Mr. Alain Lamassoure:

I will answer the first question and then Mr. Tang will take over. The Deputy is correct when she says we must not forecast only on the tax treatments if we want to ensure a level playing field in the European market but must also take into account the various grants and other financial assistance given in some member states and regions to investment, be it by multinationals or small and medium-sized enterprises, SMEs. This part of the problem is overseen and controlled very closely by the European Commission. For instance, France has made a step of devolution of power to the regions but their autonomy is relatively limited. It can happen that the French Government may give grants to big companies or take a public share in them. It is, however, under the close scrutiny of the Commission and France has been condemned several times by the Commissioner in charge of competition, when these aids were deemed unfair. There are other cases to be looked at closely. For instance, the Spanish Basque region was particularly generous towards foreign investments, both by tax privileges and in granting aids. It was condemned by the European Commission and now it is over. When we were discussing with our colleagues the content of CCCTB, our German colleagues explained to us that they do not need a super-deductibility on research because in Germany, they encourage research not by tax incentive but by grants. The Deputy is right and makes a good case. We must ensure that we take on board also the expenditure side. However, thus far, the expenditure side has been under very close scrutiny by the European institutions or regulators, which has not been the case for the tax side.