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SID on president José Manuel Durão Barroso's State of the Union Address 2011 speech in Strasbourg

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SID on president José Manuel Durão Barroso's State of the Union Address 2011 speech in Strasbourg



Wednesday 28 September 2011 is a day to be remembered when president José Manuel Durão Barroso's State of the Union Address 2011 speech in Strasbourg touched on the sensitive subject of tax dodgers in the EU. It went as follows:
[... I am very proud to say that today, the Commission adopted a proposal for the Financial Transaction Tax. Today I am putting before you a very important text that if implemented may generate a revenue of above € 55 billion per year. Some people will ask "Why?". Why? It is a question of fairness. If our farmers, if our workers, if all the sectors of the economy from industry to agriculture to services, if they all pay a contribution to the society also the banking sector should make a contribution to the society....]

We in SID wish to applaud Mr Barroso for the above statements and we would also like to keep him to his words.

We are mostly pleased with this part of his speech because it appears that he must have finally heard the voices of €1000 generation in Europe (references: a, b, c, d), the voice of UKUNCUT, FRUNCUT, IRLUNCUT, NLUNCUT, EU uncut and other similar associations in Europe and beyond (USUNCUT, Canada uncut, Australia uncut, We are change) .

We think he and a part of the political elite in Europe unlike their colleagues in the north America have finally realized that the status quo of protecting bankers and big corporations and continuing with Neoliberalist policies can no longer continue as before. That is to say "...Neoliberalism, whereby a relative handful of private interests are permitted to control as much as possible of social life in order to maximize their personal profit...", is no longer sustainable in the current financial crisis. The neoliberal ideology is the belief in the supremacy of "free" markets (read here: de-regulations, simplifications, tax dodging, free from any responsibility towards the society as a whole) to drive and govern human affairs.

Professor Stiglitz states: [...Economists long ago tried to justify the vast inequalities that seemed so troubling in the mid-19th century—inequalities that are but a pale shadow of what we are seeing in America (, we also add in Europe too,) today. The justification they came up with was called “marginal-productivity theory.” In a nutshell, this theory associated higher incomes with higher productivity and a greater contribution to society. It is a theory that has always been cherished by the rich. Evidence for its validity, however, remains thin...]

Joseph Stiglitz, a Nobel prize winner in economics with a brilliant career in academia who served for four years in President Clinton's Council of Economic Advisors and then three years as chief economist and senior vice president of the World Bank, criticised the way leaders disregard his advise . He states: "...The theories that I (and others) helped develop explained why unfettered markets often not only do not lead to social justice, but do not even produce efficient outcomes. Interestingly, there has been no intellectual challenge to the refutation of Adam Smith’s invisible hand: individuals and firms, in the pursuit of their self-interest, are not necessarily, or in general, led as if by an invisible hand, to economic efficiency..."

Joseph Stiglitz writes about his time at the World Bank: "Decisions were made on the basis of what seemed a curious blend of ideology and bad economics, dogma that sometimes seemed to be thinly veiling special interests ... Open, frank discussion was discouraged--there was no room for it."

But the time has arrived for everyone including corporations and bankers to pay their dues to society. Honest politicians, if they can be found, can no longer ignore so many cries of the young people for economic justice. "...At their most eloquent, proponents of neoliberalism sound as if they are doing poor people, the environment, and everybody else a tremendous service as they enact policies on the behalf of the wealthy few...".

Once again we agree with you, Mr president, on this part of your speech: "...In the last three years, Member States - I should say taxpayers - have granted aid and provided guarantees of € 4.6 trillion to the financial sector. It is time for the financial sector to make a contribution back to society. That is why I am very proud to say that today, the Commission adopted a proposal for the Financial Transaction Tax...". But we beleive you could do more by also going after tax dodgers.

Tax evasion by big corporations and bankers should no longer be tolerated.

But when governments allow tax dodgers to go Scot-free, they send a very loud wrong signal to the citizens that despite the rhetoric we are actually not all in this financial crises together. There are those who see themselves much above the rest of us and are in no way willing to contribute or share the burdens with the rest of us. This politics of us and them is no-longer sustainable.

We have witnessed the following cases in the media. The case of Vodafone where UK government's HM Revenue & Customs was forced to chase Vodafone up for taxes due. The case of U2 Bono that took his millions and put them in Netherlands instead of Ireland in order to pay less tax. The case of Sir Richard Charles Nicholas Branson who owns over 500 companies where he relocated part of his Virgin empire to Switzerland in order not to pay his taxes. The case of Sir Philip Green who owns: BHS, Topshop, Burton, Dorothy Perkins, Miss Selfridges etc avoiding paying his taxes. The case of Barclays Bank which was forced to admit it paid just £113m in UK corporation tax in 2009 – a year when it rang up a record £11.6bn of profits. But we also have Lloyds Bank that faced allegations of tax evasion. In another episode we hear the German , French and UK governments going after Swiss banks trying to find the names of Tax dodgers.

The big German corporations have been making use of Lichtenstein as a tax haven. Like Switzerland, Lichtenstein has laws that give substantial protections to people who bank there. As a result, it is one of the few countries that has more corporations registered than citizens, and has become known as one of Europe’s premiere tax shelters.

But scandal after scandal the Europeans no longer believe in the system anymore. They see right through the rotten clutter ("Robert Ménard : les sociétés du Cac 40 et les impôts (20/12/10)" )and take up the streets to demonstrate and demand for justice. No amount of dirt slinging by certain politicians will be sufficient then to calm their anger. (References: e, f, g, h, i, j, k )

Now according to UKUNCUT, UK government's HM Revenue & Customs should recover at least a whopping £95 Billion (the Guardian article estimates £80 Billion) in taxes each year in the UK alone.

Bearing in mind that the state of tax dodging by the rich and mighty in the other 26 EU member state countries is no better than in the UK, we can at the very least assume an annual recovery of at least €200 Billion across EU would certainly be possible if the EU institutions were not so hell bent on simplification, de-regulations and cutting costs in public civil services and shooting for ever expanding privatisations.

As a result we in SID estimate the figure of €55 Billion recovery of taxes in Europe by president Barroso to be a real understatement.

HSBC OVER £2 BILLION TAX AVOIDANCE
Massive Tax Evasion Scandal in GermanyHundreds of wealthy Germans investigated for tax-fraud
Vodafon £6 BILLION Tax avoidance
Tesco £100 Million tax avoidance
Sir Philip Green who ownes: BHS, Topshop, Burton, Dorothy Perkins, Miss Selfridges £300 Million in tax dodging
RBSUK citizens have bailed RBS out for a figure of £45 Billion
La Société Générale: 1,2Mds€ d'impôts impayés en 2010. LVMH et Bernard Arnaud: 700m€ d'impôts impayés en 2010. la BNP Paribas: 1,9Mds€ d'impôts impayés en 2010. Total support to the banking sector in the UK alone has been £1000 Billion
Grandes entreprises, Filiales, Paradis fiscaux La CGT sur la fraude de l'évasion fiscale dans les grandes entreprises en france
BOOTS Only paid £14 M of its real tax of £100M
LLOYDS, BARCLAYS, NATWEST, other banks £25 BILLON in taxes not paid each year


"...Growing corrpution throughout the world is largely the result of the rapid privatisation of public enterprises. Multinationals, supported by Western governments and their agencies, are engaging in corruption on a vast scale in North and South alike. Donor governments and multilateral agencies such as the World Bank and International Monetary Fund frequently put forward ‘good governance’ agendas to combat corruption, but their other actions send different signals about where their priorites lie..."

Consequently, we consider it unwise for the Commissioner for Human Resources to cut 5% of our jobs and cut our remunerations and benefits when president Barosso mentions "...Right now we also need to act to help the 80 million Europeans at risk of poverty...". Does the Commissioner for Human ressources wish to add another 2000 people plus to those 80 Millions with his new proposal of Reform of Staff Regulations?

Thus we invite president Barosso, now that he has made such a speech, to come forward and sign up to our petition to stop the proposed job cuts in the EU institutions now that he sees he can recover at least €55 Billion from the tax dodgers across Europe.

Mr president, you acknowledged in your speech the importance of education: "… In a competitive world we must be also well-educated with skills to face these new challenges. We must innovate. And we must act in a sustainable way..." . In the UK , a member state country of EU, the cost of university entrance fee has trippled to £9000 per student. This is certainly not going to encourage young people to go for further education. The prohibiting costs stops them from doing so. Does European Commission foresee funds at least to encourage the students to continue their further education? Current measures by DG HR to reduce or stop education allowance to children of Officials in Luxembourg for example is not helping towards your goal.

Another part of president Barroso's speech went "...To guarantee these fundamental values in Europe, I believe we need to boost the quality of social dialogue at European level. The renewal of Europe can only succeed with the input and the ownership of all the social partners – of trade unions, of workers, of businesses, civil society in general..." .
SID once again agrees with him. But we wish to point out that his own administration is blocking us out of the social dialogue in the Commission.

Finally, we take up the quotation of professor Noam Chomsky from his book "Media Control" and re-state it here to finish.
"…The issue is weather we want to live in a free society or weather we want to live under what amounts to a form of self imposed totalitarianism, with the bewildered herd marginalized, directed elsewhere, terrified, screaming patriotic slogans, fearing for their lives and admiring with awe the leader who saved them from destruction, while the educated masses goose-step on command and repeat the slogans they're supposed to repeat and the society deteriorates at home. We end up as serving as mercenary enforcer state, hoping the others are to pay us to smash up the world…".

Joseph Stiglitz and Noam Chomsky


References: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47



S olidarité avec ceux qui doivent travailler pour vivre
I ndépendance envers ceux qui n'ont pas besoin de travailler pour vivre
D émocratie appliquée à toutes les décisions prises par groupe d'adultes et responsables

SID - Solidarité, Indépendance, Démocratie est un syndicat indépendant qui défend tous les employés de toutes les Instutions de l'UE (Je souhaite adhérer au SID…)

Created by: admin last modification: Monday 01 of December, 2014 [09:56:05 UTC] by thedune

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