§ Lord Shore of Stepneyasked Her Majesty's Government:
Whether, as a result of the Nice Treaty, a group of states who wish to pursue a policy of enhanced co-operation in the area of tax harmonisation could do so if they fulfilled the conditions laid down in the treaties; and whether a single state which objected could no longer take the matter to a meeting of the European Council and exercise a veto there.[HL967]
§ Lord McIntosh of HaringeyThe arrangements for enhanced co-operation are fully explained in the reply given to the noble Lord by the noble Baroness, Lady Ramsay, on 29 January (Official Report, WA 33). No agreement between other member states under these arrangements compels the UK to act similarly, nor does it constrain the UK from acting differently. The Government retain their veto on any tax proposal binding on all member states, and will continue to argue that fair tax competition, not tax harmonisation is the way forward.