Case: Policy coherence in general

18-12-2009 ACP-EU JPA Question by MEP Joly on Illicit Financial Flow

The EUs policies on tax has made the taxes incredibly difficult to follow and transparency is hardly in place. Multinational corporations find loop wholes to avoid taxes and secrecies of banks make tax evasion a possibility. Not only are taxes escaping the EU or its member states because of this, but also illicit financial flows from developing countries are a reality. Tax income for developing countries are extremely important for the development, especially in terms of social welfare, security and the protection of human rights in general.

Eva Joly (Greens/EFA) expresses her concerns for these illicit financial flows that are, according to her sources, roughly ten times more than development aid. The incoherence between the development policy and objectives of the EU and their tax policies, are undermining the effectiveness of development efforts in ACP countries. Therefore she asks the Council how they plan on combating tax havens and whether it will be part of the review of the Cotonou Agreement.

For raising her concerns to the council and for her efforts in making EU policies more coherent and fair we acknowledge Eva Joly as a Fair Politician.

Monitor fair: Greens/EFA

Parliamentary Question
30 November 2009
18th JPA Session
Question by Eva Joly (Greens/EFA) to the EU Council

Subject: Illicit financial flow from developing countries

Despite the abundance of natural resources in most of African countries, the majority of the population is relegated to permanent state of material deprivation and debilitating poverty. Tax evasion, tax avoidance, illicit financial flow from these countries is among many other factors, which undermine the sustainable development of Africa. According to a Norwegian report published in June 2001, the illicit financial flow roughly represents ten times more than development aid.

How does the Council plan to fight against tax heaven and illicit financial flow from ACP countries? Is there any discussion to include the fight against tax heaven and illicit financial flow in the mid term review of the Cotonou agreement negotiations?