LuxLeaks and EULEX: EU’s integrity is at stake!
Two serious testcases for EU’s integrity and credibility
As a reminder: Prime-Minister Juncker was president of the Eurogroup till 2013 and co-architect of the rigid austerity policies that pressed European governments, struggling with low economic growth and high unemployment, to give priority to trim their budget instead of stimulating their economy.
by
N. Peter Kramer
Juncker’s first week as Commission President ended on a bad note. On November 6, his spokesman Schinas declined to comment on the revelation of secret tax deals between 343 international companies (like Ikea, Deutsche Bank, Apple) and Luxembourg, which took place while Juncker was in office as Prime Minister of this tiny EU memberstate. Commissioner Margaret Vestager, he said, will lead an investigation to the case. Referring to the awkward situation into which this puts Vestager (Juncker is her ‘superior’!), the European Parliament called not only for an external investigation but also asked Juncker to speak directly to the EP to clarify his involvement in these tax-avoidance practices. ‘The credibility of Juncker is on the line’, Socialist Group leader Pitella stated. Whilst hinting to Juncker’s pledge in the EP, on June 15, that enforcing tax fairness rules would be one of the main targets of the new European Commission under his Presidency. The Socialist also mentioned that tax evasion and tax fraud are costing European governments and taxpayers €1000 billion a year. As a reminder: Prime-Minister Juncker was President of the Eurogroup untill 2013 and co-architect of the rigid austerity policies that pressed European governments, struggling with low economic growth and high unemployment, to give priority to trim their budget instead of stimulating their economy.
On November 4, EU High Representative Federica Mogherini announced she will name an independent legal expert to look into accusations of corruption regarding EULEX, the EU mission in Kosovo. The legal expert will be tasked with investigating accusations of corruption of the EULEX judges and prosecutors. The corruption scandal erupted on 27 October when Kosovo newspaper Koha Ditore disclosed compromising information on the mission. Top Eulex officials took bribes from Kosovo gangsters to block prosecutions; colluded with criminal suspects and squashed internal Eulex probes. The EP Committee on Foreign Affairs (AFET) was quick to respond, welcoming Mogherini’s decision, but reiterating that “that it is of utmost importance to urgently shed light on all the allegations of corruption and on the internal investigations that have been carried out in secret immediately.” A comment based on AFET’s exchange of views on the matter with high-ranked Eurocrats, EU Foreign Service Civilian Operations Commander Deane and the Director for Western Balkans Gentilini. The two Eurocrats annoyed MEP’s by refusing arrogantly to give proper details on the corruption scandal.
Two serious testcases for EU’s integrity and credibility. You never know…