EU Parliament shoots down controversial copyright treaty; EU Commission ignores them

Meet CETA, the new ACTA

Acta, the Anti-Counterfeiting Trade Agreement, is a proposed international agreement which aims to create cross-national standards on what constitutions copyright infringement. This fantastic Wired primer goes into greater detail about it, but the short version is that it has been seen as Europe's answer to SOPA, the American law which sparked the wave of website blackouts in protest earlier this year.

The treaty was negotiated behind closed doors, and required signatories to criminalise civil copyright infringement, all while implying false equivalencies between piracy and counterfeiting. As with SOPA, it drew large – although more low key – protests, which appeared to have done the trick. Last Wednesday, the European Parliament voted overwhelmingly against Acta, 478 to 39.

Olivia Solon wrote:

In a statement, the EU recognised the "unprecedented direct lobbying by thousands of EU citizens who called on it to reject Acta, in street demonstrations, emails to MEPs and calls to their offices". It also acknowledged a petition that had been signed by 2.8 million citizens urging them to reject Acta.

But just because the parliament rejected Acta, doesn't mean the battle's won. The Canada-EU trade agreement, a pending agreement between the two nations, contains word-for-word the same clauses which made Acta so concerning.

The pressure group La Quadrature du Net writes that :

CETA literally contains the worst of ACTA, in particular: general obligations on enforcement, damages, injunctions, DRM circumvention, and border measure rules. The worst and most damaging parts for our freedoms online, criminal sanctions and intermediary liability, are word for word the same in ACTA and CETA.

In all coherence with last week's vote, the European Commission must drop CETA negotiations (or expurgate it from all the aforementioned, copyright-related provisions), or else be humiliated once again when the European parliament get to vote on CETA.

Canadian journalist Michael Geist breaks down the similiarities. For example, this is a passage from CETA; the bolded lines are straight from ACTA:

Each Party shall provide adequate legal protection and effective legal remedies against the circumvention of effective technological measures that are used by authors, performers of performances fixed in phonograms, or producers of phonograms in connection with the exercise of their rights in, and that restrict acts in respect of, their works, performances fixed in phonograms, and phonograms, which are not authorized by the authors, the performers of performances fixed in phonograms or the producers of phonograms concerned or permitted by law.

Other passages are even worse, reproduced verbatim.

Wired's Liat Clarke sums up the problem:

The 4 July vote saw the EU's trade committees publicly acknowledge the potentially dangerous vagaries in the agreement relating to civil liberties. But it seems to be just these vagaries that have reappeared in Ceta, including mention of "cooperative efforts" that could lead to ISPs being forced to take down content, compulsory disclosure of information on any user accused of copyright infringement and the incredibly ambiguous concept of weighing penalties on the accused of "any legitimate measure of value that may be submitted by the right holder, including lost profits".

Criminal liability for "aiding and abetting" infringement also crops up again, and is one of the key clauses that initially troubled EU trade committees since it suggests data centres and ISPs might be open to penalties ranging from prison time to extortionate fines. Ceta has already gained negative press due to clauses referring to EU pharmaceutical patent fees that could dramatically increase Canada's healthcare costs. Attention being drawn to these new obstacles could potentially scupper the agreement entirely.

Generally speaking, if a democratic body votes something down, it's not the prerogative of an undemocratic one to resurrect it. Clearly at the EU, things work differently.

Members of the European Parliament hold placards reading 'Hello democracy goodbye ACTA' as they take part in a vote on ACTA. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Q&A: What are tax credits and how do they work?

All you need to know about the government's plan to cut tax credits.

What are tax credits?

Tax credits are payments made regularly by the state into bank accounts to support families with children, or those who are in low-paid jobs. There are two types of tax credit: the working tax credit and the child tax credit.

What are they for?

To redistribute income to those less able to get by, or to provide for their children, on what they earn.

Are they similar to tax relief?

No. They don’t have much to do with tax. They’re more of a welfare thing. You don’t need to be a taxpayer to receive tax credits. It’s just that, unlike other benefits, they are based on the tax year and paid via the tax office.

Who is eligible?

Anyone aged over 16 (for child tax credits) and over 25 (for working tax credits) who normally lives in the UK can apply for them, depending on their income, the hours they work, whether they have a disability, and whether they pay for childcare.

What are their circumstances?

The more you earn, the less you are likely to receive. Single claimants must work at least 16 hours a week. Let’s take a full-time worker: if you work at least 30 hours a week, you are generally eligible for working tax credits if you earn less than £13,253 a year (if you’re single and don’t have children), or less than £18,023 (jointly as part of a couple without children but working at least 30 hours a week).

And for families?

A family with children and an income below about £32,200 can claim child tax credit. It used to be that the more children you have, the more you are eligible to receive – but George Osborne in his most recent Budget has limited child tax credit to two children.

How much money do you receive?

Again, this depends on your circumstances. The basic payment for a single claimant, or a joint claim by a couple, of working tax credits is £1,940 for the tax year. You can then receive extra, depending on your circumstances. For example, single parents can receive up to an additional £2,010, on top of the basic £1,940 payment; people who work more than 30 hours a week can receive up to an extra £810; and disabled workers up to £2,970. The average award of tax credit is £6,340 per year. Child tax credit claimants get £545 per year as a flat payment, plus £2,780 per child.

How many people claim tax credits?

About 4.5m people – the vast majority of these people (around 4m) have children.

How much does it cost the taxpayer?

The estimation is that they will cost the government £30bn in April 2015/16. That’s around 14 per cent of the £220bn welfare budget, which the Tories have pledged to cut by £12bn.

Who introduced this system?

New Labour. Gordon Brown, when he was Chancellor, developed tax credits in his first term. The system as we know it was established in April 2003.

Why did they do this?

To lift working people out of poverty, and to remove the disincentives to work believed to have been inculcated by welfare. The tax credit system made it more attractive for people depending on benefits to work, and gave those in low-paid jobs a helping hand.

Did it work?

Yes. Tax credits’ biggest achievement was lifting a record number of children out of poverty since the war. The proportion of children living below the poverty line fell from 35 per cent in 1998/9 to 19 per cent in 2012/13.

So what’s the problem?

Well, it’s a bit of a weird system in that it lets companies pay wages that are too low to live on without the state supplementing them. Many also criticise tax credits for allowing the minimum wage – also brought in by New Labour – to stagnate (ie. not keep up with the rate of inflation). David Cameron has called the system of taxing low earners and then handing them some money back via tax credits a “ridiculous merry-go-round”.

Then it’s a good thing to scrap them?

It would be fine if all those low earners and families struggling to get by would be given support in place of tax credits – a living wage, for example.

And that’s why the Tories are introducing a living wage...

That’s what they call it. But it’s not. The Chancellor announced in his most recent Budget a new minimum wage of £7.20 an hour for over-25s, rising to £9 by 2020. He called this the “national living wage” – it’s not, because the current living wage (which is calculated by the Living Wage Foundation, and currently non-compulsory) is already £9.15 in London and £7.85 in the rest of the country.

Will people be better off?

No. Quite the reverse. The IFS has said this slightly higher national minimum wage will not compensate working families who will be subjected to tax credit cuts; it is arithmetically impossible. The IFS director, Paul Johnson, commented: “Unequivocally, tax credit recipients in work will be made worse off by the measures in the Budget on average.” It has been calculated that 3.2m low-paid workers will have their pay packets cut by an average of £1,350 a year.

Could the government change its policy to avoid this?

The Prime Minister and his frontbenchers have been pretty stubborn about pushing on with the plan. In spite of criticism from all angles – the IFS, campaigners, Labour, The Sun – Cameron has ruled out a review of the policy in the Autumn Statement, which is on 25 November. But there is an alternative. The chair of parliament’s Work & Pensions Select Committee and Labour MP Frank Field has proposed what he calls a “cost neutral” tweak to the tax credit cuts.

How would this alternative work?

Currently, if your income is less than £6,420, you will receive the maximum amount of tax credits. That threshold is called the gross income threshold. Field wants to introduce a second gross income threshold of £13,100 (what you earn if you work 35 hours a week on minimum wage). Those earning a salary between those two thresholds would have their tax credits reduced at a slower rate on whatever they earn above £6,420 up to £13,100. The percentage of what you earn above the basic threshold that is deducted from your tax credits is called the taper rate, and it is currently at 41 per cent. In contrast to this plan, the Tories want to halve the income threshold to £3,850 a year and increase the taper rate to 48 per cent once you hit that threshold, which basically means you lose more tax credits, faster, the more you earn.

When will the tax credit cuts come in?

They will be imposed from April next year, barring a u-turn.

Anoosh Chakelian is deputy web editor at the New Statesman.