European Election Program, 9th European Parliament 2019, Finance and Economy

European Election Program

Program of the Alternative für Deutschland for Election

     of the 9th European Parliament 2019

Finance and Economy

4.2 Business Taxation in the EU

One of the problem areas of global financial policy is the insufficient prevention of tax fraud and tax embezzlement. The AfD is therefore committed to the ending of illegal procedures with the help of the OECD. For that, the EU is not competent.

To avoid shifting of profits, states must alter their double taxation agreements with Germany. The national states are competent to manage tax agreements and negotiate with the OECD. We reject corresponding efforts to involve the EU in double taxation agreement negotiations. We reject a harmonization of business taxes driven by the EU on an apportionment basis as well as by tax assessment. Since the abolition of exchange rates within the Eurozone, countries can no longer compensate for trade imbalances. The AfD previously warned of doing away with national tax authority as an instrument of competition. The decisions of a country to compensate for disadvantages of location by means of reduced tax assessment are for countries with low economic performance indeed necessary for survival. We support a financial transactions tax should it be introduced and received by the national states in all trade centers, including those external to the EU. Otherwise, it will amount only to a displacement of trade activity.

4.3 EU Finance – Cask without a Head

The AfD decisively rejects the EU Commission’s proposal to increase the multi-year financial framework (MFR) from 192 to 1,279 billion euros for the years 2021 to 2027. In regards the EU’s shrinkage with the exit of the net contributor Great Britain, this would be absurd. Additionally, for the first time a special asset shall be financed with 28 billion euros for “globalization, solidarity fund and flexibility instrument”.  Germany’s EU contribution would then climb from the present 26 to 40 billion euros. That would be an increase of Germany’s portion of EU financing from the present 20 to then 24%.

The AfD rejects the expansion of the EU budget. Penalties imposed and received by the EU are to be forwarded proportionately to the member states.

[Translated by Todd Martin]

European Election Program, 9th European Parliament 2019, Finance and Economy

European Election Program

Program of the Alternative für Deutschland for Election

     of the 9th European Parliament 2019

4. Finance and Economy

…According to the established judgment of the Federal Constitutional Court, the EU is not a state. Thus neither the Basic Law [Grundgesetz] (Budget Reservation of the Parliament, GG Art. 110) nor the EU treaties (with constitutional order) permit EU taxes: As a loose union of states, the EU presently has no tax authority of its own and therefore may raise no “EU-taxes”. The AfD gives a decisive refusal to efforts, especially from the French side, to alter this. This would sap the budget authority of the national parliaments and clearly over-exerts the EU’s legitimacy.

We especially reject taxes which serve exclusively to finance the EU budget. The EU should finance itself like a club, simply out of contributions from its member states according to their economic power. The tariffs shall be raised by the member states and should also flow into their budgets. Any EU taxation competence stokes the pressure for the EU to become a self-standing state. We therefore decisively reject the proposal to reform the EU resource system so that the EU obtains access to financial sources independent of the contributions of the member states. As such financial sources will be presently mentioned plastic taxes, diesel taxes, proceeds from the emissions’ management, business taxes, financial transaction taxes or even the EZB’s coinage profit. The EU can never be allowed to raise taxes. The AfD demands extensive expenditure cuts instead of a superfluous EU finance ministry.

The EU’s usual practice of issuing a seven year budget plan, and thus with de facto binding effect for the national parliaments over a [5 year] EU election period, undermines the national budget authority. Thus budget planning will be limited to the respective election period of the EU parliament. The AfD demands that the German portion of EU expenditure and income be yearly adjusted in the federal budget.

[Translated by Todd Martin]