Monday

20th Mar 2023

Magazine

The EU debate on its own resources

  • Johan Van Overtveldt (ECR, Belgium) the president of BUDG committee (Photo: EP)

In May 2019, the European Commission proposed to increase the EU budget from 1.03 percent to 1.11 percent of all European economies combined.

This figure will be the basis of the debate on the so-called Multi-Annual Financial Framework (MFF), which is Brussels-bubble speak for the EU budget for the next seven years.

Read and decide

Join EUobserver today

Become an expert on Europe

Get instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

The last MFF started in 2014 and ends in 2020. The next one will start in 2021 and end in 2027.

The increase was then seen as high, but less so than expected.

Compared to this other federation, the United States, one percent is still a very low number, as the federal government in Washington has a budget of around 20 percent of the GDP of the country.

Until the First World War however, the US federal budget was not much higher than one percent too, with the postal service as the largest federal budgetary post.

In other words, the EU budget is still rather small. But this doesn't mean that the discussions on the next MFF will not be substantial.

Johan Van Overtveldt (ECR, Belgium), the president of the committee that coordinates the discussions on the MFF, or BUDG, obviously sees "reaching an agreement on the next MFF" as the committee's priority number one.

A second challenge, according to him, will be "the absorption of what comes out of the Brexit saga".

Brexit has two major consequences on the budget.

First of all, the UK's contribution to the EU disappears from the budget. This will need to be compensated, mainly by net-contributors (countries that pay more than they receive.)

A second consequence is that the European Commission wants to abolish all rebates when the UK, the mother of all rebates, leaves the Union.

Germany calculated that its contribution will double, while the contribution of the Netherlands would go up by 75 percent.

That is the reason why five net contributors – Germany, the Netherlands, Austria, Denmark and Sweden – have asked not to increase the EU's budget and stick to the one percent.

A third challenge, Van Overtveldt said, will be "the question of the own resources of the EU and whether or not there will be more EU fiscal revenues or not."

The fact that the European economy – and certainly the German economy – is doing less well than predicted, will make the discussions on increasing the EU budget even tougher.

So, for Van Overtveldt, it is clear that he will be happy if his committee succeeds "in reaching an MFF in which the member states can find themselves, one that will strengthen the credibility of the EU and the social-economic fabric."

The coordinators are: José Manuel Fernandes (EPP, Portugal), Eider Gardiazabal (S&D, Spain), Valérie Hayer (Renew, France), Rasmus Andresen (Greens/EFA, Germany), Joachim Kuhs (ID, Germany), Bogdan Rzonca (ECR, Poland), Younous Omarjee (GUE/GNL, France).

This article first appeared in EUobserver's latest magazine, Who's Who in European Parliament Committees, which you can now read in full online.
Commission breaks taboo on 'own resources'

The European Commission has proposed a list of potential methods to enable the EU to raise its 'own resources' in future, citing the need to end current wrangling over member state contributions to the Brussels budget.

Magazine

Six priorities for human rights

Belgian socialist MEP Marie Arena is chairing the European Parliament's sub-committee on human rights. Her biggest challenge? Finding ways to reach objectives that cover an enormous spectrum of issues - from climate to child protection.

Magazine

EU must manage climate and industry together

For Romanian centre-right MEP Adina-Ioana Valean, the previous chair of environment committee and current chair of industry, research and energy (ITRE), climate and industrial policy-making must go hand-in-hand to bring sustainability and prosperity to Europe.

Magazine

ENVI to deliver 'Green Deal' as main priority

The French liberal MEP Pascal Canfin, who is chairing the European Parliament's committee on environment, public health, and food safety, is adamant to deliver the Green Deal quickly - because "we cannot afford to waste time".

Magazine

Welcome to the EU engine room

Welcome to the EU engine room: the European Parliament (EP's) 22 committees, which churn out hundreds of new laws and non-binding reports each year and which keep an eye on other European institutions.

Magazine

Which parties and countries chair the EP committees?

Although the European Parliament tries to keep a geopolitical balance within the committees, the breakdown of the actual chairs of the committees by political party and nationality is uneven - with a clear under-representation of central and eastern EU countries.

Latest News

  1. 'Forever chemicals' industry hit by perfect storm
  2. EU summit zooms in on global roles This WEEK
  3. EU launches 'Hydrogen Bank' — but what is it?
  4. MEPs probing spyware 'stonewalled' by EU states
  5. Why the EU double standards on mental help for asylum seekers?
  6. 'Bravery has no gender', Ukrainian Nobel winner says
  7. Innovation and politics: an intertwined relationship
  8. Most Frontex deportations to take place from Germany, Italy

Stakeholders' Highlights

  1. Nordic Council of MinistersNordic and Baltic ways to prevent gender-based violence
  2. Nordic Council of MinistersCSW67: Economic gender equality now! Nordic ways to close the pension gap
  3. Nordic Council of MinistersCSW67: Pushing back the push-back - Nordic solutions to online gender-based violence
  4. Nordic Council of MinistersCSW67: The Nordics are ready to push for gender equality
  5. Promote UkraineInvitation to the National Demonstration in solidarity with Ukraine on 25.02.2023
  6. Azerbaijan Embassy9th Southern Gas Corridor Advisory Council Ministerial Meeting and 1st Green Energy Advisory Council Ministerial Meeting

Join EUobserver

Support quality EU news

Join us