21.09.2011

Our country will stick to its position against the introduction of new European taxes

Bulgaria does not support the introduction of new taxes as this would result in additional tax burden for citizens and businesses throughout the EU. This is the position of our country on the European Commission's proposal to introduce new own resources - a tax on financial transactions and a new VAT resource. Bulgaria believes that the introduction of a tax on financial transactions at an EU level without having an agreement on its introduction at a global level would jeopardize the competitiveness of financial centres in the Union. At this stage such an agreement does not seem realistic. Our country further believes that the proposal to introduce a common European VAT seizes national functions related to taxation.   

The opinion is part of the prepared by the Ministry of Finance drafts of six Framework Positions on draft legislative acts of the European Commission, the Communication for which was published by the European Commission at the end of June this year. The report containing the positions on the drafts proposed by the Commission was approved today by the Parliamentary Committee on European Affairs and Oversight of the European Funds and was presented by Deputy Minister of Finance Boryana Pencheva.

Bulgaria will support the Commission's proposal for the total amount of the next multiannual financial framework (EUR 1 025 billion or 1.05% of the EU GNI). The draft Regulation on the Multiannual Financial Framework 2014-2020 also proposes an increase by nearly 5% of commitments as compared to the current financial framework until 2013. Our country defines the proposal as ambitious and yet realistic, and supports the increase considering that it would contribute to the implementation of the new priorities of the EU. Bulgaria also supports the proposal for 7-year duration of the next multiannual financial framework, with the European Commission presenting an assessment of the performance of the financial framework in 2016.

Bulgaria will also insist on increasing the cohesion policy funds in order to ensure balanced and sustainable development and to avoid a "two-speed" development in the territory of the EU. Bulgaria still considers key the investment in basic infrastructure. Our country would support the Commission's proposal for a new category of regions with the introduction of the so-called "transitional regions" that have GDP per capita of 75% - 90% of the EU average, which will extend the scope of the cohesion policy to all Member States. This, however, should not be at the expense of any reduction of funds for the least developed regions.

As to the Common Agricultural Policy, part of the Commission's proposals provide for a gradual reduction of the CAP share in the EU budget by 2020, maintenance of the CAP architecture and linking of 30% of direct payments with environmental protection measures (i.e. green investment). Bulgaria is in favour of a fair approach to the allocation of funds among the Member States that will result in bridging the gap between the levels of direct support, thus putting in place a level playing field for competition. Our country supports the introduction of a "greening" component in the direct CAP payments but is of the opinion that the proposed share of 30 per cent is too high and the Member States should be allowed to be flexible in determining this percentage on their own.

The country is expected to support the Commission's proposal for establishing a Connecting Europe Facility. It is proposed that the Facility should finance in advance certain priority projects in the field of transport, energy, information and communication technologies. Bulgaria will be insisting on the fact that this Facility gives priority to connecting Southeast Europe with Central and Western Europe, as well as clarifying the way in which the packages of the individual states will be affected when using Cohesion Fund resources. Our country will focus specifically on the development of an appropriate energy infrastructure to ensure the security and diversification of energy supplies.

Bulgaria will also support the proposal for increasing the rate of funds for implementation of measures financed in the area of internal affairs, including the Migration and Asylum Fund and the Internal Security Fund. Increasing the funds for external border control and management of illegal migration, however, is a priority for our country.

The national positions as approved by the line parliamentary committee respond to the proposals of the Commission for a regulation on the multiannual financial framework 2014-2020; of the Interinstitutional Agreement between EP, the Council and the Commission on cooperation in budgetary issues and sound financial management; a proposal for a Council Decision on the system of own resources of the EU; of Council Regulation on the adoption of measures implementing the system of own resources of the EU, as well as of Council Regulation on the methods and procedures for granting traditional own resources and own resources on the basis of the Gross National Income, as well as on the measures meeting the requirements to pecuniary resources.