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The United States of Europe

When now the market and media hystery around the Euro is fading away it is getting clear that half-pregnant is not a happy state. More integration is needed to reach the splendid potential of a true single market - the largest in the world - is needed.

It is now very clear that no national politicians are allowed to borrow money (in the citizens' childrens' name) at a rate that not only destroys their own economy - but also endangers the stability of other European countries (be they in the Eurozone or not). Most of this hectic borrowing has furthermore led to overconsumption (surely bad news for the environment) - not investments for the future or dismantling of expensive structures of the past.

The next grand step is thus now being taken - fiscal disciplin - the needed strong fundament for the United States of Europe.

While this is happening, other more practical EU harmonization issues need to progress as well. In the Finnish Real Time Economy program (aiming at cutting administrative cost in half and taking them real time) VAT collection has been chosen as a priority. VAT collection can not be a political issue and should thus be easy to implement.

The model created is very simple and is based on accelerated migration to e-invoicing (which has the 250bn business case as a whole). When in next couple of years almost all invoices are in electronic structured form (Finland already e50% in b2b) each invoice issued will automatically send the VAT information needed (EU-harmonized) to Tax (cloud-based register) in realtime. This will eliminate all VAT-reporting (60m workdays in enterprises - and a lot in Tax). E-invoice payments deliver the VAT to Tax automatically and the net amount to the seller - again saving costs both in enterprises and the public sector. Most devils in the details have already been addressed.

Productivity improvements on a grand scale - and an important step forward for the Single Market. Not to talk about getting tax (a big bite out of the 118bn VAT Gap - our money..) collected. At the same time we can get a firm grip on the high cost of the grey economy and criminal behavior.

Who can possibly be against this? Nobody, I am sure. But how can we get some more steam in the engine? DG Taxud is surely doing its part - but more is needed. Please join the supporters.

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Comments: (4)

Melvin Haskins
Melvin Haskins - Haston International Limited - 31 January, 2012, 07:28Be the first to give this comment the thumbs up 0 likes

Dear Bo

Dream on. As someone who voted in a referendum in the 1970s in the UK to join the EEC, I did not sign up to the EU. The only way for an integrated Europe to work is political and fiscal union.

There is no united Europe because each country has it own philosophy of life. The whole idea of the EEC was a free trade area. What is wrong with that and why do we need political and fiscal union?

Mel Haskins

A Finextra member
A Finextra member 31 January, 2012, 10:45Be the first to give this comment the thumbs up 0 likes

This is great! Now Finland can afford to pay for Greece, Portugal, Ireland, Spain, Italy, etc.

Bo Harald
Bo Harald - Transmeri, Demos, Real Time Economy Program,MyData - Helsinki Region 31 January, 2012, 11:14Be the first to give this comment the thumbs up 0 likes

We can afford better indeed - and when it is our turn others can afford it..

Bo Harald
Bo Harald - Transmeri, Demos, Real Time Economy Program,MyData - Helsinki Region 31 January, 2012, 11:15Be the first to give this comment the thumbs up 0 likes

We have now learned that half-pregnant is expensive.

Bo Harald

Bo Harald

Chairman/Founding member, board member

Transmeri, Demos, Real Time Economy Program,MyData

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This post is from a series of posts in the group:

Innovation in Financial Services

A discussion of trends in innovation management within financial institutions, and the key processes, technology and cultural shifts driving innovation.


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