When Macedonia plays social dumping
(B2) This is a banal advertisement that appeared in several European newspapers (including Le Monde in France).
It touts Macedonia as a host country for European companies. A "wifi country". Access to a market of 600 million consumers (thanks to pre-accession status). A one-stop shop allowing you to do all the formalities in 3 days. So far nothing but classic... Where advertising thickens is when it boasts of its tax and social system, out of all competition.
Employees paid at 220 euros per month (370 euros with charges), it's wonderful and unbeatable in almost the entire European Union!
As for the tax, it is almost non-existent. A 10% flat tax (in 2008). And in specific investment areas: an exemption from taxes on profits for 10 years and a 50% reduction in personal tax. Investors are also exempt from VAT and customs duties for goods, equipment and machinery. Equally wonderful...
see: http://www.investinmacedonia.com
The only problem is that such a targeted tax provision could contravene, according to some experts from the European Commission, the principle of tax fairness in Europe (fight against anti-competitive distortions), or even the rules on public aid. The measure must now be examined within the framework of the joint EU-Macedonia expert groups. If the measure were illegal, the companies could have to reimburse the tax exemptions they benefited from.
On the other hand, there is no European rule against the dumping of very low wages.
Macedonia must have foreign investment to develop. But by using such arguments, is this the best way to convince of its European integration?
