The European Council reached an agreement on Tuesday on the European Union’s multiannual financial framework for 2021-2027 and the Next Generation EU recovery instrument, following a summit that lasted several days.
“It is absolutely vital for the future of the whole of Europe that an agreement was finally reached on the recovery instrument and the multiannual financial framework. The negotiations send a strong signal about the EU’s capacity to act under challenging political circumstances,” says JEF Finland President Iiris Asunmaa, welcoming the news.
Despite reaching an agreement, the outcome of the summit was in many ways a disappointment. Funding for the Horizon Europe research programme ended up considerably lower than the Commission’s proposal, and the Just Transition Fund was cut back significantly from what was planned. Several of the Commission’s priorities, such as investments in health and digitalisation, suffered severe cuts. In addition, the goals concerning the rule-of-law principle were watered down even further. JEF Finland has also called for investments in the future to be protected.
“The EU should fund research and development far more than it currently does, so that we don’t fall permanently behind the rest of the world in the global technology race. The European Parliament and the Commission must not accept the proposal without stronger commitments to future investments,” demands Asunmaa.
In the negotiations, Finland was allocated 400 million euros for rural development. In addition, Finland negotiated an additional 100 million euros for supporting sparsely populated areas. JEF Finland demands that the funding allocated to Finland be used in a way that promotes competitiveness and carbon neutrality.
“The funds negotiated for Finland must be used to develop innovative means of combating climate change and boosting competitiveness, so that genuinely European added value is created. Direct subsidies for fossil-based agriculture and infrastructure can no longer continue,” Asunmaa states.
The political and public debate related to the summit’s decisions has focused mainly on member states’ net payment shares and the size of the recovery instrument, as well as the ratio between grants and loans. This is problematic, because from the point of view of the bigger picture it would be more important to focus on examining what the funding targets and criteria actually are. The Union’s system of own resources must be strengthened so that budget discussions can move forward from selfishly staring at one’s own net contributions.
“This perspective completely ignores the Union’s proven positive effects on the national economy, not to mention the immeasurable value of the EU’s global influence and of peace. The EU is about so much more than giving and taking,” emphasises Asunmaa.
The agreements on the recovery fund and the multiannual financial framework demonstrate member states’ trust in the European Union’s ability to resolve political challenges. JEF Finland believes, however, that one-off investments are not enough. As part of federal development, the Union needs a permanently larger budget so that it has sufficient means to solve global and European challenges, such as climate change.
“The EU must be developed towards clearer federal structures, so that more competences are transferred to it in the policy areas where its action creates the most added value,” states Asunmaa.
For further information:
Iiris Asunmaa
President
JEF Finland
050 918 7390