EU Budget Seeks 10% Boost

In a recent development, the Budgets Committee of the European Parliament has set forth its draft negotiating stance for the 2028-2034 EU budget cycle, advocating for a 10% increase in the budget to support key EU priorities. This proposal was endorsed on Wednesday, with the committee stressing the necessity to elevate the budget to 1.27% of the EU’s Gross National Income (GNI), a figure that notably excludes debt repayment costs associated with the NextGenerationEU recovery fund.

The MEPs’ proposition aims to evenly distribute increased funding across various budget sectors, ensuring resilience against inflationary pressures while addressing significant challenges such as warfare in Europe, economic and social issues, and environmental crises. This draft budget emphasizes maintaining the EU budget as an investment tool to support EU policies, citizens, businesses, and SMEs, while enhancing the EU’s value compared to national expenditures.

Furthermore, the MEPs have highlighted their opposition to the re-nationalization of the EU budget, advocating for a unified approach rather than the Commission’s proposed “one plan per member state,” which could potentially reduce transparency and incite competition among beneficiaries. The report also calls for increased funding and specific allocations for crucial programs like the Common Agricultural Policy, Fisheries Policy, and the Cohesion Policy, among others.

Regarding fiscal resources, MEPs are pushing for the introduction of new “own resources” to finance the EU budget and manage the debt from the NextGenerationEU fund. They propose generating approximately €60 billion annually through various means, including a possible digital services levy or an extension of the Carbon Border Adjustment Mechanism.

The final plenary vote is scheduled for April 29, after which negotiations with the Council will commence, taking into consideration the Parliament’s strong stance on maintaining and enhancing budget allocations for critical EU operations and policies.