A recipe for a sustainable and legitimate new EU/EA fiscal instrument

14-04-2020

This note sets out proposals to find a more sustainable and limited new EU fiscal instrument that would be under the full control of the Member States. This would involve a Treaty change (under the simplified procedure) and agreeing on the modalities of a more effective and fairer tax base for EU companies benefitting most of the internal market, EU trade policy and the euro exchange rate (for companies established in euro area Member States) and use such proceeds to finance EU projects, such as the proposed new EU recovery fund. This note is provided as food for thought for EU policy makers in the spirit to broaden the debate to balance short term needs and long term interest of the EU as a whole.

This note sets out proposals to find a more sustainable and limited new EU fiscal instrument that would be under the full control of the Member States. This would involve a Treaty change (under the simplified procedure) and agreeing on the modalities of a more effective and fairer tax base for EU companies benefitting most of the internal market, EU trade policy and the euro exchange rate (for companies established in euro area Member States) and use such proceeds to finance EU projects, such as the proposed new EU recovery fund. This note is provided as food for thought for EU policy makers in the spirit to broaden the debate to balance short term needs and long term interest of the EU as a whole.