§ Mr. Teddy Taylorasked the Prime Minister if she will raise at the next meeting of the European Council the implications for national sovereignty of the decision of the European Commission to initiate proceedings in the European Court on the legality of the zero rate of value added tax applied by the United Kingdom; and if she will make a statement.
§ The Prime MinisterNo. The Commission has the right to institute infraction proceedings against member states under article 169 of the EEC Treaty. We are of course fighting the VAT zero-rating case vigorously.