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Online VAT reform
- EU finance ministers unanimously approved new EU rules on value-added taxation (VAT), including those for e-commerce services. The tax will be applied in the country of consumption, rather than in the country from which services are provided. Luxembourg, whose low-tax regime has attracted many e-commerce companies, lifted its opposition after ministers agreed on a four-year phasing-in of rules starting in 2015.
Italian finance rebuff
- EU finance ministers rejected an Italian plan for centralised supervision of financial markets, opting instead for a gradual strengthening of current arrangements. The UK and Germany led opposition to the initiative, which was a response to the contagion from the sub-prime mortgage crisis. Ministers asked the Commission, member states and watchdogs to come forward with ideas on strengthening supervision.
Northern Rock aid
- The European Commission yesterday (5 December) authorised the UK government’s bail-out of mortgage bank Northern Rock, concluding that the package complied with EU rules on rescue aid. To stem a liquidity crisis at the bank, the Bank of England, announced in September guarantee arrangements for all Northern Rock accounts up to £35,000 (€48,500).
Chemicals cartel
- The Commission announced yesterday fines totalling €243 million for a chemicals cartel. Bayer, Denka, DuPont, Tosoh, ENI and Dow had fixed the price of a type of chloroprene rubber used to make a number of products ranging from condoms to glue. ENI’s fine was increased by 60% as it had been fined previously for similar behaviour. Bayer was exempted from fines for having blown the whistle on the cartel.
Endesa deadline
- The Commission yesterday ordered Spain to scrap conditions imposed on the purchase of energy firm Endesa by Spanish construction company Acciona and Italian utility Enel. Madrid had tried to oblige the buyers to maintain Endesa as an independent company and brand, with headquarters in Spain. Spain has a month to comply.
TV law replaced
- MEPs approved the audiovisual media services directive on Thursday (29 November), paving the way for new rules on advertising and product placement (where products are placed in television programmes for commercial purposes). The rules replace the 1989 television without frontiers directive. Member states have two years to put them into national law.
Internal Market Commissioner Charlie McCreevy will next week (11 December) review cases against countries that are infringing EU gambling rules, in a response to calls to accelerate legal proceedings.
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