Approaches and proposals for tackling the coronavirus crisis
Every day brings new reports, updates and information on the coronavirus crisis.
The consequences and restrictions resulting from this crisis are the most severe we have experienced since the Second World War. The coronavirus not only endangers life and limb, but also destroys and threatens the livelihoods of many people and businesses.
The aim is to minimise the damage to society as much as possible. It is clear that everything must now be done to protect the population whilst at the same time helping the people and businesses affected by the crisis. The responsibility now lies with the federal states and the EU! For it is to be feared that the effects of the crisis will be felt for a long time to come. To cope with them, immense sums of taxpayers’ money will be required. The available funds are by no means sufficient. Consequently, in order to overcome these challenges, the federal states will have to take on billions in new debt and additional liabilities.
Yet even in a crisis, it is important to keep a cool head and find sustainable solutions. Public funds and resources must be used as efficiently as possible.
It is frustrating that some politicians, under the pretext of the coronavirus crisis, are seeking to push through far-reaching changes to European financial and fiscal policy that were previously unfeasible for good reason. The European Taxpayers’ Association (TAE) strongly warns against the mutualisation of debt, corona bonds, additional taxes, tax harmonisation (minimum tax rates), the compulsory harmonisation of all social security systems, and the removal of any restrictions on the indebtedness of individual EU Member States.
Instead of talking about debt mutualisation, the EU Member States should first take all necessary measures within their own countries to help the population and businesses weather the coronavirus crisis successfully.
Particularly during the coronavirus crisis, it is important not to focus solely on financial aid! Especially now, in the midst of the crisis, taxes and levies should be reduced and red tape cut. It is more urgent than ever to ease the burden on individuals and businesses. This will free up purchasing power and create the best possible conditions for future growth.
With this paper, the European Taxpayers’ Association aims to provide food for thought and suggestions on how, from the taxpayers’ perspective, action could be taken to provide swift and sustainable help and mitigate the consequences of the coronavirus crisis.