Future challenge of the EU budget: to finance more with less resources
The European Commission reopens the debate on the future of EU finances with the publication on 28th June of a reflection paper which explains the difficult challenge facing the future EU budget: financing more with fewer resources, a challenge posed by a a political scenario marked by the Brexit and that forces to reflect on the design of policies in key areas of action such as agriculture or cohesion.
At a time when Europe decides about its future, the EU needs a budget that is appropriate for the purposes pursued and makes every euro spent
The Commission’s discussion paper on the future of EU finances, published yesterday by the Commission, addresses options to make this a reality, especially when Europeans expect their Union to do more and more. But while the EU is more active than ever to protect, train and defend its citizens, its resources remain “stretched” to the maximum.
In that context, the issues raised in this fifth and final document in the series are central to the debate started on 1st March with the Commission White Paper on the Future of Europe. The discussion paper outlines the possible budgetary implications of the options that can be chosen.
In the opinion of Commissioner Günther H. Oettinger, Head of Budget and Human Resources, “if Europe has to face new challenges, the money must come from somewhere. We can either spend less or find new income. However, whatever we do, every euro of the EU budget that is invested must bring added value and have a positive effect on the daily lives of citizens. ”
Corina Creţu, Regional Policy Commissioner, said: “It is time to renew the EU budget: let us make it simpler and more flexible and reflect, with ambition and imagination, on how we can make it a powerful tool to help us grow faster, in an ever closer union, and leave no one behind in this globalized economy. ”
Ultimately, the EU is expected to play a greater role in new areas of action, such as migration, internal and external security or defense. In addition, Europe must also preserve its preponderant role on the international stage, as a major donor of humanitarian aid and aid to development and as a leader in the fight against climate change. This must be achieved with an EU budget which will only decrease following the departure of the United Kingdom.
The EC Discussion Paper addresses this challenge and puts the main elements for discussion structured around the five White Paper scenarios on the table: Will the EU limit itself to moving forward as before, Member States will do less together, Will they advance at different speeds, do less but more effectively, or do much more? Each of these possible scenarios would have different consequences, both in terms of the level of expenditure for each objective and the source of the resources used. Options range from a reduction of existing policy expenditures to an increase in revenue.
The reflection document sets out the basic characteristics of the EU budget and sets out the main trends and developments in key areas such as cohesion or agriculture
It also addresses key issues such as the added value of EU funding or the link between this funding and structural reforms in the Member States.
Source: Office of the European Commission in Spain
