Eurotrash - the latest from Brussels
WORKERS, JUNE 2006 ISSUE
Bringing back the dead
German Chancellor Angela Merkel has announced that next year's German Presidency of the European Union would focus on reviving the EU Constitution. She said, "I absolutely want this constitutional treaty...the German government wants the Constitution."Finance for dummies
A LONG-RUNNING scandal has come to light – the city of Strasbourg has been overcharging rent for the European Parliament buildings in the city by as much as 40% since 1979. The inflated rent over the past 25 years is thought to have cost the taxpayer £105 million. Strasbourg is refusing to cooperate with an investigation into the scandal; the case is likely to be referred to the police. The European Central Bank has called again for cuts in public spending across the Eurozone.
Economics – the EU way
A RULING from the European Court of Justice could force the UK Treasury to pay millions in tax rebates to multinational companies. Currently UK companies pay tax on profits and dividends from their overseas subsidiaries. This prevents businesses taking advantage of lower tax rates elsewhere.
The ECJ held that a low tax rate in another EU member state was a legitimate a reason to establish a subsidiary there. British law is contrary to EU law as it allegedly inhibits a company's economic freedom. And EU leaders have warned Bolivia and Venezuela that their nationalisation policies could hurt economic growth, and urged them to open up their markets to promote trade.
...and what we think about the EU
A new Eurobarometer poll shows that 49% of Europeans are in favour of the EU. The EU's greatest supporters are in Luxembourg and the Netherlands where 71% consider membership of the EU a "good thing". However, support for EU membership elsewhere is down, only 36% in Finland, 33% in Britain, 31% in Austria and 29% in Latvia agree.