Comment on EU Budget Discussion 2014-2020

Taxpayers Association of Europe requests commitment to more austerity for the EU 2014-2020 Financial Perspectives and demands reforms

In the debate about the future EU financial perspectives from 2014 to 2020, the Taxpayers Association of Europe (TAE) requests from the European Commission, the European Parliament and the recipient countries within the EU a clear austerity commitment. “The EU Commission has to present an authentic austerity budget and create more efficiency as to its expenditures instead of further increasing revenues“, says the President of the Taxpayers Association of Europe, Rolf von Hohenhau.

Both the Commission’s original proposal and the amended version regarding the seven-year financial period ahead allow expenditures which go beyond a trillion of euros. In addition to that, the Commission and the EU recipient countries clearly require more financial means for themselves even though the strong EU countries, with Germany leading the way, have already provided considerable aid and guarantees for over-indebted states in crisis. “We have reached the limit in terms of the performance ability of donor countries“, criticises the Taxpayers Association of Europe. “How do you explain to the taxpayers why the Commission - which is part of the notorious Troika and takes Greece to task on a regular basis - does not have to follow the same severe budgetary discipline as is applicable for other EU countries“.

In the light of a continuing national debt crisis in the Euro zone all the EU States should know that austerity is the dictate of the moment, says Rolf von Hohenhau. This is why cutbacks in the EU budget are more than appropriate so as to push this seven-year budget below the trillion euro limit instead of inflating it even more. At the same time, the assistance structures have to be modified in a way and manner so that the EU monies are able to better achieve what they are intended for. In parallel, the waste of tax money has to be further reduced on the EU level. The amount of monies misused in the EU is approximately 5 billion euro per annum. This is because subsidies are recklessly granted and the control of these funds is either bad or not existing. Without reforms, future controversies between the strong and the weaker EU countries are imminent. Quite sure, this would be completely contrary to the idea of a European integration. The EU Commission has to lead by example and present an authentic austerity budget for the years 2014-2020. And on the expenditure side, it must create more efficiency, says von Hohenhau in his function as President of the Taxpayers Association of Europe.

Munich/Brussels, November 23, 2012

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