Belgium takes over E.U. presidency at crucial time

By Batuk Gathani

BRUSSELS, JUNE 2. Belgium on Sunday took over the six-monthly rotating presidency of the 15-member European Union at a time when the grouping is in the process of expansion. This is Belgium's 11th turn at the E.U. presidency.

Within the next two decades, the E.U. is likely to have 25 member-States as more nations from the former communist ruled East and Central European countries opt for a free market economy and multi-party democracy. Belgium is considered Europe's most federal State. Over 70 per cent of the country's export and import trade is with the E.U. countries. Although, the average Belgian pays one of the E.U.'s highest taxes and social security charges, to many foreign investors and multi-national companies the country is a tax haven. The country is a favourite city for many American multinational companies because the local tax laws allow them to set up subsidiaries to provide commercial and employee training services to other parts of the companies world- wide virtually tax-free.

Mr. Guy Verhofstadt, the Prime Minister will be heading the E.U at a time when the euro currency and notes will be introduced on January 1, 2001, in the 12 euro-zone countries. Efforts for a greater European integration have been stymied with Ireland rejecting the Nice Treaty. The over 30 per cent devaluation of the euro against the dollar since its launch in January 1999 has many worried about the future of the European Union.

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Section  : International
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