💸TIME TO TAX THE RICH

Good morning! Only two things in this life are certain: death and taxes. Or at least that’s what Benjamin Franklin came up with once…

But seriously, this week, we’re here to talk about money. With challenges and crises coming out of Europe’s ears, one of the key tools immediately available is money. More specifically: the taxation and investment of existing wealth. Check our latest opinion piece to see why Europe can’t face extraordinary times with ordinary fiscal rules. Now is not the time to tighten belts but to beef up the public muscle!  

🔔 EXTRAORDINARY TIMES CALL FOR ACTION  

BACK TO THE DRAWING BOARD – These are extraordinary times. The post-Cold War world order is unravelling, forcing Europe to strengthen its strategic autonomy. All analysts agree: For that, Europe needs investment. We cannot navigate extraordinary times with ordinary fiscal rules, nor with austerity, which creates infinitely more costs than it saves.  

GERMANY SIGNALS SPEND – “Once a beacon of [fiscal] frugality”, even Germany has recognised this. This week, its current parliament (backed by conservatives, socialists, and greens) voted to loosen its constitutionally enshrined ‘debt brake’ to allow more spending on defence, infrastructure, and climate action! 

TIME FOR EUROPE TO DECIDE FOR EUROPE – For years, the EU’s fiscal rules have been on pause: first due to the pandemic, then the economic fallout of Russia’s invasion of Ukraine. This has allowed member states to ramp up public spending. But now, European leaders are again freezing these measures to enable more military spending. Yet, if these rules are continually suspended, are they truly fit for the 21st century – and the new challenges that are coming our way? 

OPPORTUNITY COST, PRECIOUS? None of the existential challenges we face – the climate crisis, biodiversity breakdown, social inequality, geopolitical instability – can be tackled without public investment. In 1990, Carl Sagan already warned that the $10 trillion the U.S. had poured into the Cold War could have been spent on a greater threat to Americans’ security: climate change. Today, as Europe re-arms, the same question has become impossible to ignore. Even Germany’s intelligence services have warned that climate-driven conflicts and disasters will pose a major threat to the EU’s survival over the next 15 years. 

BUT WHAT MAKES US SECURE? ‘Security’ is not limited to the military sphere. Climate change, biodiversity loss, and social inequalities are also increasingly geopolitical threats. And their consequences are already very real. In just two years, extreme weather events have cost the EU €162 billion. Even the World Economic Forum identifies environmental threats as the most severe global risks over the next decade. Without concerted action, such threats will only continue to grow.  

HERE’S THE QUESTION – The real question isn’t if we should invest but how and where. We call on EU leaders at the ongoing European Council to seize the opportunity to fundamentally modernise fiscal policy, ensuring that Europe is equipped to tackle the poly-crisis we face. The path is clear, and it also includes strengthening the LIFE programme (if you know, you know). 

💸 TIME TO TAX THE RICH 

POVERTY BY DESIGN – The years of austerity following the global financial crisis of 2008 marked an unfortunate turning point. Because “money doesn’t grow on trees” to bring down debt, we were told that we needed to “tighten our belts” by reducing public expenditure (on schools, hospitals and the like) and increasing taxes on regular people. Repeat: On regular people. But not on corporations. Not on the super-rich. Ignoring where the money was to fulfil an ideological mission of squashing the middle class and driving record levels of poverty and inequity. All while the rich and super-rich became even richer.    

THE HOARDERS OF OUR WEALTH – We see the result of this in today’s Europe, with high and growing levels of poverty and a corporate class that avoids not only paying its fair share of tax as it continues to profit off public money; but whose bullish lobbies have also sidled up to policymakers and pretty much started drafting the laws that affect them directly. So where does this lead? Von der Leyen might say “simplification” or “competitiveness”. We say “deregulation” and a dangerous concentration of power. We’ve previously written about Musk and the tech-bro takeover: No European version, please! 

DEREGULATION MAKES THE RICH RICHER – To make Europe resilient to the emerging threats facing us, policymakers need to acknowledge a simple reality: we need regulation. It is our strength! It keeps economies and societies functional and fair and stops them from descending into chaos. Let’s not forget: The financial crash of 2008 was triggered by extensive deregulation, which led to the collapse of entire industries and destroyed countless livelihoods. One regulation we now urgently need? A fair tax on wealth! 

🥇 MONEY TO INDUSTRIES 

STEELING THE SPOTLIGHT – The EU Commission’s “clean” industrial saga kicks off with the steel and metals plan. The document is a clear attempt to apply the EU’s new mantra: “competitiveness within decarbonisation”. The outcome? Bold in words, weak in action. While the plan talks about electrification and circularity as key to cutting costs and transforming the heavy metals sector (🤘), it fails to set clear targets to make sure industries actually follow through. 

SUBSIDIES CAN’T REPLACE POLICY – Instead of enforcing strong targets and measures, the plan leans heavily on state aid to drive industrial transformation. But let’s be real: this hasn’t worked before. Major steelworks have pocketed billions in public funding while still dragging their feet on climate action. If taxpayers are footing the bill, every euro of public money must come with strings attached: a real commitment to phasing out fossil fuels. 

GREEN STEEL: DO OR RUST – Right now, half of Europe’s steel production still relies on coal, and outdated factories desperately need investment. The transition needs to happen now, with: 1) No more investments in coal-based technologies. 2) A major boost of steel scrap recycling. 3) Full support of renewables-based production. 4) Workers fully supported in the transition. Time to turn talk into action! Read our joint report on the steel transition!

🔥 BONFIRE OF COMMON SENSE CONTINUES 

REGULATORY VANDALISM IN AGRICULTURE – Following on from last year’s rollbacks in environmental policies within EU agriculture (common sense rules that protect the nature on which farmers depend), the EU Commission has this week gone further. Under the predictable guise of “simplifying” things for farmers, it now wants to erode environmental protections further still. 

FARMERS NEED NATURE! Meanwhile, farmers are struggling with extreme weather, poor soil health, and nature collapse – all of which threaten farmers and, by extension, us. Instead of supporting sustainable farming, it continues to fund harmful practices and direct payments that mostly benefit the largest landowners. If the EU is serious about supporting farmers, it must strengthen environmental and climate policies in the CAP – not weaken them. We repeat: it’s time to invest in farmers’ resilience!  

♻️ WORLD RECYCLING DAY 

PREVENTION IS BETTER THAN CURE – Recycling is good, but waste prevention is better, and the responsibility shouldn’t fall on individuals alone. We all know the problem is systemic! This World Recycling Day, we are reminded that the best way to tackle our waste crisis is by using fewer resources and designing products to last: durable, reusable, and repairable. The bonus? Reducing, reusing and repairing means energy savings, innovation, and quality local jobs! 

YET… BIG BRANDS promote recycling to shift the responsibility to you and me while they keep producing and polluting as usual. The plastic industry is a handbook case, with the world’s major plastic polluters suggesting recycling is the answer. But there are better ways. It’s time for our leaders to push back against the scourge of single-use plastics and finally solve the EU’s packaging waste crisis. A new report by the Rethink Plastic Alliance reveals how national and local governments can make the most of the opportunities provided by these new rules. 

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By: Ben Snelson. Special thanks to the EEB’s editorial team: Alberto Vela, Ruby Silk and Roi Gomez. Editor: Christian Skrivervik