EP considers budget proposal insufficient to meet Europe’s challenges

The budget accounts do not add up

The MFF co-rapporteurs point to a fundamental flaw in the Commission’s plan: with a budget representing only 1.26% of gross national income, including 0.11% earmarked for debt repayment of the NextGenerationEU instrument, and taking inflation into account, the EU risks being paralysed. They warn that the draft budget does not provide sufficient funds for key priorities such as competitiveness, cohesion, agriculture, defence, adaptation to climate change and the investment needed for a sustainable economy that works for all. The starting point of the proposal reveals a striking lack of ambition. “However much it tries to present itself otherwise, what we have is a real freeze on investment and spending, along with the repayment of the NextGenerationEU debt. It is the status quo, precisely what the Commission has always said is not an option,” say the co-rapporteurs.

“The current multiannual financial framework has clearly demonstrated the risks of putting NextGenerationEU interest repayments on a par with programme budgets. This puts enormous pressure on key priorities and ultimately leads to cuts. You cannot build a stronger European budget by repeating the mistakes of the past”, stressed co-rapporteur Siegfried Mureșan. “We will not allow the funding of our key priorities to be compromised by the NextGenerationEU rebate”, said co-rapporteur Carla Tavares.

Key programmes at risk

Parliament has already expressed serious concerns about the proposed structure, warning that grouping consolidated programmes into “mega umbrella funds” could jeopardise effective policies that have delivered tangible results and contributed to improving living conditions. Carla Tavares insisted that “the EU is based on solidarity, as well as economic, social and territorial cohesion” and stressed that “upward convergence is an essential feature of the European project”.

MEPs are particularly concerned about the possible weakening of the role of regional and local authorities in the management of funds, and the risk of clashes between farmers and regions, or between regions and national governments.

Siegfried Mureșan stressed: “We will not approve a budget that promotes fragmented national plans, unconnected to the common objectives of the Union. Europe needs a shared vision, not 27 different shopping lists. A real European budget cannot be reduced to the lowest common denominator of national preferences.

Democratic oversight at risk

The co-rapporteurs of the MFF declare themselves “very alarmed by certain elements of the proposal that could relegate the role of the European Parliament, the only directly elected institution with legislative functions and full budgetary and control powers”.

They stress that any new performance-based mechanism for accessing funds for Member States must have strong guarantees of parliamentary oversight and cannot circumvent democratic control over EU spending.

“The budget is not an ATM machine for the European Commission”, warned Siegfried Mureșan, and assured that he would strongly defend Parliament’s role in its oversight.

Carla Tavares stressed that “the proposed budget must be transparent and ensure that Parliament retains all its prerogatives in the allocation and control of funds, backed by a detailed budget structure that allows for effective oversight”.

Member States must respond on revenue

Sandra Gómez López and Danuše Nerudová, rapporteurs on own resources, said: “We welcome the Commission’s renewed efforts to break the current deadlock on own resources and to propose new ways to generate revenue for the EU budget. We take note of the new proposals, including a special tobacco tax, a resource based on the European corporate tax (CORE) and levies on e-waste and e-commerce. There is no longer any excuse for Member States not to agree on new sources of funding.

“Without a solid and diversified revenue base, including genuine new own resources, without competing with national budgets, the EU will not have the funds it needs.

Parliament is determined to act

The co-rapporteurs of the MFF concluded: “The Parliament is fully prepared to exercise all its powers to ensure that the next long-term budget lives up to the ambitions and challenges of the Union, and is subject to effective democratic scrutiny. We stand ready to engage constructively, but also with determination.”

More information: European Parliament