Alfred Sant has voted against a European Parliament report on the system of Own Resources of the European Union because it includes proposals for new EU-level taxes such as the Financial Transaction Tax and the Common Consolidated Corporate Tax Base.
The revision of the system of own resources of the EU represents the reform of the revenue side of the upcoming Multiannual Financial Framework, which has acquired growing relevance following the diffusion of the Covid-19 virus and its consequences for the EU economy.
The European Parliament is demanding to use all revenues generated by the future implementation of new own resources primarily for the repayment scheme of the Recovery Plan for Europe.
In an explanation of vote, Alfred Sant acknowledged that, in the current economic situation and as it expands its policy horizons, the European Union needs lots more money to spend and a revision of the EU’s current system of own resources is therefore inevitable.
“Proposals reflecting EU objectives acknowledged by all, such as the plastic levy agreed upon at Council level, are extremely fit for purpose. Nevertheless, other proposals in the text have been advanced with a regrettable disregard for the damage they would inflict on the economy of individual Member States”, Alfred Sant stated.
The problem is that mostly, the smaller to smallest Member States are affected.
Were it otherwise, and the interests of the larger states were involved, the
approach would be much more cautious.
In his conclusive remarks, Alfred Sant said that the questions as to whether own
resources is the best response to the EU’s crying need for more funds to carry
out its mission, and as to how new own resources should be identified, merit an
urgent revisit.-
