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EU summit to focus on energy, taxation

22 May 2013 00:54 (UTC +04:00)

Baku-APA. European Union (EU) leaders are expected to meet Wednesday to discuss energy policy and fighting tax evasion, two issues of great importance to Europe's economy and social cohesion, APA reports.

"The aim of this European Council is to set the direction for future work on two issues of crucial importance for Europe's economy and social cohesion: energy and taxation," European Council President Herman Van Rompuy said Tuesday.

"I intend for the European Council to hold a number of such thematic discussions, to ensure that all of our policies contribute fully to improving competitiveness, employment and growth," Van Rompuy added in a statement.

Explaining the reason to put energy high on the agenda, a senior EU official who refused to be named said Tuesday that "energy is the oxygen of economy" and affordable energy would definitely contribute to growth and jobs, and help businesses and consumers.

While the United States is undergoing a "shale gas revolution" with China also following the steps, such an energy revolution will neither come in the near future nor be on the horizon, the official said at a briefing.

Stressing that the natural gas cost for businesses in the EU is four times higher than those in the U.S., the official said Europe must find an approach to solve the issue, through energy saving and energy efficiency, etc.

As EU official figures showed that the total loss of revenue due to "illegal fraud and unacceptable evasion" is estimated to be around one trillion euros (about 1.29 trillion U.S. dollars) a year, fighting tax evasion would also be discussed.

European Commission President Jose Manuel Barroso earlier Tuesday lambasted tax fraud and evasion and called for immediate action to fight the illegal practice at a meeting in the European Parliament.

"How can we explain to honest households and businesses who are feeling the squeeze yet still paying their fair share of taxes, that there are other parts of society and enterprise who are deliberately avoiding paying up?" Barroso asked.

"How can we justify that fiscal consolidation is requiring Member States to make difficult choices to reduce expenditure, yet at the same time there are whole piles of cash that should be in the public purse but are never collected?" He added.

According to the EU official, EU leaders are also expected to discuss the situation in Syria, but no "operational text" would emerge from the discussion.

The official said discussion held during the meeting would mainly be "political," and not many substantial measures were expected.

In the statement, Van Rompuy deemed the meeting as an an opportunity to have a "strategic discussion" among EU leaders on key issues of energy policy and competitiveness, rather than going into details.