The key question is how far the higher expenditure relative to GDP in the less prosperous regions is accompanied by higher taxes and other charges to fund this higher level -- or how far, in other words, the effect of the higher spending is offset by higher charges levied on income in the regions concerned.

Report on the proposal for a Council decision concerning the dock dues in the French outermost regions [COM(2014)0666 - C8-0242/2014 2014/0308(CNS)] - Committee on Regional Development.

on the proposal for a Council decision concerning the dock dues in the French outermost regions

Dock dues in the French outermost regions

The purpose of introducing a tax known as 'the AIEM tax on the import and delivery of goods in the Canary Islands’ is to allow Spain to apply lower rates of tax to certain products manufactured in this outermost region. It must be stated, of course, that the purpose of the Community authorisation is not to create the AIEM, because the Spanish authorities are free to do this, as long as Community directives on VAT and on special consumer taxes do not apply in the Canaries.

As well as referring to the views of the various European institutions and bodies calling for specific tax policy measures to be taken in the regions concerned, it is necessary to mention the comments of the Commission itself, which, in its report on the measures to implement Article 299(2) in respect of the outermost regions of the European Union (COM(2000) 147), states that ‘it is also necessary to examine and if necessary implement the alternative proposal formulated by Spain, . which envisages the introduction of a specific neutral tax which takes account of the development features of the Canary Islands’.