Social Europe: Tax havens: patience is running out

 That’s no surprise. The OECD had certainly sought to legitimise its claim to speak for all by creating an ‘inclusive framework’ involving developing countries. However, of the 137 nations sitting around the negotiating table, only the G7—those home to the major multinationals and their lobbying teams—had a voice. As a result, the solutions advocated by the OECD would hardly limit financial flows to tax havens and the scarce resources recovered would mainly benefit rich countries. [...]

Estimating the loss of resources caused by corporate and individual tax abuse country by country, and the consequences for healthcare spending, this research is chilling. Globally, these diversions correspond to 9.2 per cent of health budgets, equivalent to the salaries of 34 million nurses. The impact is even more devastating in developing countries, where the shortfall represents 52.4 per cent of health spending. [...]

Of course, there is strong opposition within the EU itself, for one simple reason: if we readily point the finger at the small islands of the Caribbean, it is to make people forget that Europe has its own tax havens. The departing UK, together with its network of Overseas Territories and Crown Dependencies—often referred to as its ‘spider’s web’—is responsible for 29 per cent of the $245 billion the world loses to corporate tax abuse every year, according to The State of Tax Justice. And we have further examples inside the EU. Every year, for example, the Netherlands steals the equivalent of $10 billion from its EU neighbours. And it is not alone: Luxembourg, Ireland, Cyprus and Malta do the same.

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Social Europe: An effective corporation-tax system for the EU

The European social contract is broken. The largest companies are no longer contributing adequately to the provision of the public services and infrastructure they use. If the European project and single market are to survive and thrive, there has to be an effective EU taxation system. The small amounts paid in tax by some of the most profitable companies in the world are undermining citizens’ belief in government, in politicians and in Europe. [...]

The European Union has made feasible tax-reform proposals and the Organisation for Economic Co-operation and Development has developed corporate-tax reforms for the world, through its ‘base-erosion and profit-shifting’ process. Both are making progress but this is far too slow in terms of agreement among states. Europe needs fair taxation of companies now, when revenue is so urgently needed. [...]

It is not the rate of tax which is the issue but the actual tax paid. The EU should move from seeking ‘harmonised’ tax rates to co-ordinated rates within bands—say between 15 and 25 per cent. This would allow peripheral and poorer countries to set lower nominal rates if they wished. What is needed is to close gaps between nominal and effective rates and eliminate tax breaks. [...]

Europe should establish a well-funded European tax agency, ‘Eurotax’, with wide powers of investigation into tax evasion and avoidance by wealthy individuals, companies and criminals. Eurotax would implement tax policy, including the co-ordination of tax assessments and collection. With a single market, the EU needs one tax body to oversee taxation in this globalised world.

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UnHerd: Enoch Powell reconsidered

 “Throughout his political career,” Corthorn notes, “Powell grappled with what is arguably still the central issue in British foreign policy: the precise nature of the UK’s role in the world.” Yet, as a result of what Corthorn characterises as “a deeply polarized, and politicized, historiography”, Powell’s potential contribution to today’s debate has been minimised, a failing his excellent new book seeks to rectify, recentring Powell’s turbulent career as “part of a long-running and wide-ranging public debate over the ‘decline’ of the British nation”. [...]

The loss of India and Britain’s consequent diminished place in the world became the central pole of Powell’s worldview; the bloodshed of Partition fuelled his later fears both of mass immigration and of civil war in Northern Ireland, convincing him that “communalism and democracy, as the experience of India demonstrates, are incompatible”. His entire political career after 1947 would be devoted to defining, with an obsessive clarity not far from madness, the nature of British sovereignty in this new post-imperial world. [...]

Praising de Gaulle for pulling France out of NATO, Powell foreshadowed the French strongman’s modern heir Macron in eyeing Russia as the counterweight to preserve his own nation’s strategic autonomy, asserting that “historically the existence of Russia has been the ultimate guarantee of the survival of Britain as an independent nation… When in the last decades of the twentieth century necessity restores an understanding between Britain and Russia, the entente will not be cordiale; but entente it will still be…” As Corthorn notes laconically, at the height of the Cold War, “Powell’s argument for an alliance with the Soviet Union was a radical one to make. [...]

As for Brexit, Powell’s eventual, fierce opposition to the European Union would please many of the Conservative Party’s Brexiteers, yet his ridiculing of the Global Britain “delusions and deceits of a vanished Empire and Commonwealth” and his total and absolute hatred of the United States would have few takers in the modern Tory party. Perhaps it is here, as a foreign policy realist, that Powell’s uncompromising vision speaks most clearly to modern concerns.

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New Statesman: The fatal delusions of Boris Johnson

In retrospect, it is telling that Johnson first mentioned the virus in public as an aside in a grandiose speech celebrating Brexit. He was speaking in Greenwich, London, on 3 February. The venue was chosen for its historic resonances: his theme was that the maritime greatness that enabled the creation of a mercantilist empire in the 18th century was about to be reborn. This was the vision of what ­Johnson had previously called the new Golden Age, the Global ­Britain that will replace half a century of EU membership.[...]

What is striking here is that Brexit is not a distraction from the emerging pandemic. It is the other way around: Johnson was worried that the coronavirus might take attention away from the thrilling prospect of a liberated Britain, shrugging off its boring, bespectacled Euro-normality, reassuming its native-born superpowers and saving the world. (Johnson’s Superman analogy does work in one respect: the coronavirus would be the Kryptonite of this triumphal moment, the mysterious, other-worldly substance that would render the Brexit state impotent.) [...]

Why the difference? It was not that the Irish government was particularly brilliant, merely that it was not blinded by an obsession that there should be some special Irish way of facing the threat. It grasped the meaning of the “pan” in pandemic: all, every, whole. This was something happening to humanity, not to individual nations. But in London, the government (and to some extent its scientific advisers) seemed to be reading a book called Why Be Normal When You Can Be British? [...]

Thus, to begin with, the extreme reluctance to go into lockdown. Even when Italy imposed drastic restrictions on movement, there was a widespread belief in political and scientific circles in England that the virus was somehow going to behave differently on the sceptered isle. As Paul Hunter, a professor in medicine at the University of East Anglia, put it on 9 March: “Personally, I do not think that such a large-scale lockdown would be appropriate in the UK.” Hovering around this belief was a notion that the naturally libertarian ­British people, unlike the more docile nations abroad, would not obey the rules.

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Slate: In Europe, Green Is the New Red

When Green parties throughout Europe saw unprecedented success in European Parliament elections last year, it was clear that voters were responding to concerns about the climate crisis as well as a loss of confidence in the big mainstream parties that have dominated politics for decades. But EU elections are often favorable for protest votes and fringe parties, and there were questions about whether the enthusiasm would last. “People were already starting to flirt with us. Now they have had a one-night stand. Whether this is a permanent relationship is totally unclear,” Sven Giegold, a leading German Green MEP told me last June. Judging from recent election results, the infatuation hasn’t faded. In fact, in several countries the greens appear on the verge of eclipsing old-school socialist or social-democratic parties as the main electoral voice of the left. [...]

The coalition deal was approved by an overwhelming 93 percent of the Green Party’s membership. Writing in the American socialist magazine Jacobin, activist Teresa Petrik suggests we shouldn’t be surprised by this. “Some Green voters might identify as left-wing,” she writes, “Yet most of the party’s base are highly educated and financially well off. They are not the people who will suffer from continued welfare cuts and the neoliberal policies the new government is pushing forward.”

Austria’s strange new government is more troubling evidence of just how easily environmental concerns can be wedded to a hard-line anti-immigration agenda. But on the other hand, it’s also a sign that the climate issue has become so mainstream in Europe that even the bona fide right-wingers are embracing it. The U.S. is not quite there yet.

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Politico: U.N. vote deals Trudeau embarrassing defeat on world stage

Despite being a founding U.N. member and part of the G-7 and G-20, Canada’s size and history once again counted for little: the government of Conservative Prime Minister Stephen Harper was defeated by Portugal in 2010, even as the former colonial power was in the midst of the humiliating EU bailout. [...]

With Norway, Ireland and Canada all taking similar approaches to such core global issues as climate change, multilateralism and peacekeeping, Canada’s relatively late entry into the race — as well as stumbles like Trudeau’s brownface scandal — hurt Canada’s ability to stand apart and make its case.[...]

The Canadian government shelled out roughly $1.7 million and employed 13 full-time campaign staff, compared to Norway’s $2.8 million budget and Ireland on $1 million. Ireland splurged on U2 and Riverdance tickets for diplomats, and Canada on Céline Dion tickets, BBC reported, in addition to giveaways such as greeting cards, chocolates and Canada-branded facemasks.

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Social Europe: A federal budget for European citzens

In 1973, in the midst of an economic crisis, the EU founding father Jean Monnet proposed a ‘provisional European government’ to the French government—converting the European summits into a council, with regular quarterly meetings. He also proposed that that council adopt further reforms: direct election of the parliament, to give European citizens a voice, and abolition of the right of member-state veto, to enable the council to function democratically.

Developments since have shown that the council has become ‘permanent’ to all intents and purposes. Indeed, during the 2008 financial crisis, it acted improperly as the ‘non-democratic government of the union’. [...]

The second side-effect would concern the European tax system. The need to implement a serious system of own resources would be an opportunity to resolve the current scandal of unfair tax competition. By definition, there is tax competition between states if one gains what another loses. In a resolution in March 2019, the European Parliament asked the Council de facto to include the Netherlands, Ireland, Luxembourg, Malta and Cyprus in the list of countries classified as tax havens. The council naturally ignored this request.

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EURACTIV: Six EU countries join call for 100% renewable energy scenario

But none of the eight options, which range from business-as-usual to net-zero emission cuts, included a scenario based on 100% renewable energies. And only two of them achieve climate neutrality, which in the meantime was chosen by EU heads of states and government as the preferred option. [...]

Last week, the Commission tabled a landmark Climate Law, aiming to make the EU’s 2050 climate neutrality objective “irreversible” by turning it into a legally-binding obligation on all 27 member states. [...]

The detailed impact assessment was requested by EU member states as a prerequisite for raising the EU’s 2030 target to 50-55% cuts in greenhouse gas emissions, up from 40% currently. [...]

Researchers from Finland’s Lappeenranta University of Technology (LUT) recently unveiled their own model of a 100% system, which would involve 20 independent European regions or “islands” connected together through a “super grid”.

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UnHerd: Why is Sinn Féin rising?

Ever since Ireland gained independence in 1922, every Irish Government has been led by either Fianna Fáil or Fine Gael (or one of its antecedents). The two parties emerged from a split over the Anglo-Irish Treaty that paved the way to independence. The side that became Fine Gael accepted the Treaty, and the side that became Fianna Fáil, led by Éamon de Valera, rejected it. The pro-Treaty side, under Michael Collins, won the subsequent civil war but Fianna Fáil soon emerged as the strongest and most popular party in the new Irish state. [...]

But as time has gone on, and the Civil War recedes ever more into the distance, the historical differences between Fianna Fáil and Fine Gael seem less and less important and increasingly they are seen as two sides of the same coin. [...]

Irish politics is also unusual in that immigration has barely raised its head as an issue, despite the fact that Ireland actually has a higher proportion of non-nationals living here than almost any other EU country, including Britain. Both the media and the mainstream parties absolutely refuse to permit a debate on the matter, but most of the immigrants to date are from other EU countries and fit in well for the most part. [...]

But every scenario is bound to strengthen Sinn Féin further. A second confidence-and-supply deal makes Sinn Féin the de facto opposition party, and if there is an outright coalition between the two parties, Sinn Féin becomes the official opposition. One way or another, the party of Gerry Adams and Martin McGuinness will benefit and the next time an election is called it will be running far more candidates and could potentially become the biggest party in the state for the first time since independence almost a century ago. It’s also possible that, if either main parties dumps their leader after the election, they choose a successor willing to cross that line and enter a coalition government with Sinn Fein.

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The Guardian: Meet the Healy-Raes: the rural Irish populists who have never lost an election

But the Healy-Raes, who hold three county council seats and two seats in parliament, tend to have the last laugh. They are savvy populists who have not lost an election since entering politics four decades ago – a remarkable record given the fact they run as independents.

They appear poised for fresh victories in the general election on 8 February – and could end up in government. The more Dublin snickers, it seems, the better for the Healy-Raes, who alchemise metropolitan disdain into votes at home. [...]

The family has elevated patronage and personal connection – venerable traditions in Irish politics – to high art. “The first commandment in Healy-Rae land is: thou shalt not turn off thy mobile phone,” Donal Hickey, a local journalist, wrote in a biography of the family.

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Europe Elects: Sinn Féin | SF | UK, Parliament Election 2019

This is the YouTube service of Europe Elects. Poll aggregation and election analysis for countries in the European Union. Europe Elects introduces the main political parties ahead of the 12 December 2019 parliament election in the UK.

BBC4 In Our Time: The Treaty of Limerick

Melvyn Bragg and guests discuss the 1691 peace treaty that ended the Williamite War in Ireland, between supporters of the deposed King James II and the forces of William III and his allies. It followed the battles at Aughrim and the Boyne and sieges at Limerick, and led to the disbanding of the Jacobite army in Ireland, with troops free to follow James to France for his Irish Brigade. The Catholic landed gentry were guaranteed rights on condition of swearing loyalty to William and Mary yet, while some Protestants thought the terms too lenient, it was said the victors broke those terms before the ink was dry.

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TLDR News: Europe's Top 10 Richest and Poorest Places - Data Dive (Sep 11, 2018)

The is a lot of difference between rich and poor areas all over the world, and Europe is no exception. We run down the richest and poorest areas in Northern Europe and discuss the issues which arise from income inequality in Europe.

The Guardian: Arlene Foster signals DUP shift on Northern Ireland border issue

In a break with previous rhetoric where she has strongly opposed treating the region differently to the rest of the UK, Foster said the final deal would have to recognise Northern Ireland’s unique historical and geographical position and the fact it will be the UK’s only land border with the EU.

Asked by reporters if it was possible to see Northern Ireland-only solutions that would not affect the constitutional link with Great Britain, she replied: “Well I hope so.” [...]

She made clear that her idea of an acceptable Northern Ireland-only solution was different to mooted proposals for a Northern Ireland-only backstop, which she said “would bring about customs [checks] between Great Britain and Northern Ireland and that is unconstitutional and undemocratic”. [...]

Echoing words of the party’s chief whip Sir Jeffrey Donaldson earlier this week, she said the solution lay in a joint letter she co-authored with the late leader of Sinn Féin, Martin McGuinness, in August 2016, a document rarely referred to by the DUP in the past two years.

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euronews: Trust in EU at its highest in five years, new poll shows

At 44%, trust in the EU is at its highest level since 2014 and ten percentage points ahead of trust in national governments and parliament, Eurobarometer said.

Among other key findings, 61% of Europeans are optimistic about the future of the EU.

Meanwhile, 55% of Europeans say they are satisfied with the way democracy works in the EU, the highest score since 2004.

Support for the euro reached a record high 76%.

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TLDR News: What Johnson's Cabinet Reshuffle Mean For Brexit

On Thursday night, Boris Johnson selected his new cabinet in the biggest reshuffle in recent memory. Cabinet selections really indicate what kind of people the Prime Minister wants to surround themselves with, what kind of strategies they will be using. So in this video, we will be discussing who Johnson chose, and what this might indicate about his Brexit plans.

Reuters: G20 agrees to push ahead with rules on corporate tax targeting tech giants

The new rules mean higher tax burdens for large multi-national firms, but will also make it more difficult for countries like Ireland to attract foreign direct investment with the promise of ultra-low corporate tax rates. [...]

Big internet companies say they follow tax rules but have paid little tax in Europe, typically by channeling sales via countries such as Ireland and Luxembourg, which have light-touch tax regimes.[...]

If companies are still able to find a way to book profits in low tax or offshore havens, countries could then apply a global minimum tax rate to be agreed under the second pillar. [...]

Britain and France have been the most vocal about the need for a so-called “digital tax,” arguing that corporate tax codes are no longer fair in the age of the large-scale provision of services and the sale of consumer data over the Internet.

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statista: Atlantic Overfishing: Europe's Worst Offenders

A report by the New Economics Foundation has named Europe's worst offenders for overfishing in the northeast Atlantic. Every year, European fisheries ministers agree on a total allowable catch (TAC) for commercial fish stocks. This is generally determined using advice from scientific bodies who provide information on the state of stocks and recommended maximum catch levels.

In 2019, Sweden exceeded its TAC by 52.4 percent - equating to 17,369 tonnes. The United Kingdom and Ireland join Sweden at the top of the list of the worst offenders for overfishing, exceeding their quotas by 24.3 and 21.7 percent, respectively.

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Social Europe: Tackling insecure work in Europe—a critical moment

Europe has a growing crisis of insecure work. Just before Christmas, the European Commission triumphantly announced that employment in the EU had reached record levels in the latter part of 2018, with over 239 million people in work. Good news indeed, but much less prominence was given to recognition that the number of hours worked is still lower than in 2008, before the crisis began. So perhaps there is more employment, but spread more thinly—because too many people are in insecure jobs with too few hours to guarantee a decent living.[...]

Consequently, in January 2018, the commission published proposals for a Transparent and Predictable Working Conditions Directive. It was weaker than the European Trade Union Confederation hoped but, nonetheless, includes very important protections for workers. For example, employers must supply written details of the employment relationship on the first day of work. This means that seasonal-agricultural, domestic, on-demand, platform and other precarious workers will get stronger legal rights. The draft goes further in proposing measures to ensure that online platforms are held accountable as employers. [...]

The ETUC has watched the rise in precarious working conditions in Europe—platform working, zero-hours contracts, bogus self-employment and so on—with deep concern. Research in the UK found that young people on zero-hours contracts, for example, were far more likely to report mental and physical health problems than their counterparts in stable jobs. A study by the University of Limerick in Ireland warned that people on non-guaranteed hours could become ‘trapped in a cycle of poverty which strengthens employers’ control’, generating a fear of being penalised if they raised grievances about working conditions. In response, the Irish government has taken steps to prohibit the use of zero-hours contracts, unless the employer can show a genuine business need. Guaranteeing transparent and predictable working conditions would have wide-ranging benefits, in terms of workers’ health, work-life balance and employee retention.

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Social Europe: Tackling poverty and inequality in Europe

National poverty rates in the EU vary between over 25 per cent in Romania and less than 10 per cent in the Czech Republic. For Germany, the figure is 16.5 per cent (2016). The official Eurostat figure for the EU as a whole is 17.3 per cent, which puts poverty in the EU only slightly higher than the level in Germany. However, if a proper EU-wide poverty threshold is calculated, the figure comes out significantly higher. [...]

The poverty rate has decreased slightly since 2015, with the number of people at risk of poverty in the EU falling by around 4 million. This fall is equivalent to just under one percentage point. Any progress may be due to relatively strong growth, especially in the poorer countries. [...]

(a) Intra-country inequality is increased by welfare cuts and labour-market deregulation, technological change and globalisation. All these causes can be addressed by government policy. For example, in Germany the introduction of a minimum wage has halted the rise in inequality observable since 1995. In the EU, a stricter Posted Workers Directive could curb wage competition. In his most recently published book, the late Tony Atkinson presented numerous suggestions for how intra-country inequality could be reduced, covering all categories of cause. Unfortunately, the EU’s economic-policy advice and the requirements it has imposed on indebted countries have instead tended to increase inequality.

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