Von der Leyen’s billion-dollar demand: Berlin in a quandary

How a lot air is there left within the EU price range? The query has arisen no less than because the EU heads of state and authorities regarded for attainable financial savings choices within the multi-year monetary framework at their most up-to-date summit. Germany particularly, as the most important internet contributor to the EU, has an curiosity within the present EU price range being slimmed down.

In the course of the deliberations in Brussels, Chancellor Olaf Scholz (SPD) advocated for much less cash to be launched in some locations within the present EU price range than initially deliberate. The will for a leaner EU price range is linked to a requirement from EU Fee chief Ursula von der Leyen: She expects the EU states to switch a complete of an extra 66 billion euros to Brussels.

The cash is meant, amongst different issues, to assist Ukraine. As well as, the EU Fee additionally needs further cash for European migration and competitors coverage. On the EU summit there was nearly unanimous help for monetary help for Ukraine, other than the objections of Hungarian Prime Minister Viktor Orban.

Annual further burden of 4 billion euros

However there’s a drawback with von der Leyen’s different billion-dollar claims. In accordance with info from EU diplomatic circles, a complete of 13 EU states – together with Germany, the Netherlands and Austria – are insisting that the mandatory funds be made liquid by way of reallocations within the present Brussels price range.

The main target is totally on the 2 largest pots within the EU price range: the agricultural price range and the so-called cohesion funds, that are supposed to cut back the financial variations between the areas within the EU. Each pots every make up round a 3rd of the group’s multi-year price range between 2021 and 2027. Your complete EU price range for this era is 1.1 trillion euros.

However for Germany particularly, von der Leyen’s demand for a rise within the Brussels price range is sort of a quandary: If the federal authorities have been to satisfy the Fee head’s further spending needs, the federal price range would in future face an extra annual burden of 4 billion euros.

In any other case, the federal states must forego urgently wanted cash from the EU Cohesion Fund. This could occur if the EU have been to tighten its belt on the 2 largest gadgets within the price range.

In Berlin it’s noticed that thus far the funds from the European Cohesion Fund haven’t but flowed to a big extent from Brussels to the member states. In accordance with Siegfried Muresan, the conservative price range rapporteur within the European Parliament, it is a fully regular course of. “Within the subsequent few years, nearly all the cash within the cohesion and agricultural funds has been earmarked,” Muresan instructed the Tagesspiegel.

Inexperienced MEP Rasmus Andresen mentioned there was nothing fallacious with on the lookout for choices for cuts, notably within the two large areas – agricultural coverage and the cohesion funds. “However you shouldn’t count on an excessive amount of from it,” he added.

The choice must be made on the EU summit in December

FDP MEP Moritz Körner sees it otherwise. The entry to EU funds within the EU’s multi-annual price range varies relying on this system, generally by way of the Fee straight, generally by way of the member states, he defined. “The funds for the EU’s cohesion and structural funds, the place a big a part of the accountability lies with the member states, have all the time had notably poor call-up charges,” mentioned Körner.

The FDP politician continued that the cohesion funds are at present being known as up from the already accomplished monetary framework from 2014 to 2020. “It’s foreseeable that the funds won’t be totally accessed; Italy and Spain particularly have been unable to maintain up,” he continued. As a result of the member states are nonetheless busy with the final multi-year price range and the Neighborhood’s Corona reconstruction fund, they don’t seem to be capable of entry the accessible cohesion and structural funds from the present EU price range, criticized Körner.

At their summit, Scholz and the opposite EU heads of state and authorities didn’t but attain a choice on von der Leyen’s further spending requests. This could now be determined on the subsequent high assembly in December.

Dutch Prime Minister Mark Rutte set the tone for this on Thursday in Brussels. His demand with regard to the present EU price range was: “Re-prioritize, re-prioritize and re-prioritize.”