EFES NEWSLETTER – OCTOBER 2014
Manifesto 2014: Fiscal incentives are indispensable prequisites
Worldwide practical evidence and a wide range of academic research support the view that a proper legal environment and the provision of suitable fiscal incentives are indispensable prerequisites for any policy truly aiming the development of employee share ownership.
Moreover, such evidence and research also show that fiscal incentives always pay off medium/long term and in many ways.
Organisations promoting employee owner-ship around the world have demanded persistently and consistently supportive legislations including fiscal incentives for the common good (evidenced in additional growth and profitability, the spread of wealth, contribution to economic and social stability).
New fiscal incentives pave the way to new encouraging development, while political decisions reducing or cutting such incentives always lead to regression.
New European Commission and Parliament
All over the world, from the United States to China and Africa, employee share ownership is highlighted and promoted as a factor for boosting activity, greater productivity and better results and social balance for all. This is also true in the UK, where fiscal incentives in this direction have been strongly improved recently. The development of employee share ownership can be a major factor of investment and recovery, also for the European Union. For the EU, this is the right political choice to do.
Letter to President Jean-Claude Juncker
We have a selection of 30 remarkable articles in 9 countries in September 2014: Australia, Belgium, France, India, Italy, Morocco, UK, USA.
Australia: The Australian Government is close to finalising new employee share-ownership rules that will replicate key aspects of a British regime that seeks to encourage stock options in small companies and start-ups.
Belgium: The EFES urges the European Commission to retain European employee share ownership policy within the “Jobs, Growth, Investment and Competitiveness” responsibility.
France: Recent Finance Bills have demolished employee share ownership in France, with a 65% higher tax burden. First visit of the new Minister of Economy is for a large workers’ cooperative. New employee share plans for GDF Suez, for Capgemini, for Peugeot.
India: What is ESOP in India?
Italy: New management for the employee shareholders’ association of Telecom Italia.
Morocco: New employee share plan for Capgemini.
Russia: A Russian vision on Mondragon and ESOP plans.
UK: New legal and tax environment encourages employee share ownership. Tax exemptions introduced in the UK Finance Act 2014 are encouraging employee ownership trust (“EOT”) buy-outs and this successful UK business model could attract momentum internationally. New research confirms the benefits of employee share plans.
USA: Results from the 23rd Annual Economic Performance Survey of ESOP (employee stock ownership plan) companies. Two short visions about ESOPs: The tax law provides a buyer for your business. A path to increasing a company’s sales, profitability, employee satisfaction and job security.
The full press review is available on:
EFES – EUROPEAN FEDERATION OF EMPLOYEE SHARE OWNERSHIP
FEAS – FEDERATION EUROPEENNE DE L’ACTIONNARIAT SALARIE
Avenue Voltaire 135, B-1030 Brussels
Tel: +32 (0)2 242 64 30 – Fax: +32 (0)2 808 30 33
Web site: www.efesonline.org
EFES’ objective is to act as the umbrella organization of employee owners, companies and all persons, trade unions, experts, researchers, institutions looking to promote employee ownership and participation in Europe.