NEWS At a panel discussion on “The Future of the EU Budget” organised by the European think tank Bruegel in Brussels on November 15, 2016, FairTax researcher Margit Schratzenstaller argued for substituting a part of current EU own resources with sustainability-oriented tax-based own resources.
“Financing the EU budget by taxes on financial transactions or on flight tickets, for example, would contribute to central EU objectives as “smart, inclusive and sustainable growth” aimed at by the Europe 2020 strategy.” Said Margit Schratzenstaller.
In the discussion with Jens Spahn (Parliamentary State Secretary at the German Ministry of Finance) and Sascha O. Becker (Warwick University), Margit Schratzenstaller stressed three prerequisites for a successful introduction of tax-based own resources.
“First, they should be introduced within a revenue-neutral approach: Member States should reduce their contributions to the EU budget accordingly. Secondly, tax-based own resources should be introduced based on a remittance system: They should be levied by Member States which should transfer the revenues to the EU budget so that an own tax sovereignty for the EU is not required. And thirdly, tax-based own resources should be complemented by a GNI-based residual own resource so that in case of revenue shortfalls no debt needs to incurred at the EU level.”
Editor: Elin Andersson