Presentation as General Rapporteur for the next EU budget, on solutions to avoid a social, climate and political crisis, to almost double the EU budget, while not asking 1€ more from national budgets.

2. A 750
BILLION €
RECOVERY
PLAN IS
HISTORIC
… BUT IT WILL
NOT SUFFICE

4. ON THE 11 OF MAY
BUSINESS
FEDERATIONS
ASK FOR A
RECOVERY
PLAN OF “UP TO
5% OF GDP
EVERY YEAR
UNTIL 2023”

5. ALAS, 750 BILLION €
OVER 4 YEARS, THAT IS
ONLY 1% OF GDP PER YEAR
SO, 1ST PROBLEM :
THIS RECOVERY PLAN IS TOO SMALL

6. WHEN THE COVID CRISIS
STARTED,
THE WORLD ECONOMY WAS
ALREADY A POWDER BARREL ...
LAST YEAR :
THE TOTAL DEBT IN THE USA
INCREASED BY MORE THAN
2 500 BN $
Source : Federal Reserve

7. ALSO IN CHINA, THE TOTAL DEBT IS SKYROCKETING

8. THIS IS NOT ONLY A
CONJUNCTURAL CRISIS
IT IS A CONJUNCTURAL TRIGGER
FOR A STRUCTURAL CRISIS

9. THE GREEN NEW DEAL IS OF COURSE INSPIRED
BY F.D. ROOSEVELT’S NEW DEAL
BUT FOR HIS NEW DEAL,
ROOSEVELT MULTIPLIED
THE US FEDERAL BUDGET
BY … 3 !

10. IF WE WANT TO AVOID A HISTORICAL
SOCIAL AND POLITICAL CRISIS
WE NEED A MASSIVE AND
SUSTAINABLE RECOVERY
SUSTAINABLE IN THE 2 MEANINGS OF THE WORD

11. 4 YEARS IS TOO SHORT
IN JAPAN, SINCE THE 1989 CRISIS,
EVERY TIME THE RECOVERY PLANS STOP
THE COUNTRY FALLS BACK INTO RECESSION

12. TO HAVE A
MORE MASSIVE
MORE SUSTAINABLE
AND GREENER
RECOVERY PLAN
WE HAVE TO UNLOCK THE NEGOTIATION
ON NEW OWN RESOURCES

13. WE CAN
REASSURE
MARK RUTTE :
NETHERLANDS
WILL NOT HAVE
1 € TO REPAY
THE DEBT WILL BE
REPAID BY OWN
RESOURCES

14. TO RECONCILE
THE FRIENDS OF
COHESION,
AND THE FRUGAL 4,
WHO
WANT TO BE THE
CHAMPIONS OF THE
GREEN DEAL
THE SOLUTION IS A
GREEN RECOVERY
FINANCED BY
OWN RESOURCES

15. We cannot forget the climate emergency
We just had the figures for May 2020 :
CO2 levels reached
417 ppm
The CO2 level rises today
3 times faster
than in the 1960s
Despite the economic crisis
the climate situation is getting worse
and worse

16. 1. NEGOTIATE A FINANCIAL TRANSACTION TAX
•IN SEPTEMBER 2011, THE EUROPEAN COMMISSION HAS PROPOSED A
DIRECTIVE TO CREATE A SMALL TAX OF 0.1% ON FINANCIAL TRANSACTIONS
•IN ALL OUR COUNTRIES, FOR BASIC NECESSITIES, EVEN THE MOST
VULNERABLE MUST PAY 5.5% VAT.
•BUT BUYING STOCKS ON FINANCIAL MARKETS IS TAXED AT 0,0%
•HOW CAN WE EXPLAIN TO CITIZENS THIS 0.0% RATE? ARE STOCKS AND
BONDS EVEN MORE ESSENTIAL TO LIFE THAN WATER OR FOOD?

17. DESPITE THE CRISIS
THE FTT CAN RAISE 57 BILLION € / YEAR
FOR 3 MONTHS, THE REAL ECONOMY HAS SUFFERED A LOT,
BUT FINANCIAL MARKETS ARE VERY ACTIVE
EVEN AFTER BREXIT AND IN A CONTEXT OF CRISIS,
A SMALL TAX BASED ON THE 2011 DIRECTIVE COULD
RAISE 57 BILLION € PER YEAR.
10 TIMES MORE THAN THE DIGITAL TAX.
IN 2011 THE EUROPEAN COMMISSION STATED THAT THIS
TAX CAN BE INTRODUCED IN LESS THAN 2 YEARS

18. 2. WE MUST ALSO FIGHT TAX COMPETITION :
75 BILLION € / YEAR
• 40 YEARS AGO, THE AVERAGE PROFIT TAXE RATE IN EUROPE
WAS AT 45%.
• IT WAS CUT BY 2 OVER 30 YEARS. IT FELL FROM 40 TO 19%.
• MEANWHILE, FROM ROOSEVELT UNTIL TRUMP, THE USA HAD A
STABLE PROFIT TAX AT 38 %
• AND EVEN WITH THE TRUMP TAX REFORM, THE PROFIT TAX
RATE REMAINS AT 24% IN THE US
• 24% IN THE US VERSUS 19% IN EUROPE. THERE IS ROOM FOR
AN EU TAX ON PROFITS.

19. A 5% SOLID CCCTB
COULD RAISE 75 BILLION € / YEAR
STARTING FROM THE STATUTORY RATES IN EACH COUNTRY, A
ROUGH CALCULATION SHOWS THAT, IN A FEW YEARS (IF THE
RECOVERY PLAN WAS SUFFICIENTLY STRONG AND LASTING TO
LIFT US OFF THE RECESSION), A 5% EU PROFIT TAX WILL BE ABLE
TO YIELD AROUND € 75 BILLION EVERY YEAR

20. WITH THESE 2 NEW OWN RESOURCES
WE CAN ALMOST DOUBLE THE EU BUDGET
… WITHOUT ASKING 1€ MORE TO THE BUDGETS OF MEMBER STATES.
THEY COMPLEMENT EACH OTHER WELL AND ARE RESILIENT IN THE FACE OF THE CRISIS:
THE CCCTB ( OR EU PROFIT TAX ) REVENUE TENDS TO DECREASE IN A TIME OF CRISIS,
WHILE THE FTT TENDS TO INCREASE

21. • NO COUNTRY ALONE WILL CREATE A SERIOUS FTT OR CCCTB.
THIS IS THE REAL ADDED VALUE OF EUROPE : TOGETHER WE CAN FIND MORE THAN 100 BILLION € EVERY
YEAR TO CREATE MILLIONS OF JOBS AND WIN THE CLIMATE BATTLE.
THESE 100 BILLION WILL NEVER BE MOBILISED IF WE DON’T UNITE.
• THESE 2 RESOURCES CAN BE POPULAR AS THEY WILL NOT BURDEN THE MOST VULNERABLE CITIZENS
AND THEY WILL NOT PUT MILLIONS OF YELLOW JACKETS IN THE STREETS