10Principles4Treaty 9

From Noeuconstitution

9. RACE TO THE TOP IN SOCIAL RIGHTS AND TAXATION

In a region like the EU with economies deeply integrated through decades of liberalisation (of trade, finance and investment), member states are presently engaging in a race to the bottom in vital areas like taxation and social policy. To counter this, it is important that countermeasures can be taken at the EU-level, and that a race to the top is facilitated by specific provisions authorized by a new Treaty. The European Attacs propose:

• Measures to combat tax evasion and tax competition must be facilitated. Ambitious minimum standards should be agreed on the EU-level particularly as regards taxation of corporate and capital income.
• The flawed social policy of the EU must be replaced by a transparent, enforceable set of ambitious social minimum standards and rights.

These regulations must take into account the differences of economic capabilities, e.g. through “corridors”, which means setting higher standards for richer member states and lower standards for poorer member states. Such rules must be implemented in such a way that they do not preclude higher standards in any member state. If several member states wish to implement, for example, a comprehensive social policy or adopt a set of higher labour standards than can be agreed in the EU as a whole, the former can decide to sign an agreement of cooperation on the issues in question.