Archive for the ‘European Union’ Category

Amazon’s fight against $277 million EU tax order kicks off in court on Thursday – Reuters

FILE PHOTO: The logo of Amazon is seen at the company logistics center in Lauwin-Planque, northern France, December 30, 2019. Picture taken December 30, 2019. REUTERS/Pascal Rossignol

BRUSSELS (Reuters) - Amazon (AMZN.O) will on Thursday seek to overturn an EU order to repay about 250 million euros ($277 million) in back taxes to Luxembourg at Europes second-highest court, one of a series of high-profile cases marking the blocs crackdown on unfair tax deals.

The European Commission said in its 2017 ruling that the tax deal, which covered the period from May 2006 to June 2014, meant almost three-quarters of Amazons business went untaxed.

The EU competition watchdog said the Grand Duchy allowed the U.S. online retailer to shift a significant portion of its profits from a subsidiary to a holding company without paying tax, giving the company an unfair advantage.

At issue was the royalty paid by the subsidiary Amazon EU on certain intellectual property rights to Amazon Europe Holding Technologies, a company which the European Union said had no employees, no offices and no business activities.

Amazon said in its filing to the General Court that the EU had not proven its case, which it claims is riddled with legal and factual errors. The hearing in Luxembourg, of case T-318/18, will run to Friday.

The company said the EU ruling also breached principles of legal certainty, because it relied on a flawed reference framework.

It accused EU enforcers of discrimination by using 2017 OECD guidelines for a tax deal agreed with Luxembourg in 2003. In addition, Amazon said the EU has no case as the 10-year limitation period has expired.

Apple (AAPL.O), Fiat Chrysler Automobiles (FCHA.MI) , Starbucks (SBUX.O) and scores of other multinationals have also been caught in the EU crackdown in recent years over their tax deals with countries in the bloc.

Starbucks won its fight in September last year after the General Court backed its arguments while Fiat Chrysler lost. Apple is still waiting for a ruling.

Reporting by Foo Yun Chee; Editing by Jan Harvey

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Amazon's fight against $277 million EU tax order kicks off in court on Thursday - Reuters

Europe has turned its back on the Mediterranean but there is still hope – The Guardian

What if the future of freedom were being written in the Maghreb? What if we looked to the other side of the Mediterranean to find the most exciting collective adventures, to discern the outline of a new form of democracy where people questioned violence, economic power and the development of society in a new way?

Between 2011 and 2019, popular uprisings changed the destinies of first Tunisia and then Algeria. I was on Avenue Bourguiba when the Jasmine revolution began, and I have some extraordinary memories of those moments shared with the Tunisian people. I covered Zine al-Abidine Ben Alis Tunisia as a journalist from 2008 to 2011, and I had the feeling at the time that this country and its youth were dying. Young people were being driven to illegal emigration and suicide by the nations ills: police brutality, the economic crisis, endemic corruption and mass unemployment. Tunisia had been undermined so deeply and systematically by its ruling regime that it was hard to see a way out of the situation. In Algeria, similar causes produced comparable effects. And there was a sense of amazement there too, among observers and the protesters. As the Algerian journalist and author Kamel Daoud put it: We had forgotten that we were a people, and in the street, we were united once again, amid joy and laughter.

In Europe, nobody had forecast the rise of these popular movements because it was nearly 10 years since the European Union has stopped taking an interest in the Maghreb. When I was a student, the Mediterranean was still talked about as a sphere of influence on Europe. Remember Turkey presenting its arguments for joining the club of 27 member states? Even Morocco did not exclude the possibility of gradually joining the union. Theres a story that King Hassan II hired teams of Moroccan and Spanish engineers to make a presentation at a meeting with Jacques Delors, who was president of the European Commission at the time for his plan to build a bridge that would connect Africa to the Old Continent. In 2008, the French president Nicolas Sarkozy wanted to pursue this dream of bringing together the peoples of the north and south by launching the Union for the Mediterranean. But no solid union could ever be forged with a band of dictators such as Muammar Gaddafi, Bashar al-Assad and Hosni Mubarak.

I am from the Maghreb; I am from the Mediterranean. My attachment to Europe was built across that sea. For me, mare nostrum was not a border and not yet a cemetery; it was the outline of a community. In Homer, the Mediterranean is hygra keleutha, the liquid road, a space of transition and sharing. It is our common heritage. Odysseus made stopovers on the coast of Africa just as he did in the Greek islands. When I first visited Spain, Portugal and Italy, I was struck by this feeling of familiarity. So how can we explain Europes current inability to face that sea? How can we understand the way it has deliberately turned its back on the Mediterranean, when this southward tropism is one of the most fortunate aspects of our continent? We have lost the sea and betrayed that essential part of our identity. How devastating to see the youth of the Maghreb and Africa turning away from the continent that has rejected them and let them down.

The Austrian author Stefan Zweig devoted a large part of his critical work to the European question. In an article published before the second world war, he writes that a Russian exile once told him: In the old days, a man had only a body and a soul. Now, he needs a passport too, otherwise he is not treated like a man. And Zweig, who saw the European continent sink into the horrors of fascism and genocide, adds: The first visible manifestation of our centurys moral epidemic was xenophobia: the hatred or, at the very least, the fear of the other. Everywhere, people defended themselves against the foreigner, they excluded and separated him. All those humiliations that before had been reserved for criminals were now inflicted on travellers. And still today, the question of migration is fundamental, central, because the future of our continent will be decided in terms of our capacity to welcome and also to think about the Other.

The European Union, built on the ruins of the second world war, was intended to be an incarnation of pacifism and the virtues of dialogue. Whether through Schengen or Erasmus, it championed the ground-breaking idea of a future based on reducing borders and encouraging the circulation of people, products and ideas. It is easy to forget this now, but when the European project was first conceived by its founding fathers, it was profoundly innovative, even subversive. Turning its back on a warlike, dog-eat-dog vision of the world, the European Union was designed to promote mutual assistance and cooperation. It seems such a sad waste that this democratic ideal is now considered by some to be a sort of outdated, rancid utopianism, while nationalist speeches are cheered, and walls are being built on our doorsteps.

But the EU also bears some responsibility for what has happened to it. During the past 10 years, the union has too often renounced its own moral principles, providing fuel for nationalist and populist arguments. Europes leaders have demonstrated shameful cynicism by constantly prioritising finance and economics over the construction of a genuine European people. The management of the 2008 economic crisis in Greece constituted the EUs first moral failure: by showing its reactionary side, it reduced Europe to a union that was essentially commercial, cold and heartless, embodied by a dominant elite obsessed with profit. Mans indifference to man seemed to become the norm. The second stage in the EUs fall came in 2015, with the migrant crisis. The image of those masses of people fleeing poverty and war and coming up against Europes haughty indifference left a deep wound in the hearts of many of us. Even today, this continent that sees itself as a lighthouse for the world is, in reality, incapable of fighting against the slavery at its doorstep, the death on its shores, the poverty within its borders.

Faced with populists promising simple answers and playing on peoples fears, the EU must cast aside its fear of what it is and boldly proclaim that utopia is possible. It must reduce inequality, improve the democratic process, fight climate change, and welcome refugees fleeing wars and poverty. To be European is to believe that we are, at once, diverse and united, that the Other is different but equal. That cultures are not irreconcilable; that we are capable of building a dialogue and a friendship by seeking out what we have in common. The universalism of the Enlightenment must be at the heart of the European project.

It was probably in Europe that the awareness of what is today called globalisation was first forged. Zweig wrote that, after the first world war, the intellectuals of the Old Continent were both enthusiastic and anxious about the fact that the destiny of different peoples was now so closely linked: Humanity, as it spread across the earth, became more intimately interconnected, and today it is shaken by a fever, the entire cosmos shivering with dread. European integration was driven by that awareness: the great problems of tomorrow will not be resolved at a national scale. Only by combining our efforts will we find solutions to the challenges of the future, and the best example of this is obviously the planets ecological ultimatum.

It seems to me that Europe must look southward, with interest, respect and passion. It must look to those shores, too, in order to move on to the next chapter in its history; to cease defining itself as an old colonising power, and to find strength in its egalitarian values. To stop wallowing in nostalgia, and instead pour its energy into inventing a better future. Europe must no longer be defined by Christianity or by exclusive, irreconcilable national identities, but must return to the Greek matrix that unites the two sides of mare nostrum. In Greek, the term crisis comes from crineo, which means to choose. Thats where Europe is now: at a crossroads. And our common future will depend on which path we take next, which moral and philosophical choice we make.

Translated from French by Sam Taylor. Lela Slimani represents France in the Hay Festival Europa28 project. An anthology, Europa28: Writing by Women on the Future of Europe is published by Comma.

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Europe has turned its back on the Mediterranean but there is still hope - The Guardian

EU needs nuclear energy to achieve its industrial goals – EURACTIV

The European Commissions upcoming Industrial Strategy aims to help Europes industry tackle a series of challenges and prepare for the future. One important element will be ensuring that industry has access to a secure supply of low-carbon energy at a competitive price.

This is where nuclear energy comes in. Not only is it low-carbon, it is also flexible, dispatchable and cost-effective. The success of the EU industrial strategy and the European Green Deal will depend on the EUs ability to achieve climate neutrality whilst maintaining its competitiveness, including growth, jobs, and technological leadership.

Nuclear energy can contribute to making this a reality.

But for this to happen, EU decision-makers need to develop an ambitious vision for nuclear in Europe and recognise it for the benefits it can provide to accompany Europes energy transition and incentivize more investments in the sector.

This ambitious vision is a notion that the fathers of the European Union had already in mind while developing the Euratom Treaty which provides the legal basis that EU institutions need to follow.

One of the key priorities of the upcoming European industrial strategy should be to ensure that European industry has a non-stop access to a stable supply of low-carbon and affordable energy. This is crucial for maintaining Europes competitiveness. Nuclear energy is vital in this respect as it can help:

The important role of nuclear energy has been recently emphasised by many international organisations such as the IPCC, IEA or MIT and this should be recognised and reflected in EU policy as well.

Nuclear as one of Europes strategic industries

Not only is nuclear an enabler for other industries, the European nuclear industry itself contributes significantly to the EUs economy. It is a strategic sector with high-level of expertise (according to a recent Deloitte report, 47% jobs are high-skilled) and given its EU-based industrial capacity it has a positive impact on European, national and local economic and social development.

The nuclear industry helps maintain an extensive community of experts in various high-level fields: fuel lifecycle (front and back-end), regulators, licensees, supply chain companies (maintenance operators, support services, manufacturing, engineering, etc.), research centres, etc.

But the European nuclear industry provides not only electricity, but also medical isotopes and other applications for industry and agriculture.

The European nuclear industry currently sustains around 1 million jobs in the EU and generates around 450 billion in GDP. As underlined in the European Commissions Clean Planet for All long-term vision, the 2050 nuclear capacity will remain around current levels 120 GW.

Achieving this will require constructing many new nuclear reactors which will in turn benefit the European economy and in particular the countries and regions, where these new reactors are located.

What needs to be done?

In 2019, senior representatives from across the European nuclear industry outlined in a manifesto what needs to be done in order to achieve a decarbonised European power sector by 2050, whilst at the same time maintaining growth and jobs.

These nuclear leaders committed themselves to ensuring security of energy supply by delivering the required volume of nuclear capacity on time and at a competitive cost.

Maintaining a qualified nuclear supply industry is essential in this regard: industry, regulators, and lawmakers will need to cooperate to ensure that we have enough young people coming into the industry with the right skills.

Standardisation and harmonization will play a key role in this process and the European nuclear industry is already working on developing concrete solutions to optimise the supply chain.

Significant support to R&D and innovation as well as increase funding for research into both current and future nuclear technologies such as SMRs, is also key to prepare for the future, develop new applications and breakthrough designs and technologies.

EU decision-makers must also take steps to support the nuclear sectors important role within the EU economy. This includes a stable EU policy framework, a reform of the electricity and carbon markets, and a policy framework which encourages investment in high-CAPEX, low-carbon technologies.

This will provide investor-certainty and access to different funding mechanisms. In addition, the European industrial strategy should develop an ambitious vision for nuclear in Europe, which would support nuclear itself but also trigger far-reaching and ambitious EU research projects (beyond ITER), industrial initiatives (e.g. SMR) and investment in beyond-power nuclear applications.

The European nuclear industry is ready to play its part in maintaining a strong and competitive European industry. The question is to what extent EU decision-makers will recognise nuclear energys role as the backbone of a 2050 carbon-free Europe together with renewables.

Link:
EU needs nuclear energy to achieve its industrial goals - EURACTIV

Entry into force of the EU-Kazakhstan Enhanced Partnership and Co-operation Agreement – EU Reporter – EU Reporter

On 1 March, the European Union-Kazakhstan Enhanced Partnership and Cooperation Agreement, now ratified by all the EU member states and the European Parliament, entered into force. This represents an important milestone in more than 25 years of EU-Kazakhstan relations.

High Representative of the European Union for Foreign Affairs and Security Policy/Vice President of the European Commission Josep Borrell, said: Since Kazakhstan became the first country in Central Asia to sign an Enhanced Partnership and Co-operation Agreement with the European Union, the breadth and depth of our relationship has progressed immeasurably. The European Union is the countrys biggest trade and investment partner, while Kazakhstan is by far the EUs largest trade partner in Central Asia. What is more, we have invested heavily in strengthening governance, supporting justice, social and economic reforms. We have also increased the number of Kazakh students coming to study and experience Europe through the Erasmus+ programme. With the Agreement now entering into force, we can fully reap its benefits from joint climate action, to clean energy, sustainable modernization, to increasing connectivity. We are turning the page and beginning an exciting new chapter.

Find more information on the Delegation of the European Union to Kazakhstanwebsite. Thefull press releaseand afactsheet on the Agreementare available online.

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Entry into force of the EU-Kazakhstan Enhanced Partnership and Co-operation Agreement - EU Reporter - EU Reporter

Alitalia Loan Under Investigation From The European Union – Simple Flying

News surfaced on Friday that the European Union is investigating a 400 million loan from the Italian government to its national airline, Alitalia. This is due to allegations that the loan breaches rules surrounding state aid. The European Commission will assess whether or not the loan is considered state aid and if it is in compliance with EU rules.

According to Skift, the European Commission (EC) said in a statement that its investigation will seek to find out of the loan granted to Alitalia constitutes state aid and whether it complies with the rules on state aid to companies in difficulty. The Financial Times reports additional statements from the EC:

[The investigation] will provide clarity to Italy and the company as well as interested buyersThe commissions role under the EU Treaty is to help ensure a level playing field in the EUs Single Market to the benefit of European consumers and businesses,

The Financial Times also reports that the EU is already investigating the legality of a 2017 900 million loan from the Italian government. The investigation began in April 2018.

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Italys minister for economic development, Stefano Patuanelli, told the newspaper late last year that the 900 million in loans from the Italian government did not count as state aid. The reasoning was that the loans would only last until the airline was sold. We are not providing [state] aid to the [Alitalia airline], but for the management of a sale process that unfortunately has taken a very long time, Mr Patuanelli said.

According to the BBC, the rule restricting state aid is in place to prevent the distortion market competition. The aid can take various forms including direct cash grants or indirect aid such as preferential borrowing rates or tax credits.

EU rules allow its member-governments to provide state aid only with approval from the European Commission. However, exceptions to the rules exist. For example, governments are allowed to provide aid for broadband infrastructure without prior approval. Furthermore, aid worth less than 200,000 over three years is exempt.

Looking at the rules set out by the EU around state aid, and more importantly the intent of the rule, it would appear that the loans provided to Alitalia do indeed distort market competition. However, the Italian government would be able to defend itself with the continued assertion that the loans are only in place until a buyer can be found. This is something the airline has desperately been trying to attain for months now.

Do you think this loan violates the policies set out by the European Union? Does it distort market competition? Let us know what you think by leaving a comment!

Simple Flying has contacted Alitalia for an official statement or comment. However, at the time of publishing, no response has been received.

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Alitalia Loan Under Investigation From The European Union - Simple Flying