Edition: International | Greek
MENU

Home » EU Actually

LuxLeaks and EULEX: EU’s integrity is at stake!

Two serious testcases for EU’s integrity and credibility

By: N. Peter Kramer - Posted: Tuesday, November 11, 2014

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.
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… 

READ ALSO

EU Actually

European Parliament challenges member-states with an additional budget increase of 10 percent

N. Peter KramerBy: N. Peter Kramer

In his weekly column, N. Peter Kramer writes how the EP opposes Commission’s proposal to cut back on traditional programmes such as agriculture and cohesion

Europe

The EU–India Deal Is Done. Africa Must Be Next

The EU–India Deal Is Done. Africa Must Be Next

The EU-India FTA deal showed Brussels can move when the stakes are high; Africa is the real test of whether Europe can protect its economic security in a more fractured world.

Business

Where Romania can build excellence: the sources of future competitiveness

Where Romania can build excellence: the sources of future competitiveness

Romania has been, for most of its recent history, a story of potential deferred. The standard account of Romanian competitiveness, to the extent one exists in international business literature, is a cost story: cheap labor, low corporate taxes, a large domestic market for Central and Eastern European standards.

MARKET INDICES

Powered by Investing.com
All contents © Copyright EMG Strategic Consulting Ltd. 1997-2026. All Rights Reserved   |   Home Page  |   Disclaimer  |   Website by Theratron