Saturday, December 04, 2010

A benefit of the EU?

Kraft Foods is moving part of its newly acquired Cadbury business to Switzerland in order to reduce its UK tax bill. It is expected that Kraft will have completed this move by next year, relocating a small number of key management posts to its European headquarters in Zurich.

A spokesman for Kraft said: "Since 2006 we have been implementing our European model involving a (holding) company based in Zurich together with local companies in country markets."

Now, wasn't there something about being in the EU, with access to European markets and all that, which made all of this unnecessary? So how is it that a major US multi-national finds it a better option to run its business in Europe from a non-EU country?