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ESBA PRESS RELEASE

Embargo: Wednesday 4th June 2003

EUROPEAN CONVENTION:

SMALL BUSINESSES CALL

FOR FAIR TAX COMPETITION IN EUROPE

Small businesses and Self-employed in Europe

Want Article III-59 of the European Constitution

to be re-drafted to insert the principle of fair tax competition in the EU

ESBA, the European Small Business Alliance, expresses satisfaction that the attempt to introduce tax harmonisation has been rejected by the Convention’s Praesidium. Nonetheless, the present draft remains unclear as well as the scope for applying either unanimity or qualified majority voting.

ESBA, the European Small Business Alliance, will continue to campaign for promoting the concept of FAIR TAX COMPETITION within the European Union.

ESBA strongly believes the EU has failed to promote a sound policy debate on taxation. It has also failed to involve the small business community, heavily affected both by the complexity and the level of taxation in most Member States.

A certain level of competition is good for all economic spheres, and this includes the role played by public authorities through taxation. The EU remains by far the most taxed area in the world. In spite of constant plans to reform the economy to make it the most competitive one, the overall tax level continues to discourage entrepreneurial initiatives and innovation.

ESBA calls for FAIR TAX COMPETITION to be inserted within the European Constitution with the aim to set up a competitive tax environment to promote innovation and entrepreneurship in Europe.

END

Note to the editor:

1. The European Small Business Alliance was established in 1998 and includes member organisations from: Portugal, France, Austria, Belgium, the United Kingdom, Germany, the Netherlands, Sweden and Gibraltar. ESBA currently gathers over 1.500,000 small business entrepreneurs and is one of the largest organisation based on free/voluntary membership in Europe. ESBA represents entrepreneurs in traditional manufacturing, commerce and services sectors as well as small business entrepreneurs from the new economy. ESBA is a member of WASME, the World Association of Small and Medium-sized Enterprises. More information: http://www.esba-europe.org

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