European Union – On the Validity and Scope of Macro-Coherence

Abstract

The scope of coherence, as a ground justifying measures interfering with the fundamental freedoms, is limited by the concept of macro-coherence. This article analyses the origin and rationale of macro-coherence and how the concept relates to the balanced allocation of taxing rights. The authors argue that it should be abandoned. If not, this could reignite discussions about fundamental issues of EU tax law, such as most-favoured-nation treatment and the obligation of Member States to conclude tax treaties.

Keywords: European Union, macro-coherence, balanced allocation of taxing rights, most-favoured-nation treatment, pension payments, exit taxation

JEL Classification: K34