Green Budget Europe
ENVIRONMENTAL FISCAL REFORM
IN THE EUROPEAN SEMESTER
Putting resource efficiency back on the agenda?
24 November 2014 · Brussels · Friends of the Earth Europe
EFR – key for the European Semester to deliver
Outline
The European Semester: Does it matter?
 Role of resource efficiency in the European
Semester
Hook or much ado about nothing?
 Critical assessment of 4 EU Semester cycles
Recommendations
 How could a greening of the European
Semester contribute to a more sustainable EU
EFR – key for the European Semester to deliver
The European Semester –
Does it matter? ?
Europe 2020 strategy & Fiscal Policies
Europe 2020 five headline targets
Europe 2020 Integrated Guidelines (IG)
Macro-economic
surveillance
National level
EU level
Thematic
surveillance
National
Reform
Programmes
Stability and
Growth Pact
Fiscal
surveillance
Stability and
Convergence
Programmes
Commission’s Annual Growth Survey
EU annual policy guidance and recommendations
EU flagship initiatives and levers
Rising labour costs
Labour costs have continually and visibly risen:
Labour costs
manufacturing industry
1969–2004
in €/h (2010)
EFR – key for the European Semester to deliver
Falling commodity prices
Overall, commodity prices have fallen since the beginning of the
industrial revolution:
Economist „Metal-Detector“:
Industrial metal-index
1845–2011
(1845 = 100%)
EFR – key for the European Semester to deliver
TELL ME….
…what you tax and what
you spend,
and also what you don´t
tax and don´t spend and I´ll tell you what
your true objectives are!
Dr. Anselm Görres, GBE President
EFR – key for the European Semester to deliver
RATIONALE:
price = strongest market signal & driver for changes and
efficient allocation of resources
Increase taxes on activities
harmful to the environment
Reduce taxes on activities
not harmful to the
environment, e.g. labour
Tax what you burn….
not what you earn
Taxes
Subsidies
Environmental
Fiscal Refom
(EFR)
Tradable
permits
Border
tax
Adjustments
EFR – key for the European Semester to deliver
fees
Environmental Tax revenue in % of GDP
Source: Eurostat 2013
EFR – key for the European Semester to deliver
Environmental Tax revenue in % of GDP
Denmark: 4,1 %
The Netherlands: 3,5 %
Slovenia: 3,4 %
Spain, France, Lithuania,
Romania and Slovakia:
below 2 %
Source: Eurostat 2013
EFR – key for the European Semester to deliver
Hook or much ado about nothing?

A critical assessment of 4 Semester cycles
CSR assessment 2012-2014
2012
2013
2014
Tax Shift /
implement green
taxes
12
11
8
CZ, ES, IE,
HU, IT, LI, LU,
LV
Environmentally
harmful subsidies
0
2
3
BE, FR, IT
8
17
Energy
Source: European Commission and Green Budget Europe
EFR – key for the European Semester to deliver
Implementation of CSRs 20102012
Weaknesses


Democratic legitimation

European and national Parliaments have a very weak role

Consultation of CSOs, MoE, regional decision makers!
Enforcement



Visibility



Low political priority regarding green taxes, 2030 “targets”
Deliver robust data! CEPRiE
Communication between Ministries, Services other MS?
FRE-communicate! contra EU jargon
Implementation

Strong sectoral lobby

Best practices and front runners
EFR – key for the European Semester to deliver
15
Green Budget Europe activities
Developing alternative CSRs
 Lobby European Commission (Sec Gen, Cabinets
DG ECFIN, ENVI and CLIMATE), at Hearing (EP),
Green New Deal WG (EP), Member States (EESC),
ESOs
 European Commission Experts Group
 Monthly meetings with environmental NGOs in
Brussels
 Get involved in the National Reform Programmes

EFR – key for the European Semester to deliver
EFR – key for the European Semester to deliver
EFR – key for the European Semester to deliver
Recommendations
Recommendations

Stop thinking in dichotomies
 Europe
 EFR

2020 versus fiscal surveillance
is part of the solution!
Climate and energy scoreboard and indicators

deepening or broadening?
Assess CSR implementation via cohesion
policy
 Enhance process: Strong CSO’s involvement

EFR – key for the European Semester to deliver
CONTENT:
 Raise environment and resource taxes  10% of total
taxes
 Member States should develop a concrete strategy by
2015 on how to phase out Environmental Harmful
Subsidies by 2020
PROCESS:
 EP needs to get involved in the decision making process
 CSRs should deliver on all Europe 2020 targets with
strong CSO’s involvement
EFR – key for the European Semester to deliver
T H A N K Y O U!
Dr. Constanze Adolf
Director Brussels Office
EFR – key for the European Semester to deliver
Rue du Trône 4 • 1000 Brussels
T: +32 25 88 57 65
M: +32 486 66 65 79
constanze.adolf@green-budget.eu
www.green-budget.eu