The EU in brief

Commission: combating tax evasion at EU level "Let there be no illusion: tax evaders steal from the pockets of ordinary citizens and deprive Member States of much-needed revenue. If we want fair and efficient tax systems, we must stamp out this activity": On June 27 Algirdas Semeta, Commissioner for taxation, customs, anti-fraud and audit, presented a strategy to improve the fight against tax fraud following the mandate of the European Council of March last, to fight what he considers, along with the Executive, as a theft against states and fellow citizens. The Commission’s proposal range from the enforcement of minimum sanctions for tax crimes, "a cross-border tax identification number", an EU "tax-payer’s charter" and "stronger common measures against tax havens" (on the latter, some Member States, notably Luxembourg and Austria, and others countries bordering with the EU, starting with Switzerland, have already conveyed their doubts). By 2012 the Commission will draw up an Action Plan for the fight on tax evasion, "with specific and concrete measures" and possible new initiative and it will set out an approach to dealing with tax havens. Semeta added: "The political will to intensify the battle is there. Now it is time to translate that into action. As a Union of 27, we have a powerful advantage – strength in numbers. If we play as a team, with a common strategy, we can defeat the fraudsters and evaders, and reclaim vast sums of money that are legitimately due". For the Commission, the "size of the shadow economy is estimated to be nearly one fifth of GDP" (albeit with remarkable differences at national level) representing nearly €2 trillion in total. "Given the globalisation of the economy and technological advances, it is clear that isolated national efforts to overcome this problem will not work. Therefore, the Communication sets out a 3 tier approach aimed at attacking evasion and fraud from every possible angle". Drugs: Europe cannabis consumer and producer "The market share of cannabis herb is increasing across Europe at the expense of cannabis resin". These are the findings of the first comprehensive analysis of Cannabis production and markets in Europe, released by the EU drugs agency (EMCDDA) to mark International day against drug abuse and illicit trafficking (June 26). The report describes a cannabis market in a "continual state of evolution" and how Europe, a major cannabis consumer, is now "an important producer" of this drug. Over 78 million Europeans (15–64 years) have tried cannabis, while around 9 million young Europeans (15–34 years) have used it in the last month. This represents a sizeable market and one that "has greatly evolved" especially if compared to that of the 1960s, when it was the result of importation and it involved only a small portion of the overall population. Notably, the Agency voices concern over the fact that not all cannabis production is the work of organised criminals. Presented in the report are the many categories of cannabis grower found today and the motivations driving them. "One of the most important developments impacting on the modern cannabis market is simply its increase in scale", says EMCDDA Director Wolfgang Götz. "Wherever you live in Europe today, it is likely that not very far away cannabis is being bought or sold". It is not by chance that "Cannabis offences make up the majority of drug offences reported in the EU. And around 700 tonnes of cannabis herb and resin are seized in Europe annually". Another worrying figure highlighted in the report is that all EU countries now report being affected by the domestic cultivation of cannabis, a development "bringing with it consequences in terms of public health and security", Götz pointed out. The two main illegal products deriving from cannabis are herbal cannabis (‘marijuana’) and cannabis resin (‘hashish’). But they may be broken down into numerous sub-types with varying compounds and effects". It is therefore a complex market, as stated in the report. Authorities – whose controls are being increased – are thus called to address an ever greater challenge, which is being addressed by stepping up prevention measures by policy-makers.