Negotiations on the European Union’s next Multiannual Financial Framework for 2021-2027 have progressed sluggishly. Member states have not reached agreement on the size of the upcoming multiannual financial framework, let alone its uses.
“The conduct of member states in the financial framework negotiations is irresponsible and inconsistent. The same country can push to preserve a certain level of support, demand new investments in another sector, and ultimately insist that the budget as a whole should not grow,” criticises JEF Finland President Iiris Asunmaa.
Numerous parties have called for the EU to spend more money on combating climate change, on research and development, on defence cooperation, and on managing migration. However, member states have been reluctant to increase the EU’s budget sufficiently, or alternatively to cut agricultural and regional subsidies, which remain among its largest expenditure items.
“It is very unfortunate that Finland appears to regard maintaining the current level of agricultural and regional subsidies as its most important goal. Agriculture’s share of the EU budget is disproportionately large, and funding should instead be directed towards areas more important for our future,” states Asunmaa.
The EU budget is financed by annual membership contributions collected from member states, the size of which is determined in the financial framework negotiations. A system based on membership contributions is problematic for the Union, as member states jealously guard their own contribution shares and disregard the bigger picture. For this reason, like numerous experts and politicians, JEF Finland also proposes that a system of own resources be created for the EU, which would give it the ability to raise its budget independently.
“The EU must be given a limited power to tax, which would make it possible to collect its own budget funds and to abandon membership contributions. Right now, budget negotiations focus mainly on member states’ roles as ”net payers or net recipients”, which gives a completely false picture of the EU’s activities and the added value it brings,” states Asunmaa.
As at present, decisions on the use of budget funds collected through the power to tax would be made by the European Parliament and the member states. The power to tax would also make it possible to make use of the steering effects of taxation and to support policy objectives across different sectors.
”The EU offers us a unique opportunity to change the world in the direction we want. That is why the Union’s capacity to act must be strengthened and it must be guaranteed sufficient resources,” emphasises Asunmaa.
For further information:
Iiris Asunmaa
President
JEF Finland
050 918 7390