6 hours agoEuropean Commission proposes budget of 2 trillion euros
Periskopi(a year ago)
(a year ago)The European Commission has proposed on Wednesday a budget of 2 trillion euros for the European Union for the period 2028%2034, placing new emphasis on economic competitiveness and defence. “This is a budget that responds to Europe's ambition, which faces its challenges and strengthens our independence”, the president of the European Commission said, [...]
“This is a budget that responds to Europe's ambition, which faces its challenges and strengthens our independence”, European Commission President Ursula von der Leyeen said before reporters in Brussels.
“Budget is bigger. It's smarter and sharper. It produces results for our citizens and businesses, for our partners and for our future”, she added, Periscope.
The commission said the proposal represents 1.26% of the European Union's National Bruto production with 27 member states, a measure of the size of the economy, compared to 1.1.3% in the current seven-year budget.
The new budget must be approved by all member states and signed by the European Parliament.
The proposal includes 451 billion euros for the new European Competition Fund, focused on strengthening the defence industry, promoting innovation and supporting the transition of industry towards clean energy across the bloc.
The proposal allocates 131 billion euros in particular for defence and space, a five-fold increase compared to the current scale, according to the commission.
Also forecasting 302 billion euros to support farmers and at least 218 billion euros for Europe's least developed regions, as well as 200 billion euros for global programmes.
Most budget funds come from the governments of EU member states.
However, the commission proposed several ways to raise funds directly for the budget, including a new tax on companies doing business in Europe, and that have an annual net circulation of over 100m euros in an EU country.
Several EU countries and lawmakers immediately criticised the proposal.
“The EU is important for our well-being, but the proposed budget is too high”, Dutch Finance Minister Eelco Heinen said.
The European Parliament, on the other hand, said the commission's proposal was not large enough.
We can't do more with less. The new priorities require new and relevant resources, not cuts of existing priorities”, said Siegfried Muraúan, centre-right Eurodeputs and negotiators for the EU's future budget.
The budget disputes are among the most difficult in EU policy, because they highlight political and economic divisions among member states.
Talks in the following months are expected to stress political tensions amid efforts to increase financing for new priorities and preserve traditional investments in agriculture and regional development. / REL
