Fundamental Reforms of EU Finances Requested
The Commission’s proposals are a step into the right direction Proposal of the EU Commission – a way forward
The Commission’s proposals as to a change of the European Agricultural Policy are a step into the right direction, says Rolf von Hohenhau, President of the Taxpayers Association of Europe. Simultaneously, the Taxpayers Association of Europe renews its call for a fundamental reform of EU finances.
Agricultural Policy - back to national competence
Since decades, European Agricultural Policy has been suffering. The concept behind failed to fulfil its aim, says President Rolf von Hohenhau. In his opinion, control or miss-control within the framework of a planned economy is like a foreign body. On the contrary, European Agricultural Policy must finally be orientated according to market economy principles. There-fore, not only slight modifications should be targeted. In the medium and long-term, Agricultural Policy – as income policy for the agricultural sector - must be brought back to national competence, benefits should be available for those who actually need it. According to the Taxpayers Association of Europe, this is the only way to achieve adequate, proper assis-tance for farms and reflects, at the same time, the requirements of taxpayers.
Benefits for “rural areas” shouldn’t turn out to be never ending subsidies
Financial resources have been massively reallocated into benefits for “rural areas” and there-fore need a particularly critical examination – they shouldn’t develop to be a new, never ending source of subsidies.
Reforms should also be started in other Union’s policies
In addition, other Union’s policies must be reformed without any hesitation, says President von Hohenhau. There is still a lot to be done in the area of structural policy since action is mainly taken on the basis of presumptions. It is more than questionable that this policy is actually able to achieve its decisive goal, i.e. rendering a contribution as to the imbalance existing in various regions. In addition, when envisaging imbalance corrections, target conflicts in terms of growth and employment development may be the result. In the view of the Taxpayers Association of Europe, focussing on the main requirements in this political sector is unavoid-able. Putting special emphasis in this sector will result in considerable cost savings, says the President of the Taxpayers.
Reforms help reducing the EU budget
Stop expenditure increase
All in all, the EU budget can and should be reduced significantly. The existing upper limit of approx. 1% of the gross national income of all Member States seems to be unrealistic if the possibility of positive effects as a result from such reforms are expected. A reduction of the financial burden is of importance, particularly in the case of countries with large net payments, such as Germany. Without reforms, an explosion of the EU budget must be feared. Already in the year 2012, the budget will exceed EUR 140 billion (see graph). This explosion of expenditures must be stopped, says the Taxpayers Association of Europe.
EU financing only on the basis of performance
Abolition of special arrangements
From the point of view of the Taxpayers Association of Europe, the European Union should be financed by Member State payments calculated strictly according to the economic perform-ance of individual countries. The abolition of complicated, completely inscrutable special arrangements is more than necessary, says Rolf von Hohenhau.
No EU tax or credit intake by the EU itself
The Taxpayers Association of Europe is categorically against EU tax financing by the so-called EU Tax. As formerly practised, credit intake by the EU should not be permitted.
EU Policy should focus on necessary tasks
Eu policy that concentrates on the necessary tasks will satisfy the conditions required for the maintenance of the “social market economy” and will lead to growth and welfare in the EU.
Fundamental reforms – basis and motor for the EU’s continuing success
Enlargement of the European Union cannot be handled without fundamental reforms
Fundamental reforms are – according to President von Hohenhau – the basis and the motor for a successful continuation of the European Union. Enlargement of the Union without
reforms cannot be handled and must therefore be rejected.
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The Commission’s proposals are a step into the right direction Proposal of the EU Commission – a way forward
The Commission’s proposals as to a change of the European Agricultural Policy are a step into the right direction, says Rolf von Hohenhau, President of the Taxpayers Association of Europe. Simultaneously, the Taxpayers Association of Europe renews its call for a fundamental reform of EU finances.
Agricultural Policy - back to national competence
Since decades, European Agricultural Policy has been suffering. The concept behind failed to fulfil its aim, says President Rolf von Hohenhau. In his opinion, control or miss-control within the framework of a planned economy is like a foreign body. On the contrary, European Agricultural Policy must finally be orientated according to market economy principles. There-fore, not only slight modifications should be targeted. In the medium and long-term, Agricultural Policy – as income policy for the agricultural sector - must be brought back to national competence, benefits should be available for those who actually need it. According to the Taxpayers Association of Europe, this is the only way to achieve adequate, proper assis-tance for farms and reflects, at the same time, the requirements of taxpayers.
Benefits for “rural areas” shouldn’t turn out to be never ending subsidies
Financial resources have been massively reallocated into benefits for “rural areas” and there-fore need a particularly critical examination – they shouldn’t develop to be a new, never ending source of subsidies.
Reforms should also be started in other Union’s policies
In addition, other Union’s policies must be reformed without any hesitation, says President von Hohenhau. There is still a lot to be done in the area of structural policy since action is mainly taken on the basis of presumptions. It is more than questionable that this policy is actually able to achieve its decisive goal, i.e. rendering a contribution as to the imbalance existing in various regions. In addition, when envisaging imbalance corrections, target conflicts in terms of growth and employment development may be the result. In the view of the Taxpayers Association of Europe, focussing on the main requirements in this political sector is unavoid-able. Putting special emphasis in this sector will result in considerable cost savings, says the President of the Taxpayers.
Reforms help reducing the EU budget
Stop expenditure increase
All in all, the EU budget can and should be reduced significantly. The existing upper limit of approx. 1% of the gross national income of all Member States seems to be unrealistic if the possibility of positive effects as a result from such reforms are expected. A reduction of the financial burden is of importance, particularly in the case of countries with large net payments, such as Germany. Without reforms, an explosion of the EU budget must be feared. Already in the year 2012, the budget will exceed EUR 140 billion (see graph). This explosion of expenditures must be stopped, says the Taxpayers Association of Europe.
EU financing only on the basis of performance
Abolition of special arrangements
From the point of view of the Taxpayers Association of Europe, the European Union should be financed by Member State payments calculated strictly according to the economic perform-ance of individual countries. The abolition of complicated, completely inscrutable special arrangements is more than necessary, says Rolf von Hohenhau.
No EU tax or credit intake by the EU itself
The Taxpayers Association of Europe is categorically against EU tax financing by the so-called EU Tax. As formerly practised, credit intake by the EU should not be permitted.
EU Policy should focus on necessary tasks
Eu policy that concentrates on the necessary tasks will satisfy the conditions required for the maintenance of the “social market economy” and will lead to growth and welfare in the EU.
Fundamental reforms – basis and motor for the EU’s continuing success
Enlargement of the European Union cannot be handled without fundamental reforms
Fundamental reforms are – according to President von Hohenhau – the basis and the motor for a successful continuation of the European Union. Enlargement of the Union without
reforms cannot be handled and must therefore be rejected.
return to menu