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The European Union as tax-haven. The notion of “fiscal competition” in case of the Republic of Malta and Luxemburg

Vol. 3, No. 1, December 2007
Deutsch | français

Alain Deneault, Université du Québec á Montréal

The European Union has the Euro but fiscal policy in terms of tax policy remains for the time being a domain of the member states. This entails not only a situation of fiscal competition, but some of them engage in simple tax-dumping in order to attract (in various cases dubious) foreign investment. Luxemburg and Malta are taken here for examples to highlight the contradiction between principles of law which should govern states and an “offshore sovereignty” seeking precisely to circumvent both of them. This makes necessary a certain number of contortions on behalf of the European Union that become ever less justifiable.