Tax policy convergence and EU fiscal state aid control

In search of rationality

Research output: Contribution to journalArticleProfessional

Abstract

The pending tax ruling constitute a new saga in the continuous political battle between the Member States and the European Commission about the limits of article 107 TFEU within the complex multi-level tax governance system of the EU. This article claims that the legal determination of these limits – as reflected in the distinction between general measures and fiscal state aids – cannot provide for a rational explanation concerning the balance of power between the Member States and the European Commission. Consequently, it cannot be maintained that the European Commission should merely monitor the limits of EU fiscal state aid control as defined by the Member States. Such an understanding is at odds with the prevailing neo-functionalist reality in which the European Commission is able to develop state aid policies in an independent way. This contribution reaches these conclusions on the basis of a combination of the legal and the political-economic traditions that study EU (fiscal) state aid control. It calls for more multi- disciplinary academic discussion about the desirable function and limits of EU fiscal state aid control.
Original languageEnglish
Pages (from-to)6-17
JournalEC Tax Review
Volume28
Issue number1
Publication statusPublished - 2019

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tax policy
European Commission
rationality
EU
taxes
balance of power
governance
Tax policy
Fiscal
Policy convergence
Rationality
State aid
economics

Cite this

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title = "Tax policy convergence and EU fiscal state aid control: In search of rationality",
abstract = "The pending tax ruling constitute a new saga in the continuous political battle between the Member States and the European Commission about the limits of article 107 TFEU within the complex multi-level tax governance system of the EU. This article claims that the legal determination of these limits – as reflected in the distinction between general measures and fiscal state aids – cannot provide for a rational explanation concerning the balance of power between the Member States and the European Commission. Consequently, it cannot be maintained that the European Commission should merely monitor the limits of EU fiscal state aid control as defined by the Member States. Such an understanding is at odds with the prevailing neo-functionalist reality in which the European Commission is able to develop state aid policies in an independent way. This contribution reaches these conclusions on the basis of a combination of the legal and the political-economic traditions that study EU (fiscal) state aid control. It calls for more multi- disciplinary academic discussion about the desirable function and limits of EU fiscal state aid control.",
author = "Cees Peters",
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journal = "EC Tax Review",
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Tax policy convergence and EU fiscal state aid control : In search of rationality. / Peters, Cees.

In: EC Tax Review, Vol. 28, No. 1, 2019, p. 6-17.

Research output: Contribution to journalArticleProfessional

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AB - The pending tax ruling constitute a new saga in the continuous political battle between the Member States and the European Commission about the limits of article 107 TFEU within the complex multi-level tax governance system of the EU. This article claims that the legal determination of these limits – as reflected in the distinction between general measures and fiscal state aids – cannot provide for a rational explanation concerning the balance of power between the Member States and the European Commission. Consequently, it cannot be maintained that the European Commission should merely monitor the limits of EU fiscal state aid control as defined by the Member States. Such an understanding is at odds with the prevailing neo-functionalist reality in which the European Commission is able to develop state aid policies in an independent way. This contribution reaches these conclusions on the basis of a combination of the legal and the political-economic traditions that study EU (fiscal) state aid control. It calls for more multi- disciplinary academic discussion about the desirable function and limits of EU fiscal state aid control.

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