TAE’s key positions on the future viability of the European Union
Preamble
The Taxpayers Association of Europe (TAE) regards cooperation between Member States within the European Union (EU) as the foundation for sustainability, security and prosperity for citizens and businesses in Europe. In view of the dramatic challenges and changes, such as tackling the consequences of the coronavirus pandemic, climate change, energy security, the new wave of refugees from Africa and the changed security situation resulting from the war in Ukraine, it is clear that national solutions alone are no longer sufficient and that global problems can only be tackled within a strong and effective European community. However, even the EU in its current form is increasingly reaching the limits of its capacity. It is therefore important to make the EU more resilient – in short, to make it ‘fit for the future’. The entry into force of the Treaties of Rome in 1958 laid the foundations for today’s EU. It is high time that we reflected on these fundamental values and continued to develop Europe in the spirit of the founding fathers: more Europe where it is needed, and less Europe where it is possible!
Fundamental Positions
Set out below are the TAE’s key fundamental positions, which are intended to help secure the EU’s future viability and make Europe fit for the future. This list does not claim to be exhaustive. Rather, it serves as a basis for an open social dialogue on shaping the future of Europe.
A clear commitment to the principle of the market economy
- Subsidiarity and personal responsibility
- Openness to technology / technological neutrality
No commitment to specific technical solutions, but rather to objectives – which must, however, be achievable and affordable. - Strengthen citizens’ rights! These include mobility, the right to cash payments and freedom of enterprise.
Maintain competition between locations
- No further harmonisation of wages, social security systems
or taxes at EU level.
Setting and protecting tax ceilings for SMEs and private individuals
- Whoever sets the minimum tax rates must also set the upper limit on the tax burden.
Reducing red tape and deregulation
- The European Commission has set itself the target of reducing the administrative burden on SMEs in relation to reporting obligations by 25 per cent. Although this is a step in the right direction, it is not sufficient on its own. What is needed is a comprehensive reduction in red tape across all areas, with binding targets and monitoring. This also includes an efficiency review of EU decisions (‘qualitative simplifications’).
Regulatory impact assessment
- A functional and authentic SME test based on a defined and established standard catalogue of issues.
Reform of decision-making at European level
- Before decisions can be extended to require a qualified majority, a reform of this voting procedure is essential. Currently, 55 per cent of EU Member States and 65 per cent of the EU population must vote in favour of majority decisions, meaning there is a blocking minority of 35 per cent. With the United Kingdom’s withdrawal (Brexit), the balance of power has shifted in favour of the southern countries. These countries have traditionally held a blocking minority of 35 per cent, meaning that majority decisions cannot be taken without the consent of the southern countries. However, since Brexit, this no longer applies to the northern countries. To take account of this shift resulting from Brexit, the blocking minority should be adjusted downwards accordingly.
- The principle of unanimity in financial matters and in decisions affecting national budgets must be upheld. However, this does not apply to decisions affecting the EU’s fundamental security interests, such as energy supply or the defence of the EU.
No new EU debt and no mutualisation of debt
- The mutualisation of debt undermines the principle of performance and weakens Member States’ efficient spending behaviour. The current system reduces the incentive to use taxpayers’ money sparingly and creates false incentives to take on debt.
- New debt places a burden on future generations and increasingly restricts their ability to act in the future.
Brussels, 29 November 2023