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France rejects EU-wide VAT proposal
Date 15/04/2011 16:01  Author webmaster  Hits 1263  Language Global
15 APR 2011

By Andrew Willis

EUOBSERVER / BRUSSELS - France has rejected a European Commission proposal to create an EU-wide value added tax (VAT), but insists it is still open to the EU having some form of 'own resources'.

The subject was one of several issues discussed by French Prime Minister Francois Fillon during a working lunch with European Commission President Jose Manuel Barroso in Brussels on Thursday (14 April).

Member states are gearing up for a major debate on the EU's next multi-annual budget (post 2013), with the commission set to come forward with draft proposals this June.

Heavy wrangling in previous years has convinced the commission and MEPs that the EU needs to have its own self-funding mechanism, but Fillon said the EU VAT idea was not one that Paris was willing to consider.

"I don't think there will be any question of having a European VAT," he told journalists inside the commission's Berlaymont building as Barroso looked on. "But France is not closed on this idea of own resources for the European budget."

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