Cameron: '...A Bad Day For Europe' On Juncker Nomination Cameron: '...A Bad Day For Europe' On Juncker Nomination Cameron: '...A Bad Day For Europe' On Juncker Nomination The Prime Minister says the nomination of Jean-Claude Juncker as President of the European Commission marks a bad day for Europe and stressed his determination for European Union reform. Calls for Juncker to quit over tax avoidance deals: Critics say EU commission chief's position is untenable after revelations he helped firms avoid billions in tax Jean-Claude Juncker yesterday faced calls to resign following damaging claims he helped some of the world’s largest companies avoid paying billions of euros in tax when he was prime minister of Luxembourg. Leaked documents showed how hundreds of sweetheart deals with more than 300 companies including Heinz, Burberry, Dyson and Ikea were signed while the newly appointed European Commission President was in charge. Mr Juncker faces growing anger across Europe because of claims other countries missed out on billions of euros in tax revenues while Luxembourg became one of the world’s richest because of the arrangements. Critics have argued his position is untenable as the Commission, which he now heads, is investigating the tax practices he oversaw during 18 years as the Grand Duchy’s prime minister. It has been claimed that companies used Luxembourg ‘like a magical fairyland’ with webs of internal loans and interest payments to slash tax bills. The firms’ divisions in Luxembourg lent money to their operations in other countries. The interest payments made on these loans reduced the profits in these countries. In some cases it was claimed companies enjoyed tax rates of less than 1 per cent on profits moved into the Grand Duchy. Tory MP Stewart Jackson called for Mr Juncker to resign. He said: ‘His position is untenable. The issue of corporate tax avoidance has been high on the UK agenda because of Amazon, Google and Starbucks. The sweet heart deals of countries such as Luxembourg sit at odds with a Commission President who says that he supports widespread economic and financial reform.’ Scroll down for video Patrick O’Flynn, Ukip’s economics spokesman, said: ‘The EU actually facilitates tax avoidance by enabling multinational corporations to channel earnings through whichever member state they want. ‘Luxembourg was happy to do dirty dealings with the big corporations to maximise its revenues at the cost of tens of billions of pounds that should have ended up in the UK public realm. ‘Juncker has lots of questions to answer. It’s why multinationals are so keen on EU membership but why it is not in the UK’s interest.’ Margaret Hodge, chair of the Commons public accounts committee, said Mr Juncker had ‘presided over the biggest exploitation of European nations in his own little country for decades’. The Labour MP, who has been one of the fiercest critics of tax avoidance by companies such as Starbucks, Google and Amazon, said: ‘I think he should come clean and talk about it, certainly try to explain it. How can we know he’s working in the interest of Europe when as prime minister in Luxembourg he has exploited populations in every European country and elsewhere for decades?’ The respected Bloomberg news agency accused Mr Juncker of ‘making his country rich by picking the pockets of other countries he is now mandated to serve’ in an editorial column. ‘He could best serve the European project by resigning,’ it said. ‘Juncker’s position as the head of the body investigating the tax practices he oversaw as prime minister is a clear conflict of interest.’ In France, Marine Le Pen, leader of the National Front party and Nicolas Dupont-Aignan, of the Arise the Republic party, also called for Mr Juncker to resign. Left-wing MEPs have asked that Mr Juncker is hauled before the European Parliament to explain his role. Mr Juncker has not appeared in public since the documents were published last week and pulled out of one appearance. A spokesman yesterday said: ‘Mr Juncker will choose the moment himself to say what he has to say.’ The European Commission is already investigating Luxembourg’s tax practices with a review of Amazon, and said it could widen this inquiry in the light of new evidence. Before the leaked papers were revealed Mr Juncker said he felt no conflict of interest and would not interfere with the probe by the Commission’s competition department.

• published: 11 Nov 2014
• views: 17