Mr. Algirdas ?emeta:

Particularly with tax matters, we cannot take a general view on one specific tax because the systems are different in different member states. In some member states a wealth tax could work perfectly to address issues but in others their systems are such that additional tax could work in the opposite way. We must look at the specific situations of member states in terms of their tax systems. Property tax would be treated as part of the wealth taxes. Our analysis shows that the property tax is probably the most growth-friendly tax among all other taxes. As I stated, however, we cannot use the approach that one size fits all. We must look at the specific situation in the member state and recommend ideas to member states on the basis of their concrete situation.

The third question, if I understood correctly, was on sovereignty versus enhanced co-operation and what enhanced co-operation means for sovereignty of the member states? Unlike in most other areas, in taxation the European Union applies the unanimity rule. Here the sovereignty is fully respected. We experienced that with savings taxation. For two years the Commission has been fighting with two member states, Luxembourg and Austria, in order to make progress on this specific file but until they are convinced, we are stuck on an important proposal. Nobody can state that in the area of taxation sovereignty is somehow undermined.

On the procedure of enhanced co-operation, there is this rule in the treaty. The treaty was agreed by unanimity - by all 27 member states. On the other hand, it is also a matter of democracy.

Nobody prohibits Ireland, Germany or France from introducing any tax, provided it respects treaty freedoms and key EU legislation, but when several member states wish to act together, why do others raise the issue of sovereignty? The consequence of not allowing enhanced co-operation is that at least some member states will introduce their own financial transaction taxes and, from the experience of the bank levy, I am sure they will overlap and result in double taxation and other problems. From the perspective of the Single Market, it is preferable for a group of member states to agree on tax policies for Europe's heavily integrated financial sector.