Greece offered to compensate taxes on wealth loss of EU Brexit

© RIA Novosti / Alexei Vitvitskiy fotobanka in the EU. Archival photoGreece offered to compensate taxes on wealth loss of EU Brexit© RIA Novosti / Alexei Vitvitskiy the image Bank

A British exit from the European Union means a reduction of the overall budget, and make up the loss possible by the introduction of a new tax on wealth, not additional taxation of the people, said Prime Minister of Greece Alexis Tsipras reporters after an informal EU summit in Brussels.

According to him, on the one hand, Brexit means a reduction in the budget, on the other hand, the EU now faces several new challenges: the implementation of social rights, expanded guarantee program youth response to the refugee crisis and immigration crisis, the deepening of research, the development of the digital single market, security, protection of external borders.

«Either we must significantly increase the budget or to accept a reduction in social status of the EU, what we’re against… Given that the UK leaves the EU and I would not want to further burden the taxpayers, the solution is the ability to find new resources. We need to find new resources by taxation of wealth, not the taxpayers. Based on this, I presented some ideas and proposals concerning the tax on financial transactions, so called Tobin tax, the taxation of large Internet companies, the common tax base. The establishment of a European tax on work will be more effective than national taxes, and there will be additional taxation of European citizens», — said Tsipras.

He expressed the hope that the discussion will be completed before the European elections, and stated that the EU should take steps for democratization and for strengthening the social character of Europe, to make it more attractive to its citizens.

The leaders of 27 EU countries that remain in the Union after Brexit, at the informal summit on 23 February discussed the future multi-year financial plan of the EU (MFF) for the period after 2020. Considering MFF compiled annual budgets of the EU. The size of the current seven-year MFF is about 1 trillion euros and the annual budgets of the Union is around 150 billion euros.

These budgets largely consists of contributions of the member countries of the European Union, the level of which is calculated, including the size of the gross national income (GNI).

In the EU there are different proposals for the reform of multi-year financial plan: discussed the increase in contributions to the EU in the budget of the Union, the European Commission and the European Parliament propose to increase the volume of its spending and find new sources of income. It is also proposed the creation of a reserve budget.

The European Commission will present its final proposals for the next MFF by the beginning of may this year. Then will begin the discussion of these proposals in the European Parliament and the EU Council.