Especially against the background of the war in Ukraine, the EU Commission wants to increase the EU budget. To this end, the Brussels government has asked the 27 Member States to contribute an additional €66 billion to the multiannual financial framework. This is intended to benefit Ukraine, migration and competition.
“We have experienced one crisis after another for three years,” von der Leyen said, referring to Russia’s offensive war in Ukraine. “And we felt the aftershocks very painfully. Energy prices are up, inflation is up, interest rates are up.”
More support for Ukraine
The EU Commission is earmarking the lion’s share of the additional funds to support Ukraine. “We propose a financial reserve for the next four years of EUR 50 billion,” said von der Leyen. This includes loans and grants. The funds will “primarily provide perspective and predictability to our partners in Ukraine. And it should also be an incentive for other donors to participate as well”.
In addition, an additional €15 billion will come from the EU budget for migration and neighborhood policy. Von der Leyen mentioned in particular support for member states in protecting the external borders, cooperation with third countries, assistance to Syrian refugees in the Middle East and the ability to respond to humanitarian crises.
keyword competitiveness
According to plans by the European Commission, more additional resources should also be made available for the competitiveness of the European Union. According to Von der Leyen, ten billion euros have been set aside for this. Finally, the rising financing costs and fixed costs in the EU budget should also be taken into account.
According to the EU Commission, the EU budget for the years 2021 to 2027 has been “maximised” due to the high costs of supporting Ukraine, among others. In 2020, the EU agreed on a collective budget of around €1.1 trillion for the next seven years.
“Tense fiscal situation in Austria”
All EU countries must agree to an increase in the EU budget. But there is already resistance. Austria, as a net contributor, cannot agree to an increase in funds, Finance Minister Magnus Brunner stressed. Given the corona crisis, the economic crisis caused by the pandemic, high inflation and energy prices, “the fiscal situation in Austria is tense”.
For the past three years, the federal government has had to “assemble aid packages of historic proportions”. According to Brunner, Ukraine’s financial needs must first be covered by the “existing possibilities”.
According to a report by the internet portal Politico, the big net contributors Germany and the Netherlands are unwilling to pay for anything but Ukraine. “At the moment we have very difficult (budget) negotiations in member states, including Germany, so now is not the right time to ask member states for more money,” German finance minister Christian Lindner recently said.
Source: Krone
I am Wallace Jones, an experienced journalist. I specialize in writing for the world section of Today Times Live. With over a decade of experience, I have developed an eye for detail when it comes to reporting on local and global stories. My passion lies in uncovering the truth through my investigative skills and creating thought-provoking content that resonates with readers worldwide.
