Meeting of the EP Committee of Inquiry to investigate alleged contraventions and maladministration in relation to money laundering, tax avoidance and tax evasion (PANA), with Professor Joseph STIGLITZ, Nobel Memorial Prize in Economics, in the EP in Brussels. Statements by Werner LANGEN(EPP, DE), Jeppe KOFOD (S&amp;D, DK), Joseph STIGLITZ, Nobel Memorial Prize in Economics, Petr JEŽEK (ALDE, CZ),&nbsp; Dariusz ROSATI (EPP, PL), and Sergio Gaetano COFFERATI (S&amp;D, IT).

Brussels

exchange of views

KOFOD, Jeppe (S&D, DK)

fight against tax fraud and evasion (T)

fight against organised crime, corruption and money laundering (T)

Panama Papers inquiry committee

LANGEN, Werner (EPP, DE)

JEŽEK, Petr (ALDE, CZ)

COFFERATI, Sergio Gaetano (S&D, IT)

ROSATI, Dariusz (EPP, PL)

Nobel Prize

Exchange of views with Professor Joseph STIGLITZ, Nobel Memorial Prize in Economics: extracts from the meeting

Arrival of Joseph STIGLITZ, Nobel Memorial Prize in Economics to the meeting room (2 shots)

Werner Langen (EPP, DE), Chair of Parliament&rsquo;s Committee of Inquiry into Money Laundering, Tax Avoidance and Tax Evasion (PANA) giving the floor to Joseph STIGLITZ, Nobel Memorial Prize in Economics

SOUNDBITE (English), Jeppe KOFOD (S&amp;D, DK), In a report voted by this Parliament this summer we asked to set up a global register of all assets, financial assets that people and companies are holding. Is that a feasible idea, can we do that and can our institutions provide that kind of assets?

SOUNDBITE (English), Joseph STIGLITZ, Nobel Memorial Prize in Economics, A large fraction of the global wealth has escaped taxation and reporting. In some way I should emphasize the problem is worst in many ways in Europe than is in the United States for the following reason on the tax side.

SOUNDBITE (English), Joseph STIGLITZ, Nobel Memorial Prize in Economics, Most European countries are based on residency where people earn their income, so you do not have as much global reach in your tax. Therefore, this kind of use of offshore centres particularly is more problematic in the case of Europe.

SOUNDBITE (English), Petr JE&#381;EK (ALDE, CZ), What do you think on how we can affect our fight on these changes against tax avoidance, tax evasion and money laundering?

SOUNDBITE (English), Joseph STIGLITZ, Nobel Memorial Prize in Economics, The first issue raised of the onshore tax evasion and tax evasion of the City of London and the British Virgin Islands, that is what I referred to before both in Europe and the United States there are jurisdictions which do not comply with what I would say are good norms. That where I think the EU as a whole has to take strong actions, domestically, that should not be allowed and put pressure on the constituency countries. In the same way, I do not think you should discriminate between Panama and the United States. I know that in practice real politics makes a difference, but the fact is that if there are these secrecy havens within the USA, one should take strong action against them.

SOUNDBITE (English), Dariusz ROSATI (EPP, PL), What we can do in terms of improving our tax system and our regulation in order to reduce those incentives and, in other words to reduce the pull factor in these practices?

SOUNDBITE (English), Joseph STIGLITZ , Nobel Memorial Prize in Economics, There are a whole range of things we can do to put pressure on the non cooperative States and I described one you can take, you might say it is a extreme measure but it is one that we might eventually take which it is to say if you do not cooperate with the global norms we do have to give you our companies the right to have you as an interlocutor. That is to say our banks cannot have your banks as a correspondent. You have a contagious disease, secrecy, and we do not want that disease to spread. Therefore, we will not allow our banks to interact with you. It is a privilege, not a right for our companies to interact with you and if you are not going to comply with those international norms, we will not allow it.

SOUNDBITE (Italian), Sergio Gaetano COFFERATI (S&amp;D, IT), Do you agree that the forthcoming corporation tax, equal or next to zero, has to be a key criteria together with secrecy in order to define non corporate jurisdiction?

SOUNDBITE (English), Joseph STIGLITZ, Nobel Memorial Prize in Economics, These tax free zones that some countries have are particularly pernicious because they provide a vehicle for money laundering. That is to say when you engage in activies pretending you are doing something, producing something out of it, you might do a little bit of that, but the real activity is money laundering.