Frans Vanistendael - Academic Chairman, IBFD, and, Director, European Tax College
Madariaga Paper, Vol. 4, No. 3 (Jan., 2011)
The unprecedented magnitude of the financial crisis and its long-lasting impact on growth and jobs in Europe, has called for an in-depth analysis of the Gordian Knot of the market and policy failures in Europe. As a result, the distribution of competences between the EU and its Member States is under review in terms of eurozone governance and for financial regulation of the EU-27. So far this has not been true for taxation. The persistence of the unanimity rule in the Lisbon Treaty seems to have cemented the existence of a consensus among Finance Ministers for a status quo based on the assumption that reasonable tax competition is a sound way to keep pressure on public expenditure in individual countries. This assumption needs to be seriously questioned in the wake of the financial crisis and of its harmful economic and social fall-out.
This paper is an attempt to address three questions on taxation and fiscal policy that were raised during a one day seminar jointly organised in Brussels, on September 28, 2010 by the Madariaga - College of Europe Foundation and the Committee of the Regions.
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