I would like to propose an alternative chapter for “Finances”. I wrote this in collaboration with participants of the Jitsi meeting on “Finances” (mind you that the coordinator of this chapter was not present so it is a bit of a rogue proposal). When writing this, I have scrapped this chat of ideas as well as various European pirate parties’ economy & finance campaign programs and added some of mine.
I would appreciate it if you considered it, helped to further develop it or just told me your opinion (sometimes it might seem a bit repetitive so I am open to improvements).
Alternative Proposal: CEEP 2024 Economy & Finance Program
Preamble
Our economic program aims to support sustainable economic growth focused on long-term development, broad improvements in quality of life, and fostering a competitive, fair, and inventive economic environment. In this regard, we believe it is necessary to consider a broader set of economic metrics besides mere immediate gross productivity (GDP). Such measures must capture the development of long-term economic opportunities, well-being, environmental and social sustainability, and successful collaboration across the whole EU.
Taxation
The tax mix should be based on establishing an environment of fully internalized externalities of economic activities to cultivate an entrepreneurial environment and a long-term well-developing society. To achieve this, we propose the following points: Moving a larger part of the tax burden from labour to capital with a particular focus on a higher levy on short-term investment and fast capital reallocations (especially across borders). To facilitate this, tax harmonization across European jurisdictions should be further developed. This should include targeting strategic capital allocation for tax optimization, tax evasion, and intentional obscuring of corporate structure, and business models of companies. There should be a larger application of the principle of subsidiarity in taxations focusing on empowering local communities’ decision-making and interests regarding their local tax structure together with establishing an all-European harmonization framework (yet not unification of tax rates or tax base definitions, only framework of the shared approach).
Competitive Economic Environment
A transparent, fair, and harmonized economic environment is the core of a healthy developing economy. The economic environment should ensure the prohibition of a high concentration of market power and instead focus on SME development. An example of a policy supporting SMEs is a minimal untaxed revenue for every business.
Economic policies must support entrepreneurship with a particular focus on true start-up ventures and innovative investments. True start-ups encouragement needs a supportive environment, accommodative tax framework, institutionalized help with legal requirements, and appropriate support of knowledge sharing (via antitrust laws, supportive patent laws and similar).
Economic policies should discourage long chaining of production transferring value-added into the final destinations and thus not leaving profits there where the value was created. Leaving resources there where the value is created will support local communities and reinvestment for further long-term economic development.
Financial Markets and Multinational Corporations
Regulation, supervision, and taxation of the financial markets should focus on investment into long-term development strategies with local reinvestment of profits and further creation of local opportunities (profits should be invested there where they are made at each stage of production). The environment should deter financial dominance, capital concentration, and for-profit short-term reallocation. For immediate profit, short-term and speculative investments should bear heighten disincentives and be under stronger expectations on transparency of motivation (against for-profit tax optimization), business models, and risk management.
National and Local Government Debt
We should help to progressively move away from debt financing of governmental expenditures beyond long-term investment projects. Ultimately, issuing government debt should be allowed only with a direct connection to a particular investment project including a direct repayment strategy of the debt in connection to the concrete project.
European Economic Integration
The next steps of European economic integration should focus on nationally adjusted European minimum labour wage to support labour mobility, equality, and broad economic development of all European regions. Further, there should be continued support for the economic development of physical and institutional infrastructure, particularly of cross-border regions.
Principles of International Trade (mostly unchanged from the previous proposal)
Pirates stipulate that in all negotiations of the European Union on trade agreements the following conditions must be met: The European Parliament must ratify the treaty and the treaty must be negotiated to uphold the following principles. The ultimate goal of international trade agreements is the positive development of all involved parties. There is comprehensive access to information and public hearings during the negotiating process. The proposed treaty includes respect for freedom of the Internet, social and civil rights, and sustainable social and economic development. The interests of small and medium-sized enterprises must be considered.
).