TAE: EU Bureaucracy is at Least as Harmful as Excessive Tariffs!
The Taxpayers Association of Europe views current developments with great concern. Companies continue to suffer from excessive EU bureaucracy, which appears to have lost none of its momentum under the new von der Leyen II Commission. Added to this is the EU customs deal with the US, which, while representing "damage limitation" compared to the tariffs announced by Trump, will still result in a massive burden on our economy and consumers.
The Taxpayers Association of Europe views both developments with great concern.
On the EU customs deal with the USA
On July 27, the EU and the US reached an agreement on the tariff dispute. This includes a 15% tariff on most EU exports to the US, which will also apply to vehicles, vehicle parts, semiconductors, and pharmaceutical products. However, tariffs on aluminum and steel threaten to remain unchanged at 50%. Certain so-called "strategic products," such as aircraft, semiconductor equipment, chemicals, generics, agricultural goods, raw materials, and critical raw materials, will be exempt from tariffs on both sides.
In addition, according to the deal, the EU is to purchase $750 billion worth of energy from the US, make $600 billion in additional EU investments in the US, and purchase an as-yet-unspecified amount of US military equipment. However, a legally binding document has not yet been finalized.
The Taxpayers Association of Europe is astonished by the financial commitments of this magnitude: €1.35 trillion for energy purchases and direct investments, plus additional spending on the purchase of US military equipment of an as yet unknown amount. This is because the EU Commission itself does not have sufficient resources. This means that these funds must either come from the member states or be provided by the private sector. In this respect, Commission President von der Leyen may have miscalculated. Initial resistance is also emerging from member states, such as France. The deal is therefore not yet a done deal.
The media recently reported that President Trump is postponing the start of the tariffs by a week. Without wishing to further evaluate the tariff deal, it must be acknowledged that nothing seems truly predictable or certain under Trump. This is deeply disturbing behavior for businesses. Companies need predictability and reliability to be able to adapt to new conditions. They must be able to trust that political agreements will stand the test of time and are not constantly thrown out the window.
So, the higher tariffs under Trump are coming. It's also clear that this won't leave us in Europe unscathed. Higher tariffs mean higher costs; they impact prices and thus also inflation.
That's why it's important now to take the ability-to-pay principle into account. We need to ensure that the burdens are moderate, for both consumers and businesses. Therefore, everything must be done at national and, in particular , European level to mitigate these increased burdens. Relief is needed across the board, from special depreciation allowances and tax cuts for companies to tax cuts for private individuals. After all, everything companies invest must first be earned. And consumers must be put in a position to be able to pay higher prices in the first place. This is important because weaker sections of the population will be particularly affected by higher prices. Redistribution and state subsidies are not suitable for a lasting solution.
The EU's goal must therefore be to do everything in its power to ensure prosperity in Europe. The key lies in sustainable economic growth. This requires the EU to create the appropriate framework conditions for growth. There's been a lot of talk about this, but now it's time to act!
Reduce bureaucracy now!
A key to improving the framework conditions, which the EU itself holds in its own hands, is the reduction of bureaucracy and the removal of trade barriers.
Trade barriers have a similarly damaging effect as tariffs. The International Monetary Fund's (IMF) study " Europe's Integration Imperative " from June 2025 concludes:
" The EU has made significant progress freeing up trade between its member states, but plenty of obstacles remain. High trade barriers within Europe are equivalent to an ad valorem cost of 44 percent for manufactured goods and 110 percent for services, IMF research shows (2024). These costs are borne by EU consumers and companies in the form of less competition, higher prices, and lower productivity."
Excessive bureaucracy creates trade barriers between EU countries, such as tariffs of 44 percent for goods and as high as 110 percent for services. This means that existing EU trade barriers have almost three times the burden of the 15 percent US tariffs!
This is precisely where we should start. Every EU Commission has wanted to address this issue, but nothing has really happened. Quite the opposite!
According to the Draghi Report, the EU Commission adopted around 13,000 legislative acts between 2019 and 2024, almost four times as many as the US (3,500) in the same period. And this trend appears to be continuing in 2025.
According to EUR-Lex, 1,364 EU legal acts were adopted between January and the end of July 2025 alone! The Commission has a hand in 934 of these, meaning it is responsible for the lion's share!
Source: https://eur-lex.europa.eu/statistics/2025/legislative-acts-statistics.html?locale=en#
The EU Commission von der Leyen I and II had almost five and a half years to tame the bureaucratic monster. Instead, they continued to feed it. The huge number of laws is paralyzing and overwhelming the economy!"
This has little to do with the promised reduction of EU bureaucracy. On the contrary, EU bureaucracy is becoming a high-speed train, accelerating relentlessly. If we don't stop this, we'll drive Europe into the wall at full speed.
Stop EU Bureaucracy Initiative
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Excessive bureaucracy threatens the success of the EU. The Taxpayers Association of Europe (TAE) has therefore |
We call on the European Union to take concrete measures to reduce excessive bureaucracy. Excessive bureaucracy burdens businesses, slows innovation, and undermines citizens' trust in the EU. We demand effective simplification of administrative procedures, more transparent regulations, and greater use of digital solutions. Together, we can build a more dynamic and efficient EU that better meets the needs of people and businesses.
These include:
- The existing EU bureaucracy should be reduced by 20%, both quantitatively and qualitatively, for all citizens.
- For every new European regulation, its consequences and costs must be presented in a qualitative impact assessment.
- Any new regulation at European level must offer clear added value compared to national regulations.
- Every new regulation should be subject to an evaluation after two years, which must be completed within at least one year. If the evaluation reveals a negative deviation of more than 15% compared to the impact assessment, the regulation must be revised and resubmitted. It must be ensured that amending or repealing the regulation does not cause greater harm than maintaining it.
- The Commission should appoint a Special Representative for Bureaucracy Reduction who would report specifically to EU citizens.
Brussels/Munich/, August 2, 2025
