Commission proposals welcome but not enough to steer EU through crises

Today, the European Commission has just presented two proposals, one on the revision of the Multiannual Financial Framework, the EU’s seven year budget, and the other amending the so-called Own Resources enhancing the EU’s ability to raise funds directly, rather than via Member States budgetary contributions. 

Rasmus Andresen MEP, Greens/EFA Negotiator for the MFF, comments: 

“The challenges we face are big: The reconstruction of Ukraine, an emerging recession and the climate-neutral restructuring of our industry. Against this background the European Commission is right: we cannot address these challenges without fresh money from the member states. Now we have to set the right priorities. In times of declining economic performance and an enormous investment backlog, simply shifting budget items would be the wrong answer.

“We welcome the proposal for STEP and call for sufficient funding. However, it is highly problematic that it is to be financed almost exclusively from existing programs. The EU needs an active industrial policy and must become competitive with green technology. We also call for greater investment in joint European infrastructure and research. There is little left of von der Leyen's promised sovereignty fund. 

“We also need more funds for social justice. That is why we need an increase of the climate action social fund and for example an inflation compensation for programs such as Erasmus. Overall, the Commission's proposal is not enough.”

David Cormand MEP, Greens/EFA Shadow Rapporteur for Own Resources, comments: 

“We welcome the proposal for the temporary statistical own resource based on company profits and for the adjustment to ETS and CBAM, which were proposed already in the first basket in December 2021. Unfortunately, overall the Commission's own resources proposal for new own resources lacks ambition. New sources of revenue are drastically needed to repay the debt and to fund all of the EU's priorities, including the green transition.

“Sadly, the Commission’s vision for the EU’s own resources is simply too narrow and does not target the right tax payers. If the Commission wants the EU to be a dynamic actor that can live up to its true potential, free from Member States’ wrangling over national contributions, then we need much more ambition for the EU’s own resources.

“The Commission was markedly silent on a wealth tax today, and yet it is one of the most effective, and fair ways to tackle the challenges we face. The European Union must create a new tax system based on taxing the wealthiest and deal with vast inequality through a Financial Transaction Tax. These are the proposals that the Commission should have put forward today but failed to deliver.”

More:

This week Greens/EFA MEPs sent an open letter to the Commission on the needs for the MFF and OR files.