EU Public Affairs Monitor - 07/11/08

Benchmarks for innovation policy: A new study aims to find the ideal setting for entrepreneurs.
"A study to be published next month will set out an “entrepreneurial idyll” or an ideal environment for entrepreneurs to exist.
The study, carried out by Birmingham University and Cambridge University, aims to step away from the policy-driven measures to help boost small- and medium-sized enterprises (SMEs) and focus instead on what makes firms do well." [EuropeanVoice]

Spat over VAT persists - Germany remains highly critical over plans to lower VAT for more businesses.
"A row about extending the EU's lowest, 5% VAT rate to labour-intensive industries is likely to continue well into December, following a meeting today that revealed that divisions between the EU's 27 finance ministers remain deep.

There was, though, more agreement on VAT on cross-border trade and movement on several other issues, including an agreement to review alleged tax-evasion loopholes for Liechtenstein.
During the Ecofin meeting of finance ministers, Germany made it clear that there is no evidence that lowering VAT for labour-intensive businesses such as restaurants would create jobs and said thorough discussion is still required. The European Commission, with the strong backing of France, the EU presidency, presented the proposal in July." [EuropeanVoice]

French Senate Validates Three-Strike Scheme
"The French Senate has adopted the "Creation and Internet" law, only 24 hours after the debates began. While intense debates were anticipated, the draft gathered 297 votes in favor and only 15 against.

The draft law, which now has to be voted by the French Parliament, suffered surprisingly few amendments by the Senators, who most notably validated the three-strike scheme, under which infringers could ultimately see their Internet access cut." [Billboard][CMUDaily]