Pandora’s Box Has Been Opened!

TAE-President Rolf von Hohenhau’s Reaction to the Results of the EU-Summit

“The agreement reached by the European Union regarding the 750 bn. Euro aid package (Next Generation) and the Medium-Term Financial Framework (MFF) in the amount of 1.082 trillion Euro is generally viewed as a success.

It was right that the EU gave support during the Corona crisis. The fact that loans were offered points in the right direction. But the now decided collective contraction of debt is wrong: I see a high risk that the EU will continue to take up debt in the future, and in the end, taxpayers will have to bear the liability. Here, Pandora’s box has been opened! We must not forget that the mountain of debt in Europe is becoming bigger and bigger. On one hand the national states have to take up debt in order to finance their own aid programmes, and now they additionally are held liable for the debts of the EU.

We, the Taxpayers Association, view it with quite a bit of scepticism when subsidies in the billions are granted that are not bound by concrete programmes and measures as well as automatic checks. After all it is not even guaranteed that the countries can get their economies back in shape with the help of these aid measures. On the contrary, there is a risk that these monies are simply consumed.

Therefore, it is important that the EU pays attention that the money that is paid out is actually spent according to the specifications. In this, the EU Commission has to consistently push for the adherence to the self-imposed rules!”

“If now 1.8 trillion Euro (Medium-Term Financial Framework (MFF) and the programme Next Generation) are being reported in the news this is really just a fraction of the real amounts on the table. For example, the ECB has increased its bond purchases. There are funds by the EIB and through the ESM. Further programmes are already in the pipeline of the EU Commission. Altogether, we are talking about 5.5 trillion Euro! The EU is on a direct path into a debt trap. Unfortunately, this is completely ignored in the current discussion.”

“We, the taxpayers, therefore have to be on highest alert, because in the end it will be us who have to foot the bill for this European spending and debt policy,” states the president of the European Taxpayers Association.

Download Overview EU financial framework and critical appraisal of TAE