Thursday, June 4, 2020

Peter Boehringer, May 28, 2020, EU Reconstruction Funds

Peter Boehringer
EU Reconstruction Funds
German Bundestag, May 28, 2020, Plenarprotokoll 19/163, pp. 20309-20310

[Peter Boehringer is an Alternative für Deutschland Bundestag member from Bavaria. He is currently chairman of the Bundestag budget committee.]

Herr President. Honored colleagues.

Let us attempt, after this staccato of planned-economy, EU-speak, to yet again dip into reality and the state of law.

            Falko Mohrs (SPD): For that, we need however another speaker, and not you!

Macron wants to become more powerful. For that, he needs the EU and a Paymaster Germany. It is absurd that we here today in any way discuss the Merkel/Macron proposal, since, according to Article 311 AEUV, a credit financing of expenditures is forbidden to the EU – period! At this point, this debate could and must come to an end!

As a non-state, the EU demonstrably has no taxation or indebtedness right of its own; the EU as  a union of states lives exclusively on the budget allotments of the member states. Borrowing by the EU cannot be simply re-defined by a conjuring trick into a new form of resources, as is evidently being planned here.

Older colleagues might now object: But we did that already in 1975. Yes, there was then in fact a crisis instrument by the name of the Community Loan Mechanism – Gemeinschaftsanleihen der EWG – by means which was in fact paid out over 20 years a few billions to the then, as now, usual bankrupts: Italy, France, Greece. “Balance of payments aid” as it was then euphemistically called, when Rome and Paris yet again made the beggars’ pilgrimage to Brussels to receive some millions.

It was simply dumb that this option terminated in 1999. With the euro monetary union, the no-bailout clause of Masstricht entered into effect; today, Article 125 AEUV, with constitutional authority; it is so now.

            Alexander Lambsdorff (FDP): You still do not understand it!

Balance of payments aid to the benefit of EU member states, financed by EU credit, was then explicitly forbidden.

            Alexander Lambsdorff (FDP): No!

And it is, ja, quite logical: What shall then happen with the planned EU loans if some Italian at sometime is bankrupt or unwilling to pay? Shall the EU, itself incapable of amortization, apply for insolvency, because the Italian cannot make his amortization payment? No, naturally would Germany pay the Italian portion. The government’s assertion of a partial indebtedness liability is pure theory.

That is euro bonds through the back door; or is it the front door? Did not Frau Merkel say in 2012: “No euro bonds, as long as I live”?

The proposal is a nightmare, not only in legal terms but also in regards the budget. The reconstruction funds will be a new shadow budget in no man’s land, for which however Germany will be fully liable. You can say partially liable – anyway, we are liable.

Statistically, the initial 500, since yesterday now already 750 billion euros, will be credited to no one, neither to the EU nor Germany, although the billions of credit will, ja, actually be taken up. Angela and Ursula in Wonderland! The 750 billion euros will be poured out over the beloved for all possible Green/left ideological projects – which will occur with security – yet naturally first after the withdrawal of such usual sums as the billions for administrative costs and corruption seepage.

In such a circumstance, budget clarity and national budget law are only a distant memory. A reference to a formal participation by the Bundestag as per the so-called limited individual authorization [Einzelermächtigung] is of no help; we have already plainly heard that. With an indebtedness of 750 billion euros, with payments to 2058, certainly nothing is anymore limited, neither in quantity nor in time.

            Franziska Brantner (Greens): We have named the payments exactly!

The budget law, as the Bundestag’s prerogative and perhaps the last bastion of German sovereignty, is anchored in Article 110 of the Basic Law [Grundgesetz]. The Merkel/Macron proposal disposes of that. A limited individual authorization of 750 billion euros is a bad joke and like a dam breaking. Once this dam is broken, then will Brussels ever again receive giant limited individual sums, to the burden of German solvency, and grandiosely distribute it in southern Europe and France. Be it in the realm of trillions, that is for Herr Jung, who follows the Jung Doctrine, still a limited individual authorization. That is absurd.

Ladies and gentlemen, only states are allowed to raise taxes, only states can incur debts, because only states can also again pay them back out of future tax revenues. The EU is however, according to the highest legal pronouncement, not a state – still not. According to the Lisbon decision of the Constitutional Court in 2009, it can never become one without a referendum on the surrender of German statehood. For years and decades, this referendum is however withheld from the Germans.

The presented proposal presumes [präjudiziert] the highly illegal situation of an EU state, for which there would never be a democratic majority in Germany.

            Franziska Brantner (Greens): Certainly not agreed.

With this proposal, Merkel and Macron clearly depart from the grounds of the free, democratic fundamental order. 

It is the duty of this Bundestag to stop the march, in full frustration of the law, to the benefit of an illegal, federal EUropa state. We ought not again leave that to the Constitutional Court.

Hearty thanks.




[Translated by Todd Martin]