In a secret document revealed by the Daily Telegraph, France and Germany have plans for more than just the financial tax, which always sounded like a stepping stone to more control over taxation at a later date. They also plan to control taxation policies on energy and corporation tax.

A confidential Franco-German paper, seen by the Daily Telegraph, reveals that the financial transaction tax is seen in Berlin and Paris as the first step to giving the EU a new power to “coordinate” taxation.

The secret text also links existing European Commission proposals on energy taxation and a common method for calculating corporate tax to the push for new EU powers, heralding a major battle over sovereignty this spring.

“European institutions and member states should accelerate the process of tax co-ordination,” the Franco-German paper argues. “In particular the negotiation of the European Commission proposals on energy tax directive, common consolidated corporate tax base and common system of financial transaction tax should be accelerated.”

The EU plan for common energy taxes means we pay more for transport and energy cost.

EU officials have said that the Franco-German push will give a new lease of life to Brussels for new energy taxes that will set higher minimum road and heating fuel duties based on carbon emissions.

British and other European industries are concerned that the legislation will lead to increases in the level of duty on red diesel, damaging competitiveness during a recession.

 

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