EU to consider cutting VAT on green goods after all
Watch me eat my words.
Gordon Brown has got what he wanted on VAT and it's far more than any of us in Brussels expected.
Only a few hours before, people in the commission were saying that he couldn鈥檛 just appear with a new form of words on Day Two of a summit rather than go through the lengthy preparatory meetings.
The final text isn鈥檛 out yet but I understand it will be along the lines of 鈥渢he European Council asks the commission to come forward with legislative proposals to examine whether VAT can play an important role in encouraging the use of energy efficiency goods鈥.
A gloating Downing Street aide made those of us who鈥檇 got it wrong squirm as he pointed out that the letters 鈥淰AT鈥 were in the text twice.
The suggestion is that this is in return for giving the Germans something on 鈥渆nergy intensive industries鈥 but I haven't got the latest on this yet.
I鈥檓 Mark Mardell, the 91热爆's North America editor. These are my reflections on American politics, some thoughts on being a Brit living in the USA, and who knows what else? My 
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Rather begs the question what we have given to the Germans, doesn't it? I feel this piece just shows how crazy the whole idea of the EU is; we can only do one thing we want by sacrificing to let someone else get something they want, all done through back room bargaining. It's so dodgy it's laughable!!! Why not just let the Gernans do what they want (in Germany), and Britain do what Britain wants (in Britain)? That way certain policies and industries (like fishing) wouldn't be sacrificed in these back room shady deals; each country could just do its own thing.
It always bothers me that politicians are allowed to claim that the tax system is a 鈥榬ed line鈥 for states alone and the media never mentions VAT and the admittedly complicated EU involvement. I can remember Norman Lamont putting VAT on domestic fuel and Labour promising to abolish it when they cam to power and then realising they couldn鈥檛 (although in fairness they did reduce it). Similarly the claim that the UK has control of its own borders which requires ignoring free movement of EU citizens.
Seems like Mr Brown reads the comments on your blog too!
Wow! 鈥渢he European Council asks the commission to come forward with legislative proposals to examine whether VAT can play an important role in encouraging the use of energy efficiency goods鈥.
And if the Commission says 'no'?
Isn't this something staggeringly obvious which should have been done a long time ago?
Nothing wrong with being able to eat your own words Mark! Your previous post was particularly enlightening. Combined with the outcome we see in this one, it's good to know there there's more than one way to get something done in that sort of environment 鈥撀燼t least for the leaders of the bigger countries.
As ever, keep up the explanatory work, it's much appreciated!
So perhaps Mr Brown does read your website after all!
So what!
The wording agreed simply invites the Commission to "examine instruments" in the context of its overall VAT proposals which, as they have never been agreed in the Community's entire history, does not promise very much.
Still, Merkel's dismissal of Sarkozy's 'Barcelona Process-Union for the Mediterranean', now consigned to an Annex, is even more striking.
If ever confirmation was needed of Merkel's total domination of the political scene, both in Germany and Europe, the conclusions of this European Council provide it.
The Germans have as usual been ahead of the game for some while regarding energy conservation and good for them.
It hard to see how for a example a Blue Angel compliant domestic gas central heating boiler at 97% energy efficiency can be improved upon.
Such remarkable appliances should indeed have a lower VAT rating to encourage wider European use.
What would be even better, is if he didn't have to go cap in hand to a bunch of unelected crooks for permission to blink.
Why do we pay billions of pounds every year, to be told what to do by a remote, out of touch bunch of failures and crooks?
So, this is some kind of win for Britain is it?
Doesn't it, instead, display the truth- that our government is no longer in Westminster, it is in Brussels? We thus have the undefying sight of our provincial governor going to Brussels cap in hand to ask them to consider his proposals.
This is all the political freedom we have now. We, the people, elect an electoral college, who choose a provincial governor, who is our envoy to our government in Brussels.
As Gaitskell said, "The end of 1000 years of history". And what a whimper that end was, with nobody even admitting it has happened.
What a deal. Average Joe Bloke will have a few extra pounds left in his pocket at the end of the month after paying for the golf cart he will be forced to drive around in and he'll be able to buy a few more pints at the pub while the Eurocrats will still get to buy a shiny new gas guzzling high CO2 output Mercedes, BMW or whatever they fancy every year. We haven't seen a diplomatic coup from Britain like this one since Neville Chamberlain taught Adolf Hitler a thing or two at Munich. Nice going Gordon. You sure showed Brussels Number 10 Downing Street is not to be taken for granted.
VAT taxes on green products will be good in theory, but in reality it will have little chance of succedding.
Why don't we just go ahead and cut the rate of VAT on green goods and let the rest of Europe take forever making a decision?
Don't tell me we can't. Other countries blatantly ignore the EU rules when it's convenient for them to do so.
I'm sure it would upset a few Euro leaders but that would probably help Brown politically in the UK and the environmentalists would love him for taking a stand.
Oh yeah. I've just remembered why not - GB has no courage and can't make a decision without spending months having it reviewed.
Toby;
The reason these decisions are made within the European framework is quite plain. Were each state allowed to set its own policy on the matter, the effectiveness [indeed perhaps the nominal existence] of the single market would be endangered. It's also not a zero sum game.
As an Englishman I'll never be able to understand why my countrymen insist on seeing the EU as an 'us and them' affair, rather than as an extension of domestic politics.
Are you saying, Mark, that pretty soon I'll be paying less for the Green Label than for the Black Label?
Such an incentive would certainly help clean my intestinal environment.
And if on top of that taxes were lower on the amount of greens I make....
[Man can dream, can he?]
"Why don't we just go ahead and cut the rate of VAT on green goods and let the rest of Europe take forever making a decision?"
The point about something like this is that Britain acting alone is really just a drop in the ocean and will have little overall impact if everyone else just continues on in the same old way.
Problems like climate change really need many countries to act together to increase efficiency/reduce carbon emissions etc, so by encouraging ALL consumers in the EU to buy more efficient products, we all will ultimately benefit.
"Why don't we just go ahead and cut the rate of VAT on green goods and let the rest of Europe take forever making a decision?"
The point about something like this is that Britain acting alone is really just a drop in the ocean and will have little overall impact if everyone else just continues on in the same old way.
Problems like climate change really need many countries to act together to increase efficiency/reduce carbon emissions etc, so by encouraging ALL consumers in the EU to buy more efficient products, we all will ultimately benefit.
Ben,
You're right about the problem being so large that all the countries should act together but they're not.
It's just delay after delay, review after review.
Surely with that being the case we could take the opportunity to lead the way and then encourage others to follow where we tread?
On our own it may well do little but if it encouraged others to do the same.....
So the unelected Commission is generously going to "examine" a proposal from the head of our elected government to see if they'll allow him to reduce VAT on certain items.
Has he quite "got what he wanted" yet? Doesn't sound like it. We haven't had the verdict of our *real* government in Brussels.
Nothing illustrates more that this the depths to which we have now sunk as a country, and (in fact, Europe as a whole)as a democracy.
Nevermind the media thinking this is an outcome to be grateful for.
Mark - I'm sorry to say that it appears you're being sucked into the Brussels mindset, where something like this is an 'achievement'. Resist...resist!
FAO Mark Mardell,
Whats the latest on this then? I was pleased when I read your post, and I do remember Brown saying he'd written to the other chancellors of the EU at the time a couple of years back, but it seems he forgot about it until recently as opposed to working on the 'mechanics' like you said.
Anyway, you said you'd find out more about it - so can you update us please?
Keep up the good work!
Alex