INTER-GOVERNMENTAL CONFERENCE: TROUBLE WITH QUALIFIED MAJORITY VOTING FOR TAXATION.

Taxation.The Presidency opened the session with a report mooting the aim of extending qualified majority voting to certain tax provisions. From the outset, seven Member States (Ireland, the United Kingdom, Denmark, Sweden, Austria, Spain, Portugal and Luxembourg) made it clear that taxation as a whole should continue to be a matter for unanimous approval. Italy, Belgium and Austria point in particular to the likelihood of creating fresh tax havens come enlargement. Germany is keeping an open mind, as is Finland. France withheld its reply pending internal negotiations.Specific subjects referred to in the report were considered, but after one or two preliminary remarks, the participants failed to make any outstanding contributions. On the subject of co-ordination, linked to the smooth functioning of the Single Market, Greece said it was in favour of measures designed to combat double taxation. Finland took the opposite view. On the fight against fraud and tax evasion, Denmark called for better administrative co-operation. When debating the proposal to harmonise tax bases and rates, Finland said it favoured majority voting for setting VAT rates and called for the same procedure to be used for the introduction of eco-taxes. Denmark agreed with this, Greece did not and Spain seemed very wary about the subject. Finland also came out in favour of majority voting for adopting energy taxes, whereas Greece and Spain resisted.Social provisions.A report on extending qualified majority voting to social measures got a better reception, with most Member States backing the plan. The United Kingdom, Ireland and Denmark seemed to be very reluctant about the proposal. The main focus was on measures for implementing Article 42 on the creation of freedom of movement for workers, thereby entitling workers from one Member State working in another one to be entitled to social security benefits. France, Italy, the Netherlands, Portugal, Greece, Luxembourg and Austria are amenable to qualified majority voting in this area, but Ireland, the United Kingdom, Denmark and Spain are not.The environment.A report on extending qualified majority voting to areas covered by Article 175(2) of the Treaty's Title XIX on the environment raised the hackles of Spain, Portugal, and Sweden, but for different and even conflicting reasons. The first two fear having to suffer constraints whilst the latter is concerned there would not be enough of them. On the subject of land planning...