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Parliament rejects European Commission’s proposal for two new European taxes

The national representatives have not supported the introduction, proposed by the European Commission, of two new taxes. At a joint meeting, deputies from the parliamentary Committee on European Affairs and Oversight of European Funds and the Budget and Finance Committee discussed the package of legislative initiatives proposed by the European Commission for the new Multiannual Financial Framework for the 2014-2020 period. The topic is included in the Annual Working Programme on EU Affairs of the National Assembly.


The report prepared by the two committees was discussed in the presence of representatives of the executive branch of power, the non-governmental sector and the business.  The stand of the Bulgarian government with respect to the EC legislative package was presented by the deputy finance minister Ms Boryana Pencheva. Active participants in the debate concerning the EU Multiannual financial framework for the 2014-2020 period were the senior economist of the “Open Society” Institute Georgi Angelov, Desislava Nikolova – chief economist of the Institute for Market Economy and Kamen Kolev – vice-president of the Bulgarian Business Chamber.


Both parliamentary committees’ members praised the EU Multiannual financial framework as a good financial instrument, tuned to the objectives of Europe by 2020. They noticed that the objectives laid down in the framework for expenditures are in conformity with the objectives set by the Bulgarian Government. They stressed that it is important to take into consideration the capacities of Bulgaria, such as they are previewed in the National Program for Reforms in the Republic of Bulgaria for the 2011-2015 period.


Deputies discussed in details the MFF policies of key importance to Bulgaria, such as the expenditures envisaged for development of the Cohesion policy, the Common agricultural policy, the External border control and Illegal immigration management and the Neighborhood and Development policy.

They underscored that the policy aimed at rapprochement should be allocated more funds for the development of basic infrastructure.


In compliance with the larger authority given to the national parliaments by the Lisbon Treaty giving them power to participate in the earliest stages of the EU decision making process, the two committees expressed their stand on the income part of the proposed MFF. They shared the opinion that the proposed reform of the EU tax system by introducing a new levy on financial transactions and a European VAT would lead to an additional tax burden for the citizens and the business in Europe, the consequences of which could trigger a negative response among European taxpayers. The national representatives agreed unanimously that the change of focus from national GPDs to adding new taxes to the EU budget will not take into account the real economic development of the member states. In addition the concern is that such taxes will contribute to the loss of competitive advantages for the EU financial institutions and markets. Bulgaria being an example, due to its underdeveloped markets of bonds and shares that will additionally suffer of a decreased access of the business to financing.


This position of the Bulgarian parliament will be presented and discussed with the European Commission and the European Parliament.

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