Services Directive passed by both chambers, Parliament and Council

This directive will open up the EU's Single Market to most kinds of service-providers so that all will be free to do business in any of the 27 member states. Excluded, so therefore still covered by 27 different national laws, are health care services, audiovisual services, gambling, security services, employment agencies, labour and contract law, social services relating to social housing, childcare, support for families and persons in need. In committee the Services Directive only passed narrowly: Christian-Democrat and Liberal MEPs combined to defeat all Socialist amendments by 20 to 16. The Socialists wanted to further dilute the liberalising proposals. Final step: all that remains is rubber-stamping into national law by 27 national parliaments hopefully without too much extra gold-plating.

Future Tax Harmonisation plans

Over dinner the EU Commissioner for Taxation, Laszlo Kovacs, discussed his plans.

a. The VAT Tax base. There are currently different VAT exemptions in each of the 25 member states (such as zero VAT on children's clothing and on books in the UK). The many variations add considerable burdens to businesses operating across the EU's Single Market. Kovacs will propose harmonising the exemptions as widely as possible in order to create a better Single Market, more useful jobs and fewer government jobs. Of the 25 national governments, 18 have given him cautious approval, but the other 7 are resistant. Of these, three are 'flat tax' states led by Slovakia and two are Baltics who see it as the thin end of a wedge. London and Dublin see it as a threat to their sovereignty but have no detailed arguments against the idea.

Kovacs' tactics will be to press ahead with it, be rebuffed by vetoes from the resistant seven (no doubt including Whitehall), then use the "enhanced cooperation" procedure so that the 18 who agree can move ahead and gain the benefits leaving the seven behind.

b. Registration Taxes on new motorcars. In some EU states it costs nothing to register a new car (Germany and France). In others it is cheap (UK). In Denmark it costs ten thousand pounds to register a new car, and in the Netherlands an extra 24% of the new car's price. Kovacs will propose the abolition of all national car registration taxes, and try to persuade EU states to switch to useful green taxation - such as taxes according to engine size and mileage driven.

Annual EU 2005 accounts

The EU Auditors have refused, for the 12th year, to sign off the Commission's accounts for 2005. The reason, as usual, is because most of the 25 member states (including the UK) refuse to open their books to show how they spent the CAP money which is sent to them from Brussels.

New Security rules at airports - undemocratic ?

You may have seen the new rules for carrying liquids etc onto airplanes.

This is actually a new EU law but it was passed in secret by the Council of Ministers with the Commission's knowledge under what is called 'Comitology' (meaning delegated powers to legislate). Last July the three bodies of the EU signed an agreement that the Parliament had three months to recall and examine any Comitology law. The other two bodies are now claiming that the new rules were attached to an old law passed before July and therefore MEPs cannot question it. So a secret law has been passed without any democratic control. MEPs are challenging this.

Quotes

This week in Strasbourg both the President of Georgia and the Emir of Qatar spoke in the parliament's chamber. The Georgian said "...the EU is a beacon of justice, peace, and prosperity...try to imagine how Europe would look without it...". The Emir said "the EU is the most successful example of regional integration in the whole world...I hope the Arab states can achieve what you have accomplished..."

From information supplied by -

Bill Newton Dunn MEP