Dawn Primarolo to chair EU Committee on harmful tax competition

Financial Secretary Dawn Primarolo was today appointed the first chairman of the new EU Code of Conduct Group.

Speaking after the first meeting of the Group in Brussels, Ms Primarolo said:

"I am delighted that the Member States have appointed me to this important role. Together we have a great opportunity to strengthen the single market and improve the working of the European economy."

Chancellor Gordon Brown, welcoming the appointment, said:

"Dawn Primarolo's appointment will put the UK at the heart of an important Community debate."

The Group will assess the business taxation regimes of Member States and examine the extent to which they contain elements that represent harmful tax competition. The objectives are to reduce distortions in the single market, prevent damage to the tax base and excessive losses of tax revenues and to develop more employment-friendly tax structures. The Group will meet regularly and report back to Ecofin council meetings.

Notes for editors

The Ecofin Council meeting on 1 December 1997 held a wide-ranging debate on the need for coordinated action at a European-wide level to tackle harmful tax competition. Following the debate, a voluntary Code of Conduct on business taxation was agreed, and it was decided that a group should be set up to assess the tax measures that fall within the scope of the Code. The Code, which is not legally binding, will ensure that, for the first time when considering domestic direct tax policies, Member States will take
into account the effect those measures will have on their partners. At the same time the Code recognises national competence in business taxation.