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EU leaders in drive against tax evasion at Brussels summit | EU leaders in drive against tax evasion at Brussels summit |
(about 1 hour later) | |
Austria has joined its EU partners in calling for a crackdown on tax evasion, despite the country's banking secrecy. | Austria has joined its EU partners in calling for a crackdown on tax evasion, despite the country's banking secrecy. |
Austrian Chancellor Werner Faymann said Europe must do more than exchange information about bank accounts. | Austrian Chancellor Werner Faymann said Europe must do more than exchange information about bank accounts. |
European leaders are discussing how to prevent tax evasion by multinational companies and rich executives. | European leaders are discussing how to prevent tax evasion by multinational companies and rich executives. |
As they arrived for the talks in Brussels several leaders stressed the need for tax fairness, saying big earners must not get off lightly. | As they arrived for the talks in Brussels several leaders stressed the need for tax fairness, saying big earners must not get off lightly. |
Some multinationals have taken advantage of a favourable tax regime in the Netherlands, and Dutch Prime Minister Mark Rutte said tax changes must be tackled at a global level. He said he would veto any proposals that were not in his country's interests. | Some multinationals have taken advantage of a favourable tax regime in the Netherlands, and Dutch Prime Minister Mark Rutte said tax changes must be tackled at a global level. He said he would veto any proposals that were not in his country's interests. |
The need for global co-ordination was also underlined by UK Prime Minister David Cameron, who has made tax evasion a key issue to tackle at a G8 summit of industrialised nations next month in Northern Ireland. | The need for global co-ordination was also underlined by UK Prime Minister David Cameron, who has made tax evasion a key issue to tackle at a G8 summit of industrialised nations next month in Northern Ireland. |
Huge losses | Huge losses |
Tax evasion costs EU states 1tn euros ($1.3tn; £0.85tn) a year - more than was spent on healthcare in 2008. | Tax evasion costs EU states 1tn euros ($1.3tn; £0.85tn) a year - more than was spent on healthcare in 2008. |
A European Parliament resolution on Tuesday called on the EU to halve that figure by 2020, by curbing tax loopholes and havens. | A European Parliament resolution on Tuesday called on the EU to halve that figure by 2020, by curbing tax loopholes and havens. |
The MEPs called for a joint EU blacklist of tax havens. Mr Cameron has urged low-tax British overseas territories to sign up to international tax treaties. | The MEPs called for a joint EU blacklist of tax havens. Mr Cameron has urged low-tax British overseas territories to sign up to international tax treaties. |
The European Commission is pressing for automatic exchanges of people's earnings data between tax authorities. | The European Commission is pressing for automatic exchanges of people's earnings data between tax authorities. |
Action against "aggressive tax planning" is also on the agenda - that is, the complex yet legal accounting tricks used by some multinational companies to minimise their tax payments. | Action against "aggressive tax planning" is also on the agenda - that is, the complex yet legal accounting tricks used by some multinational companies to minimise their tax payments. |
Some experts argue that business tax planning also reduces the revenue that developing country governments can collect, for example by shifting declared profits to countries where they are lightly taxed. | Some experts argue that business tax planning also reduces the revenue that developing country governments can collect, for example by shifting declared profits to countries where they are lightly taxed. |
The BBC's economics correspondent Andrew Walker says politicians are keen to show voters that tax systems are fair, after a wave of unpopular budget cuts aimed at reducing deficits. | The BBC's economics correspondent Andrew Walker says politicians are keen to show voters that tax systems are fair, after a wave of unpopular budget cuts aimed at reducing deficits. |
Energy co-operation | Energy co-operation |
The other main theme at the Brussels talks is energy policy - especially the need to improve Europe's energy infrastructure, develop renewables such as solar and wind power and remove barriers to competition. Much of Eastern Europe relies on Russia for gas - and in the past pricing disputes have led to supply shortages in mid-winter. | The other main theme at the Brussels talks is energy policy - especially the need to improve Europe's energy infrastructure, develop renewables such as solar and wind power and remove barriers to competition. Much of Eastern Europe relies on Russia for gas - and in the past pricing disputes have led to supply shortages in mid-winter. |
The Commission is urging EU governments to enact energy legislation that was agreed in 2011, warning that on current trends imports of gas will rise to 80% of the gas consumed in the EU by 2035. | The Commission is urging EU governments to enact energy legislation that was agreed in 2011, warning that on current trends imports of gas will rise to 80% of the gas consumed in the EU by 2035. |
The EU already imports 406bn euros' worth of oil, gas and coal annually - 3.2% of total EU economic output (GDP). | The EU already imports 406bn euros' worth of oil, gas and coal annually - 3.2% of total EU economic output (GDP). |
The fragmentation of Europe's energy market makes it difficult to woo long-term investors willing to commit to multi-billion-euro infrastructure projects. The energy mix varies greatly across Europe, from nuclear-dominated France to coal-dependent Poland. | The fragmentation of Europe's energy market makes it difficult to woo long-term investors willing to commit to multi-billion-euro infrastructure projects. The energy mix varies greatly across Europe, from nuclear-dominated France to coal-dependent Poland. |
But a key goal is to connect Europe's isolated "energy islands" - former Soviet bloc countries like Estonia and Bulgaria - to European grids and storage facilities. | But a key goal is to connect Europe's isolated "energy islands" - former Soviet bloc countries like Estonia and Bulgaria - to European grids and storage facilities. |
The distortions in Europe's energy market mean that Bulgarians - the EU's poorest citizens - pay more for their electricity than consumers in the UK or Germany. | The distortions in Europe's energy market mean that Bulgarians - the EU's poorest citizens - pay more for their electricity than consumers in the UK or Germany. |
In the global economy the energy blockages threaten to put Europe at a serious disadvantage. The gas price index for EU households rose by 45% in 2005-12, compared with 3% in the US, while the figures for electricity were 22% and 8% respectively, the Commission says. | In the global economy the energy blockages threaten to put Europe at a serious disadvantage. The gas price index for EU households rose by 45% in 2005-12, compared with 3% in the US, while the figures for electricity were 22% and 8% respectively, the Commission says. |
Transparency push | Transparency push |
In his summit invitation letter, European Council President Herman Van Rompuy said progress on tax collection and affordable energy was essential to make budget austerity more acceptable to voters. | In his summit invitation letter, European Council President Herman Van Rompuy said progress on tax collection and affordable energy was essential to make budget austerity more acceptable to voters. |
The EU has already agreed to strengthen savings tax agreements with European countries widely regarded as tax havens - Switzerland, Liechtenstein, Monaco, Andorra and San Marino. | The EU has already agreed to strengthen savings tax agreements with European countries widely regarded as tax havens - Switzerland, Liechtenstein, Monaco, Andorra and San Marino. |
There has been widespread anger from ordinary taxpayers over the sophisticated tax avoidance practised by some big corporations in Europe. | There has been widespread anger from ordinary taxpayers over the sophisticated tax avoidance practised by some big corporations in Europe. |
Google, Starbucks and Amazon are among the companies that have faced tough questioning over their tax affairs recently. | Google, Starbucks and Amazon are among the companies that have faced tough questioning over their tax affairs recently. |
And this week Apple came under fire in the US Congress over its low tax payments. | And this week Apple came under fire in the US Congress over its low tax payments. |