-kompetizzjoni qed tingħata aktar importanza fil-profil tal-UE.

“Wieħed jispera li dan mhux qed iseħħ għal raġunijiet żbaljati.” qal l-Ewroparlamentari Malti.

Dr Sant qal li fil-prinċipju, il-politika tal-kompetizzjoni għandha l-għan li tiżgura li r-regoli tas-suq ħieles japplikaw għall-benefiċċju tal-konsumaturi fi ħdan l-Ewropa kollha. Fil-prattika, minħabba li storikament ir-rwol tal-gvernijiet nazzjonali kien element kruċjali għall-iżvilupp ekonomiku Ewropew, l-enfasi spiss kienet – u għadha – aktar dwar kwistjonijiet relatati ma’ għajnuna tal-Istat milli fuq kwistjonijiet li joħorġu minn strateġiji kompetittivi tal-kumpaniji.

“F’dan kollu, sar diffiċli l-evitar ta’ politika li tlibbes l-istess żarbun lil kulħadd, li ma tiddiskriminax bejn in-nord u s-sud, il-gżejjer u bliet metropolitani, dawk fil-periferija u dawk ċentrali.”

Dr Sant qal li l-ipprivatizzar ta’ infrastruttura importanti, bħal dik fit-trasport u issa anki fis-saħħa pubblika, ġew preżentati bħala investimenti ekonomikament mixtieqa mil-lenti tal-kompetittivita`. L-impatt soċjali, u kif ukoll xi wħud ekonomiċi, ma ngħatawx biżżejjed attenzjoni.

“Issa l-enfażi miexja lejn kunsiderazzjonijiet tal-għajnuna tal-istat dwar politika ta’ tassazzjoni. Politika ta’ dan it-tip għadha taqa’ taħt is-sovranita` tal-istati membri iżda l-politika tal-kompetizzjoni qiegħda tintuża biex tissorveljaha u tikkoreġiha. Wieħed jieħu l-impressjoni li r-regoli u l-metodi li bihom qed iseħħ dan kollu qed jinħolqu bla pjan, kull każ għalih.”

Dr Sant qal li l-flessibilita` fit-tassazzjoni fi ħdan l-istati membri taħt il-kondizzjoni ta’ trasparenza sħiħa, għandha tkun ikkonsidrata bħala parti integra tal-kompetizzjoni u hija meħtieġa għal prosperita` tal-istati membri ż-żgħar fis-suq ħieles.

Ir-rapport kien approvat b’445 vot favur, 104 vot kontra u 38 astensjoni.

Tista’ ssegwi l-intervent ta’ Dr Sant fuq din il-link: