Sant breaks ranks with Maltese MEPs to abstain on Commission work programme

Former Prime Minister Alfred Sant has abstained on the final vote of a resolution for the 2017 Commission work programme submitted jointly by the socialists, popular parties and liberals, while voting against references requesting further tax harmonisation at EU level.

The Joint Resolution passed with 417 votes in favour, 209 against and 78 abstentions. All the other Maltese MEPs voted in favour of the resolution.

Sant also abstained on references for the involvement of NATO in the context of the EU's common security and defence policy.

Sant told the European Parliament that peripheral regions and islands within the European Union had to safeguard fair tax competition, now that European regulations curtailed their competitivness.

“I can only repeat what I said last year regarding the Commission Work Programme 2015. It rightly defines as an important objective the elimination of rampant tax evasion and avoidance, as well as aggressive tax planning by multinational corporations. Measures that, in a transparent and consistent manner, seek to attain this goal in the context of a level playing field are desirable.”

Sant said it was a serious problem when measures contemplated prepare the ground for tax harmonisation. “This goes against the interest of peripheral regions and islands having limited endowments. When adopting European regulations they have among others, removed protective trade barriers, adopted consumption taxes that follow continental models, phased out state aid, adopted stringent budgetary rules, abandoned exchange rate autonomy. This has severely curtailed their competitivity. The only element that remains for them to safeguard is fair tax competition.”

The MEP said the resolution endorsed a common consolidated tax base, a financial transaction tax and a minimum effective tax rate on corporations. “In current circumstances, these proposals amount to a first substantial step towards harmonisation. They are hugely detrimental to the development prospects of islands and regions at the periphery of the Union. I cannot approve them.”