EU takes Greece to court over tax breaks

[Green_Lantern]

Source: BBC

The European Commission says it will take Greece to the EU's top court to recover state aid, which it says violated EU single market rules.

Greece has failed to comply with a 2008 order to claw back state aid granted illegally to hundreds of firms through tax exemptions, the commission says.


The EU Competition Commissioner, Joaquin Almunia, said: "The recovery of illegal aid is about restoring a level playing field in the single market.

"The commission is determined to take all necessary steps to ensure that member states comply with their recovery obligations."

Read more: http://news.bbc.co.uk/2/hi/europe/8534828.stm

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Greece was stripped of their voting power in the EU so this seems to be taxation without representation.

[Nuclear Unicorn]

1. Why kick a man when he is down...

...when you can garotte him.

[HeresyLives]

2. Good, thump the hell out of them.

Penalties have to be severe so this doesn't happen again.

[Green_Lantern]

3. Greece shouldn't have to give a dime to the EU..

Without having a vote in the EU.

[HeresyLives]

4. Greece has had a vote all along.

However they lied and cheated on this one, and put at risk a union that's been over half a century in the making.

Now they either pay up, or get tossed.

[Green_Lantern]

5. Greece was stripped of its vote recently..

Because it wouldn't take EU aid to decrease its deficit and instead tried to fix it themselves by bringing in added govt. revenue. The EU just wants to use its aid to get member states to hand over sovereignty.

[liberation]

7. When exactly and in what exactly was Greece "stripped of their vote?"

Good grief, where did you get your narrative?

[Green_Lantern]

12. it didn't lose its vote completely but..

The EU won't let them be represented at the meeting over this repayment issue.


http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x7734235

[liberation]

13. Well, let me know when in the US the accused in a trial get a seat in the jury judging them

then we can talk about the temerity of those thugs in the EU.

BTW, Greece receives significantly more money from the EU, than they provide to the common fund. Furthermore, their binding votes in all the EU commissions have never been threatened or suspended, the whole "taxation without representation" seems to be a rather disingenuous accusation. And it makes perfect sense for the EU to close tax loopholes from net debtor states.

It seems some people are looking for an excuse to complain no matter how versed they are in the subject at hand...

[Green_Lantern]

19. it's not a criminal trial..

The EU isn't allowing Greece to have any say over whether or not the EU gets to take over Greece's economy in order to manage its deficit.

The council of EU finance ministers said Athens must comply with austerity demands by March 16 or lose control over its own tax and spend policies altogether. It if fails to do so, the EU will itself impose cuts under the draconian Article 126.9 of the Lisbon Treaty in what would amount to economic suzerainty.

While the symbolic move to suspend Greece of its voting rights at one meeting makes no practical difference, it marks a constitutional watershed and represents a crushing loss of sovereignty.

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/7252288/Greece-loses-EU-voting-power-in-blow-to-sovereignty.html

Greece has been under "monthly monitoring" since mid-2009 by the Eurogroup of EU finance ministers, a task delegated to Commission officials. They are effectively policing details of the Greek budget, a policy that takes the Europe into hazardous terrain. It is unclear whether any nation will tolerate such an erosion of fiscal sovereignty for long, though everybody is on best behaviour for the time being.

http://www.telegraph.co.uk/finance/economics/6933164/Greece-faces-intrusive-EU-surveillance-amid-reports-of-a-burgeoning-deficit.html




You're right, it's worse than taxation without representation. They're setting a precedent to take over a sovereign nation's economy.

[yava]

21. Dear Lanter, source please?

[yava]

22. Sorry I meant Lantern

Since you are the Lantern, please shed some light.
Whats your source for Greece being stripped of its vote? That is b.s. for sure and I wonder why you spread this.

[Green_Lantern]

27. see my post #12

nt

[yava]

20. The Greeks actually have two votes in the EU since Cyprus joined the EU

So, as it is, with less than 15 million citizens for the two Greek nations, they have more votes than Germany (Germany with more than 80 million citizens and 24 gold medals to 26 for the US in the current winter Olympics).
But hell, let them, they are nice people and they invented the Olympics :)

[AllentownJake]

6. Good Luck the Greeks are in the driver seat now

Once it was known a Greek Default would take down the EU's banking system

:rofl:

You are FUCKED EU!

[liberation]

8. It is funny to laugh..

... and then one has to remember California, our very own state and largest local economy, is bordering collapse.

Oh, and all those dollars the ECB had to "eat" during 07 and 08 to prevent our currency from collapsing when our debt packages were proven to be so toxic. Just because we refuse to take strong medicine, doesn't mean our heart attack is any better than their flu.

[AllentownJake]

11. Greece is in the bargaining position

I would advise Greece to take as much as they possibly can get for their own people and give the finger to the rest of the continent.

The rest of the continent loved issuing them debt during the boom and enabled them to get into this position. They better be prepared to do their part in helping them get out of it.

[liberation]

14. Yeah, beggers always have the upper hand... when negotiating for aid.

Good grief, some people here have a total disconnect with reality. Let me guess, you are of Greek origin.

Greece needs to clean up their house, and throwing a temper tantrum ain't going to help things at all. Spain and Portugal are in a similar situation (although not as severe). I for one welcome the largest economic block in the world (the EU) showing a sense of decorum and sanity.

It is very easy to provide all sorts of tax loopholes, when one can make up their deficit from common EU funds. The Central and Northern European economies were not willing to be taken for a ride any longer. I wish we had a similar approach with some of very own net debtor states thinking they can dictate the eating policy to those paying for most of the pie.

[AllentownJake]

16. Greece goes down

The EU banking system goes down.

I think the Greeks are in a wonderful position. Mutually Assured Destruction. Kept Russia and the US from launching missiles at each other for 40 years.

[Dirk_H]

25. Don't overestimate Greece's importance

I think you strongly overestimate the importance of the Greek economy within the Eurozone and the EU banking system.
Greece's share of Eurozones GDP is less then 3% and it would no bigger problem for the EU to help Greece to restructure their public debt, in order to avoid insolvency.
Greece's main problem is not the absolute amount of dept (which is relative to GDP lower than e.g. Japans public dept), but the difficulties and costs to refinance them. This is, where EU could easily help, e.g. with bilateral credits, a common EU-bond or a EU monetary fund.
But it is also easily comprehensible, that the other Eurozone members insists, that Greece undertakes every effort to fix their problems and stop manipulating their economic data, before getting any help.

[AllentownJake]

28. I'm looking at the weakness of the banking sector

Not Greece's importance. Overall lehman and AIG were not that important either. Everyone else was just very weak. When your immune system is compromised the common cold can kill you. What the banking sector has is the equivalent of economic AIDS.

[Rapier09]

18. I am sure that will go over really well over in Cyprus

Not to mention in regards to dealing with Macedonia or with Albanian claims towards part of Greece.

Best thing for the EU to do is kick Greece out,this taking them to court is kind of stupid.

[yava]

23. I have lived in Greece off and on since 30 years ago

Believe me, modern Greece was built with taxpayer money from EU citizens.
The Greeks know it, acknowledge it and are very grateful for it.
The present crisis is mainly a political corruption, banking and investment problem.
Its not you or anyone else who will separate the Greeks from the rest of the EU.
Dream on. Are you a stock brokers by any chance.
Whats your bone with the EU?

[steaa]

9. Yes, a collapse of the European banking system would really be hilarious.

:sarcasm:

[AllentownJake]

10. Why should the Greeks be forced to eat the mistake

that was a two part mistake. Fuck the EU banking system, make the banksters pay.

[liberation]

15. Do you have any remote education on how the EU works...

... or what the actual reality of the situation in Greece is in regards as to why the EU commission is acting this way?

[AllentownJake]

17. I sure do

Someone lent them the money and issued the CDS....let that party suffer as well :evilgrin:

[yava]

24. No he really DOES NOT

[Odin2005]

26. Geece needs to tell the corporatist Eurocrats running the EU to shove it.