The revelations from the Pandora Papers about tax avoidance have not left the European Parliament unaffected. New laws and drastic measures must be introduced to combat tax havens. EU countries that flout the rules must be legally pursued by the European Commission.
The proposal came after a debate on the Pandora Papers. MEPs were outraged that European top politicians were involved in shady dealings. Among those named were the Dutch minister Wopke Hoekstra and the Czech prime minister Andrej Babiš.
All individuals mentioned from EU member states must be thoroughly screened. The European Commission must take a leading role in this. It must review the revelations and then study if new EU legislation is needed.
The Commission should prosecute EU countries if necessary, say members of the European Parliament. Rules must also be introduced against so-called 'golden visas' – the 'sale' of EU passports to non-EU citizens. This way, Russian criminals gained unhindered access to the European system via Cyprus and Malta.
Currently, the EU operates its own blacklist to combat tax fraud. Apparently, it is not effective enough. Parliament calls it a 'blunt instrument' that cannot properly prosecute EU countries that cross the line. Furthermore, the list is incomplete. For example, the British Virgin Islands are not on it, while two-thirds of the shell companies in the Pandora Papers are registered there.
Politicians from the European Union mentioned in the Pandora Papers must be held accountable. Besides Hoekstra and Babiš, this includes president Nicos Anastasiades of Cyprus. Former British Prime Minister Tony Blair and former Maltese European Commissioner John Dalli also appear in the Papers.
MEP Paul Tang (PvdA) is chairman of the parliamentary committee on money laundering and tax fraud. 'The anger in the European Parliament is great, and that is clearly visible in the resolution,' he says. 'We condemn EU leaders like Babiš and Hoekstra, and call on politicians to publish their financial ties to tax havens, just as MEPs do.'
The resolution also takes aim at the United States and the United Kingdom. MEP Tang said: 'American states like South Dakota have become secrecy paradises. Through shell companies, criminals and unreliable politicians can hide their money anonymously.'
Many of the UK’s overseas territories have a similar concealment industry, without London putting up any resistance. That must end.'