THE TELEGRAPH: Herman Van Rompuy, Europe's first president, is to join forces with the European Commission to push for sweeping new tax raising powers for Brussels.
Within days of taking office in January, the former Belgian prime minister will put his weight behind controversial proposals already floated by the commission's head, José Manuel Barroso, for a new "Euro tax".
He will add credence to Mr Barroso's plans, to be formally tabled in the New Year, by arguing for a Euro-version of a "Tobin Tax" – a levy on financial transactions already floated by Gordon Brown as a solution to the international banking crisis. It would result in a stream of income direct to Brussels coffers, funding budgets that critics say are already rife with waste and overspending.
Mr Van Rompuy, 62, who was appointed to the newly-created £320,000-a-year post at last week's special EU summit, set out his stall on direct Euro-taxes during a private speech at a recent meeting of the Bilderberg group of top politicians, bankers and businessmen. The group officially meets in secret, but when selected details of his remarks leaked out, his office was forced to issue a public statement on his behalf.
"The financing of the welfare state, irrespective of the social reform we implement, will require new resources," he said. "The possibility of financial levies at European level needs to be seriously reviewed."
Mr Barroso, whose commission acts as the European Union's executive arm and civil service, has set out alternative plans for a Euro tax that would involve Brussels taking directly a fixed percentage of VAT and fuel duties. While these taxes already help to fund EU spending – set at £121 billion next year – they are currently gathered by the treasuries of individual nation states, from which varying sums are paid into EU coffers.
A new Euro tax could appear on all shopping and petrol station receipts, showing the amount of VAT or fuel duty creamed off directly to Brussels. Supporters say it would take a fixed proportion of the existing tax revenue rather than increase it overall, and make the cost to taxpayers of running the EU more transparent. Critics argue this could backfire by increasing anti-Brussels sentiment. >>> Bruno Waterfield and Justin Stares in Brussels and Colin Freeman | Sunday, November 22, 2009
Herman Van Rompuy’s sister, a communist/extreme socialist, doesn’t agree with her brother’s politics:
