Commission's Treaty Obligations Unmet According to Court Decision
In Bremen, Germany, the proposed Training Levy Bill has sparked controversy, with the Bremen Chamber of Commerce voicing concerns over its constitutionality. The bill, yet to be fully detailed, is a common subject of scrutiny in Germany, as levies are typically assessed for compliance with constitutional principles.
The Chamber of Commerce's reservations centre on the bill's legal basis and constitutionality. They question Bremen's competence to impose such a levy, fearing potential conflicts with federal laws or constitutional limits on taxation powers. The levy is also seen as potentially contravening principles of tax law or business regulation, such as fairness, proportionality, and non-discrimination, making it contestable in court.
Moreover, the Chamber expresses concerns about the bill's lack of clarity regarding financial responsibility for training measures and its potential for imposing new financial burdens on businesses without proper legal authorisation. These concerns revolve around whether the levy aligns with constitutional tax or administrative law and whether Bremen has the authority to enact such a measure independently.
The bill's failure to uphold the principle of legal certainty, by delegating important decisions to yet-to-be-issued regulations, is another point of contention. The Chamber also argues that the bill is disproportionate and that the collective use of the collected funds is not sufficiently guaranteed.
Constitutional law expert Christian Waldhoff from Berlin has characterised the bill as "politically unwise" and "incompatible with constitutional requirements." In his review, Waldhoff identified several legal flaws, including the bill's violation of the constitutional requirement for a homogeneous group liable to pay the levy.
The Bremen Chamber of Commerce, vehemently opposed to the project, has commissioned Waldhoff's opinion. If the majority of the members of the House of Representatives cannot be persuaded and the law is passed on March 23, the Chamber is preparing legal steps. On March 8, 2023, the Chamber will present the legal weaknesses identified by Waldhoff in the Economic Affairs Committee.
In light of these concerns, Matthias Fonger, CEO of the Chamber of Commerce, has announced persuasive work to prevent the wrong decision from being made, while Eduard Dubbers-Albrecht, President of the Chamber, has labelled the law as unfocused, bureaucratic, and legally questionable.
The suitability of the Bremen draft is partly doubtful, and there is a lack of necessity for the training levy, according to the Chamber. The tax rate in the draft is not legally determined nor sufficiently predictable, and the group of taxpayers selected by the draft arbitrarily excludes certain public training establishments from taxation. The tax rate is also based on cost positions that are largely within the decision-making power of the Senate and the administrative board of the fund.
As the debate continues, the Bremen Chamber of Commerce and constitutional law experts strive to ensure that any decisions made regarding the training levy are in line with the rule of law and protect businesses from potentially unlawful financial obligations.
- The Bremen Chamber of Commerce, in collaboration with constitutional law expert Christian Waldhoff from Berlin, has identified several legal flaws in the Training Levy Bill, labeled it as "politically unwise" and "incompatible with constitutional requirements."
- The Chamber's concerns revolve around the bill's potential conflicts with federal laws, constitutional limits on taxation powers, fairness, proportionality, non-discrimination, legal certainty, and lack of clarity regarding financial responsibility for training measures.
- If the House of Representatives does not change its mind and passes the bill on March 23, the Bremen Chamber of Commerce is prepared to take legal steps to challenge the law, presenting the legal weaknesses identified by Waldhoff in the Economic Affairs Committee on March 8, 2023.
