European Parliament leaders on February 5 failed to endorse the establishment of a committee of inquiry to investigate EU states’ private tax ruling practices, announcing instead that a vote will be taken in the next full house to set up a more limited special committee to handle the investigation.
The proposal to establish a full committee of inquiry was advanced by The Greens following the “Lux Leaks” scandal last November, where 548 Luxembourg private tax rulings were leaked and published on the Internet, revealing Luxembourg’s role in MNE tax avoidance.
By mid-January, the proposal for a full inquiry had gained the support of 192 lawmakers, more than the required support of 25 percent of members to move forward.
According to EU political leaders, though, the establishment of a committee of inquiry to investigate the private tax ruling practices of member states “was incompatible with the EU Treaty and Parliament’s rules of procedure.” As a result, the leaders opted to propose a more limited special committee to handle the investigation.
Greens party spokesman Sven Giegold blasted the decision, calling it a “cop out” and charging that it was made purely for political reasons. “They simply do not want a proper inquiry and have taken the political decision to oppose it,” Giegold said. He added that an inquiry committee would have had the greatest chance of gaining access to documents from national authorities, a key aspect of any investigation.
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