tag:blogger.com,1999:blog-1900616754957029867.post2193302411816492989..comments2022-11-01T12:27:55.569+01:00Comments on Alfred Mifsud: Draghi is now the king of EuropeUnknownnoreply@blogger.comBlogger3125tag:blogger.com,1999:blog-1900616754957029867.post-10185657722969137302011-12-12T16:24:36.264+01:002011-12-12T16:24:36.264+01:00Fiscal harmonisation is a looser arrangement of a ...Fiscal harmonisation is a looser arrangement of a tight fiscal union. <br /><br />In a fiscal union countries would have common minimum tax rates ( as is presently the case with VAT rates) and tightly controlled tax break rules and well as more conformity with indirect taxes - e.g. the opt out to have food and medicine at 0% could not remain possible.<br /><br />In fiscal harmonisation the tax rates must resemble each other but need not be tightly alike and some concessions may still be possible. <br /><br />In both cases fiscal union and fiscal harmonisation would take away one of the main advantages of small countries i.e. the application of a low tax rate to capture business from the bigger audience of the single market. Large countries like Germany and France cannot do so as they would lose substantial tax revenues from their legacy domestic audience. SO Germany and France are keen on enforcing a fiscal union or similar arrangment to take away one of the advantages of smaller economies.Alfred Mifsudnoreply@blogger.comtag:blogger.com,1999:blog-1900616754957029867.post-22746793167284788342011-12-12T16:18:31.401+01:002011-12-12T16:18:31.401+01:00This comment has been removed by a blog administrator.Alfred Mifsudnoreply@blogger.comtag:blogger.com,1999:blog-1900616754957029867.post-42439630931095428662011-12-11T09:19:28.210+01:002011-12-11T09:19:28.210+01:00Can you please explain the difference between fisc...Can you please explain the difference between fiscal union and fiscal harmonization?John Zammitnoreply@blogger.com