Senior European Union officials are intensifying their demand for substantial new EU-level taxes to finance the bloc’s long-term budget, directly countering skepticism from the so-called “frugal” member states. The debate over new own resources dominated the informal meeting of European Affairs Ministers in Dublin on Thursday and Friday, centering on the Multiannual Financial Framework (MFF), a €2 trillion budget plan for 2028–2034.
Benjamin Haddad, France’s Minister for European Affairs, stated that the adoption of new own resources is an “absolute prerequisite” for approving the budget. He emphasized that the proposed package aligns with the European Commission’s initial proposal and would primarily generate funds from actors outside the EU.
Pressure has mounted since negotiations resumed following the summer recess. Last week, a gathering of frugal countries in Berlin saw them advocate for a reduced overall budget and express doubt that new own resources would yield significant revenue. These nations, comprising the EU’s largest net contributors, remain resistant to the ambitious spending plans championed by countries like France and Spain.
Fernando Sampedro, Spain’s Secretary of State for the EU, rejected the skepticism, arguing that the bloc faces challenges larger than in the past. “We cannot do more with less,” Sampedro said, calling for an ambitious budget backed by new own resources, joint debt, and the rollover of existing debt, including that from The Next Generation EU recovery fund.
Time is of the essence, as the bloc aims to finalize the MFF by year’s end to avoid dragging negotiations into 2027, an election year for several key members including France, Italy, Poland, and Spain. Irish Minister for European Affairs Thomas Byrne noted that stakeholders are increasingly clear that an agreement must be reached before the year closes.
European Council President António Costa, currently touring Europe to gauge national positions, stressed during a visit to Cyprus that a balanced package of new revenue streams is essential. The European Parliament has called for a 10% increase in the budget’s main headings and wants repayment of the pandemic recovery loans kept off-budget. MEP Carla Tavares highlighted the need for new resources to support priorities like competitiveness, security, and defense, alongside traditional policies such as cohesion and agriculture.
European Commissioner for the Budget Piotr Serafin argued for a transformation of the European economy, stating that investment in competitiveness is vital for Europe to determine its own destiny. While the Commission’s original proposals faced opposition, the Parliament has floated alternative ideas estimated to generate up to €11 billion annually.
Costa’s consultations have covered numerous member states, with upcoming meetings planned for Germany, Poland, Spain, and others. Sweden was excluded from the tour due to its September 13 elections, which could result in a more fiscally hawkish government. Ireland, holding the current presidency, is expected to present a compromise text, likely including a deal on own resources, before mid-October when EU leaders convene in Brussels.
Leave a Reply