Energy and taxes, leaders in conclave

Europe “will be born through concrete achievements which first of all create a de facto solidarity”: perhaps it is too much to refer to Robert Schuman, “father” of integration, and his Declaration of 9 May 1950, on the occasion of the European Council of 22 May. But the “cornerstone” of the process of European construction is once again a key to understanding the European Union of the third millennium. In fact, the summit of the 27 leaders revolves around two concrete issues such as energy and taxes, elements that affect the lives of citizens, of the States and the EU itself, and that today, in the new global scenarios, are increasingly taking a continental dimension continental rather than appearing as prerogatives of national sovereignty.Linearity and consistence. “The goal of this European Council is to set the direction for future work on two issues of crucial importance for the economy and social cohesion: energy and taxation”. Herman Van Rompuy, President of the European Council, has put into writing such convictions in a letter sent on the eve of the summit of EU Heads of State and Government . The summit (whose working program is concentrated in a few hours) will address these two points as part of a series of “thematic discussions” (budget, digital agenda, trade, economic and monetary union, defence, industrial policy, “idea of Europe”…) planned within a year and a half, which are expected to ensure coherence and consistency in “all policies aimed at improving competitiveness, jobs and growth”. The summit will open with the address of the Commission President Barroso, who will illustrate a political process aimed at the completion of the single market for energy, investment, and trade policies towards extra-EU supplier countries. Three questions. Van Rompuy in his letter underlines three priorities in the field of energy that deserve being discussed, conveyed in the form of questions: “To foster EU competitiveness, growth and jobs, what should be done at the level of the EU to further increase energy efficiency? To further develop indigenous resources? And to achieve a more predictable energy policy, as a prerequisite to attract the necessary investments into a modern energy infrastructure?” The other item on the agenda is taxation: “We will then focus on the issue of taxation. Last March we already stressed the need for renewed efforts to improve the efficiency of tax collection and tackle tax evasion. In times of tight budgetary constraints and expenditure cuts, combating tax fraud and tax evasion is more than an issue of tax fairness”. The discussions will also serve to prepare strong and coordinated EU positions in international fora such as the G8, the G20 and the OECD as well as in our relations with international partners”. Energy and taxation: two issues which have always been left out at community level so as not to interfere with the specific field of action at national level are reinterpreted from a European perspective. A guarantee for citizens. “These two main issues to be addressed are critical for the future competitiveness of Europe” and “for the future of the EU”: Lucinda Creighton, Minister of the Irish government holding the six-month presidency of the EU, highlighted the topical relevance of the summit in Brussels. “Ensuring the uninterrupted supply of affordable and sustainable energy is of critical interest to individual citizens, who are affected directly by any interruption or threatened interruption in supply, and the impact of high energy prices. We have to meet our objective of completing the internal energy market. Interconnections – and the modernisation of energy infrastructure generally-require very significant investment”, through structural funds. On May 21, during a debate with MEPs in Strasburg’s assembly Hall Creighton stressed the commitments taken by Member States to improve energy efficiency and step up the use of renewables. Stop to tax evasion. The underlying problem as relates to fiscal policies, Creighton said, is tackling tax evasion, “promoting the automatic exchange of information” between tax authorities and banking system on revenues and capital “across national borders”. The Irish minister highlighted the question of “fair taxation” of income and savings. José Manuel Barroso said: “The Heads of State and Government will discuss energy and taxation, two possible tools to support recovery in Europe”. The Portuguese politician stressed the importance of “restoring the confidence of citizens, which requires fairness” of taxation. “By 2015 we need to reach an exchange of all information related to income and profits from capital movements” governed by the logic of “transparency”.