Schulz says Luxembourg tax situation 'not new' to him

Parliament president Martin Schulz and Slovenian prime minister Miro Cerar have raised concerns over the impact of the 'Luxleaks' revelations.

By Jon Benton

Jon Benton is Political Engagement Manager at The Parliament Magazine

12 Nov 2014

On Tuesday, Schulz and Cerar, as part of the Slovenian leader's visit to the EU institutions, addressed a press conference in the European parliament.

Fielding questions about tax evasion, particularly the 'Luxleaks' scandal and its impact on the EU, Schulz was less than supportive of the Juncker commission, making it clear that the scandal was of no surprise to him.

"The fight against tax avoidance, against tax fraud and especially against really unfair conference between member states of the EU, concerning taxes and taxation [it is] one of the key elements for a process in which we regain trust of citizens we have lost"

The German MEP said, "the structure of taxation and of the banking system in Luxembourg was for me not new", adding that, "I was one of the candidates for the presidency of the European commission; […] I was the candidate that raised most the issue of tax conference between member states".

He also made it clear that it is parliament's responsibility to, "fight against tax avoidance, against tax fraud and especially against really unfair conference between member states of the EU, concerning taxes and taxation [it is] one of the key elements for a process in which we regain trust of citizens we have lost".

Prime minister Cerar was equally critical of the situation, saying that he felt the revelations would "weaken Juncker's and the commission's position".

Cerar - who became prime minister of Slovenia as a result of elections July triggered by the resignation of his predecessor, Alenka Bratušek, in May - and Schulz met to discuss a range of issues including economic matters, but also areas such as relations with Russia and European political stability.

According to Schulz, the pair also discussed the Juncker commission's investment plan, and its potential to bring growth back to Europe.

"I really want to bring political stability to Slovenia, as the prime minister I will do everything I can"

Schulz commented that the, "European commission, with the €300bn investment programme, should come out as soon as possible with concrete suggestions, because what we need is growth".

He also said, "We know growth leads to employment and that’s the second most important part, we need employment in the European Union and this is to conclude the circle of what creates most of stability".

Cerar echoed Schulz's comments regarding the commission's investment programme, saying, "We are also very eager to see this €300bn package that we all expect from the commission. We all need investments in Europe, and we have several ideas in Slovenia and we look forward to it starting soon".

The Slovenian prime minister, however, was also keen to clarify the political and economic position of his government, highlighting that it would be different to that of his predecessors.

He said, "I really want to bring political stability to Slovenia, as the prime minister I will do everything I can".

He also discussed his governments' privatisation campaign and efforts to resolve disputes with trade unions, describing an "ongoing dialogue with social partners in Slovenia, and the need for all to contribute to the goals of financial and economic recovery".

Schulz was also questioned regarding his opinion on the election process of the Slovenian commission candidates, following suggestions that Cerar had accused the S&D group of interfering in the process.

Schulz said, "the European parliament respected the proposal of the Slovenian government and I think the candidate was fairly treated in the parliament. It was neither prejudice nor an advantage given to the candidate; therefore I think both sides stuck to their institutional responsibilities".

Read the most recent articles written by Jon Benton - MEPs condemn plans for European football super league