Why we need European cultural policies: the impact of EU ...

Changes in taxation policies were necessitated by several reasons: demands from the EuropeanUnion to harmonize with the acquis communautaire, because of policy transfer, or simply attemptsto apply models that offered good results in other countries. Reports from the questionnaireabout the relevance of these changes for culture included both positive and negative reactions.However, responses about VAT showed something interesting. When the changes were regardedas positive, there was not much information, little research and it was difficult to extract data. Ifthe change was perceived as negative, it was more visible, much easier to identify and more oftenquoted in various reports and discussion papers.The issue of tax policy has been directly linked with one of the topics being widely debated incultural policy circles across Europe, mobility of artists and cultural workers. At the moment, theonly incentive for mobility at an EU level is funding, targeted at encouraging mobility. However,there is evidence that action also needs to be taken at a policy level, for example harmonizingtaxation or social security to reduce these types of barriers to mobility.In the run-up to accession, when tax policy was being reformed, cultural aspects were notspecifically considered. It was reported that the impact on cultural policy was taking place mostlyas a side-effect of broader changes in tax laws. Also, this question has been perceived almostexclusively as an internal question. None of the literature nor the respondents (except for Slovenia)linked taxation policy to the issue of facilitating mobility and cultural cooperation within Europe.Neither did the changes which took place in new member states’ social security regulations – alsovery important for mobility – take into account culture and cultural cooperation. Social securityhas not been a matter needing to be harmonized, it is up to individual member states and therewas little coordination in the drawing up of new laws. Tax and social security regulations affectingartists still vary greatly.Lately, there have been several judgments at the European Court of Justice which referred directlyand indirectly to mobility within the internal market.93 The adjudicated topics included artists’taxation and payment of social and health benefits in different EU member states. Some countrieshave taken account of these rulings while some have completely ignored their implications.94The questionnaire also focussed on competition rules and legislation regarding free movement ofgoods. Responses indicated that, so far, very few changes relevant for cultural policy in the newmember states have resulted from harmonizing rules about competition and state aid. This wasnot really perceived as an issue even in old member states 95 until the European Commissionstarted interpreting some cultural policy measures as contrary to the rules. It is likely that with thestrengthening of institutions and implementation of the rules, some regulations of the new memberstates will be challenged.64Part 2 Preliminary assessment of the impact of EU enlargement