The European Union’s member states will negotiate the EU’s multiannual budget and the associated Next Generation EU recovery instrument in the coming weeks. The recovery instrument consists of several funding programmes, the largest of which is the EU’s Recovery and Resilience Facility (RRF). JEF Finland’s General Assembly convened remotely on 28-29 November 2020 and is calling for the EU’s Recovery and Resilience Facility (RRF) to be turned into a permanent European fiscal policy mechanism.
“As long as the EU lacks a common fiscal policy, the Union will remain vulnerable to economic fluctuations. That’s why the Recovery and Resilience Facility must be made a permanent mechanism. The EU’s system of own resources must be expanded by giving it a clearly defined taxation right, and at the same time a credible debt restructuring mechanism must be created to guarantee responsible fiscal management by member states. These changes must be carried out through treaty reform,” demands JEF Finland’s outgoing President Iiris Asunmaa.
Hungary and Poland have opposed the rule-of-law mechanism protecting the EU budget and have, under this pretext, effectively stalled approval of the recovery instrument. Through this opposition, the two governments are bringing their domestic political interests to the EU level and weakening the stability of the entire Union. The rule-of-law mechanism ensures that EU funding cannot be used for activities that violate the European Union’s fundamental values.
“The rule of law is one of the EU’s fundamental values, and adherence to it cannot be compromised. It is crucial that Parliament and the member states hold firm and push through a credible rule-of-law mechanism, even if that means leaving Poland and Hungary outside the recovery instrument, if there is no other option,” comments Risto Rajala, elected as JEF Finland’s President for 2021.
A permanent Recovery and Resilience Facility would enable the EU to stimulate the economy during economic crises and support the transition towards a more sustainable and ecological market economy. At the same time, it must be ensured that the Recovery and Resilience Facility is implemented democratically within the framework of EU law and institutions, and in particular that the role of the European Parliament and the Commission in its administration is secured. This would guarantee democracy while also ensuring that the Recovery and Resilience Facility funds actions in line with shared European goals.
“We must give the EU sufficient means to solve our biggest problems. We cannot let decisions that are crucial to our future become hostage to spinelessness and watered-down horse-trading. Decision-making must focus on improving the well-being and vitality of all citizens of the Union, rather than negotiating with individual leaders who violate the Union’s fundamental values. A permanent Recovery and Resilience Facility would make exactly this possible,” states Risto Rajala.