
The European Parliament rejects the Commission's proposals for a long-term EU budget to address internal and external challenges.
- Europe and Arabs
- Thursday , 24 April 2025 7:39 AM GMT
Brussels: Europe and the Arabs
Following a vote in the European Parliament on a report on the EU's revised long-term budget beyond 2027 to meet the challenges of a changing world, the Socialist and Democratic Party (S&D) group in the Parliament said, "The current Multiannual Financial Framework (MFF) budget for 2021-2027 was drafted in 2019 in a very different world before the COVID-19 pandemic, the sharp rise in energy prices, and Russia's full-scale war of aggression against Ukraine. According to the S&D Group, it is clear that the next MFF must be different and larger." A statement issued by the European political bloc, a copy of which we received, read, "We must finance priorities that help us meet challenges from within and outside the Union. To name but a few, our group's priorities—we want people and regions to be at the heart of the next MFF. Social, economic, and territorial cohesion are essential for a more competitive and resilient Europe." The EU budget must focus on social cohesion, addressing inequalities, strengthening job security, creating high-quality jobs, and enhancing occupational resilience in a changing world. Our group also sends an important signal to the Commission and Member States: around 20 million children in the EU are at risk of poverty and social exclusion. This is unacceptable, and we call for a budget allocation within the European Social Fund Plus (ESF+) to support the European Child Guarantee, a key pillar of the EU's anti-poverty strategy. At the same time, the EU must address challenges in the areas of security, defense, and preparedness, which are essential pillars of a healthy, fair, and prosperous society.
To achieve these priorities, resources for the next Multiannual Financial Framework must significantly increase compared to current amounts, enabling us to do what is necessary to support our citizens in the face of growing social and economic instability. Socialists and Democrats call for new, truly self-sufficient resources, not only to ensure sustainable borrowing repayments, but also to ensure Europe's ability to respond to crises and meet the needs of its citizens. The Socialists and Democrats also insist on the need for new joint borrowing to ensure the EU has sufficient resources to provide a collective response to the many challenges we face.
The Socialists and Democrats group emphasizes that the European Commission's next proposal for the multiannual financial framework must be highly ambitious in terms of the green and digital transformation, as well as the role the EU wants to play in a changing world by demonstrating its unwavering support for Ukraine and the need to increase humanitarian aid to those most in need around the world. The Socialists and Democrats call on the Commission to take our priorities into account when formulating its legislative proposal, which will be negotiated between the European Parliament and the Council. Carla Tavares, Chief Negotiator for the upcoming Mediterranean Financial Framework, said: “The next Mediterranean Financial Framework must strengthen a social Europe by reinforcing the European pillar of social rights and modernizing and decentralizing cohesion policy, with the aim of building a more sustainable, competitive, and just economy and society. At the same time, it must address challenges such as the green transition, as well as security, defense, and preparedness, which are essential pillars of a healthy and prosperous society. Furthermore, the ambitious budget must explore new and innovative sources of revenue, including joint borrowing, to ensure the EU is ready to meet the needs of its citizens.”
According to a report by Euronews, members of the European Parliament expressed their opposition to the European Commission’s vision for the next long-term EU budget (2028-2034), demanding an increase of more than 1% of the EU’s GDP and rejecting the idea of unified national plans for member states. This stance came during a meeting of the European Parliament's Budget Oversight Group (BUDG), where members rejected the Commission's proposal to establish a single fund for each country under the so-called "multiannual financial framework." Instead, they emphasized the need for a larger, more flexible, and ambitious budget that focuses on climate issues, digital transformation, and employment, and responds to current geopolitical challenges.
In this context, 23 MEPs voted in favor of the proposed report, with nine against and two abstentions. They emphasized the need to put "people and regions at the heart of the new financial framework." Portuguese MEP Carla Tavares said, "We need strong investments that strengthen strategic autonomy, economic resilience, and environmental goals, leaving no one behind."
Although the Commission's formal proposal will not be presented until the summer of 2025, MEPs expressed concern that the potential spending cap will not meet the demands of escalating crises, from the Russian war on Ukraine to the US retreat from its global role. For his part, MEP Siegfried Muresan (Romania/EPP) stressed the need to equip Europe with appropriate financial tools to address challenges, considering the budget a key pillar in this context. He called for an increase in the size of the next financial fund. The current EU financial framework amounts to approximately €1.2 trillion, equivalent to 1% of the bloc's GDP, excluding pandemic recovery allocations. The bulk of this funding is directed toward agricultural subsidies and reducing disparities between EU regions.
However, as the next budget is being prepared, the Commission has indicated the need to make difficult decisions to reconcile traditional priorities with more pressing needs such as security and defense. In a statement titled "Creating the Multiannual Financial Framework for the Next Period," the Commission emphasized the importance of enhancing the effectiveness of every euro spent and focusing resources on key priorities.
The Commission is currently considering redesigning the budget structure to include a national investment plan for each member state, linking funding to reforms, similar to the experience of post-pandemic recovery funds. However, Parliament opposes this model, believing it cannot constitute a unified basis for joint spending after 2027.
Instead, MEPs are proposing a model that ensures broader democratic oversight and involves regional and local authorities in policy formulation. They are also calling for the introduction of new European taxes or the creation of own resources to finance the budget, in addition to direct contributions from member states. Muresan warned that the lack of new revenues could lead to cuts to EU programs or increase the burden on taxpayers, especially as the deadline for repaying COVID-19 recovery debt, estimated at around €30 billion annually starting in 2028, approaches. MEPs also agreed that resorting to joint borrowing could be one solution to address major European crises in the future. The European Parliament is expected to endorse this position during its plenary session in Strasbourg, which will be held from May 5 to 8.
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