2025

TWO: https://www.doi.org/10.31178/AUBD/2025.08

Abstract: There is broad consensus that the fiscal sovereignty of EU Member States is a fundamental principle underpinning the functioning of the European Union, a notion emphasized both in legal theory and in practice. It is important to note that Member States have not explicitly transferred fiscal competence—that is, the right to regulate these matters at the EU level—to the European Union. However, the exercise of fiscal sovereignty is subject to constraints imposed by European Union law and the case law of the Court of Justice of the European Union (CJEU).

This article examines the concept of fiscal sovereignty in the European Union, analyzes its limits as derived from both EU legislation and the case law of the Court of Justice of the European Union, and highlights the balance that Member States must strike between national fiscal autonomy and EU rules.

Keywords: fiscal sovereignty , fiscal policy, fiscal competence, positive integration, negative integration.