TAE against the ‘Rescue Union’

European Taxpayers’ Association opposes the ‘bailout union’ – Solidarity: yes; automated financial aid: no!

At its international spring conference in Ukraine, attended by financial experts from Europe and the US, the Taxpayers’ Association of Europe (TAE) called for a requirement that financial aid to EU countries in financial difficulties (Greece, Ireland and Portugal) may only be paid out following a thorough review and the provision of sufficient collateral.

According to the TAE, solidarity is a duty incumbent on EU Member States. However, it must not become the norm for other countries to have to bear the burden of country-specific financial problems.

Profligacy and negligence at the expense of European taxpayers jeopardise the principle of solidarity and could undermine public acceptance of the European Union as a whole. In the long term, the citizens of the donor countries are not prepared to bear the consequences of the recipient countries’ uneconomical fiscal management.

Support for Greece, Ireland and Portugal has reached a financial scale that the European Union can barely sustain, according to the President of the TAE, von Hohenhau. Furthermore, countries such as Italy and Spain are poised to seek assistance. Their financial requirements would far exceed the support provided to date and could not be covered by the solidarity community.

In addition to fiscal consolidation measures, solidarity aid must be backed by sound collateral, said the President of the Taxpayers’ Association. In the case of Greece, this would involve assets such as shareholdings, property and other reserve assets.

The EU’s demand that Member States levy their own taxes was discussed once again – a demand which the Taxpayers’ Association has rejected for years, as it would undoubtedly lead to additional burdens on European citizens. Furthermore, EU tax authorities would very soon lead to bureaucratic charges, according to the President of the Taxpayers’ Association.

The Taxpayers’ Association announced a large-scale campaign in Ukraine against the EU’s plans to increase its direct taxes.

Further information:

Taxpayers’ Association Munich office, Michael Jäger:
Tel.: 49 89 12600820;

Taxpayers’ Association Brussels Office, Walter Grupp:
Tel.: 32 2 7387112