REINFORCING THE EU INTEGRATION USING TAX REGULATION. THE BARRIER OF FISCAL COMPETITION
REINFORCING THE EU INTEGRATION USING TAX REGULATION. THE BARRIER OF FISCAL COMPETITION

Summary/Abstract: The paper examines fiscal competition towards fiscal harmonization in the EU, highlighting the legal framework outlined in this area by the provisions of the TFEU and arguing the need for an administrative monitoring and control authority. The research to identify the methods for strengthening the cooperation among member states of the EU has lead to arguments to monitor and to control tax competition. This is a controversy solution, which requires further investigation, as the competition is not to be control in order to produce the best results on the market. Tax competition is not a new concept, the first analyzes of the phenomenon dating back one century, but with important implication on the single European market. The effects of tax competition are analyzed, emphasizing the tendency of governments to engage in open strives to attract investments, maintain revenues and long deposit profits, at the level of the EU Member States, but also at a global level. This conduct is based on the regulatory policies and it has direct effects both on national economies and on the international business environment. Out of the various forms of competition, tax competition can be considered a way to achieve global competitiveness and, indirectly, a mean to block free movement in the EU. The research on the possibility to reinforce the EU integration using taxation mechanisms points out the use of directive as an integration method and proposes the uniform rule of law for this purpose, using the European regulation as a regulatory instrument.

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