EU long-term budget: Javier Doz Orrit, EESC Workers' Group Rapporteur on the Multiannual Financial Framework asks for a more ambitious budget, sharing European Parliament's position.
- The EU will not be able to face the upcoming economic, social, environmental, and political challenges with the proposed allocation of resources.
- Cohesion and Common Agricultural Policy (CAP) funding should be maintained, not reduced, during the next budgetary period.
- The EU must increase its own resources, including taxes on financial transactions, and on digital multinationals.
After the debate in the European Parliament and in the face of the vote on the parliamentary position on the budget of the European Union, Javier Doz Orrit, EESC rapporteur for the opinion on budget, highlights the fundamental points to take into account, from the Workers' Group perspective.
The proposal of the European Commission for the Multiannual Financial Framework (MFF) 2021-2027 is an obvious setback in the resources of which the EU would dispose in order to face present and future challenges. The EU, which should lead the implementation of the Sustainable Development Goals and the fight against climate change, will not be able to do so with the proposed budgetary scheme.
The commission proposes to lower the current 1.16% to 1.11% of the European Gross National Income (GNI) financing. With these resources, it will not be able to carry out fundamental policies to ensure 'fair transitions' towards a sustainable economic and social model, nor to contribute to the development and application -by the Member States- of the European Pillar of Social Rights.
The EESC, together with the European Parliament, demands instead that 1.3% of European GNI should be achieved, rejecting the proposed cuts of 10% (cohesion) and 15% (PAC) by the commission. The EU needs to increase its own resources, through taxes such as corporation tax, non-recycled plastics, and others not provided for by the commission, such as tax on financial transactions and on digital multinationals.
The EESC opinion also supports Parliament's proposal to increase funding for research and innovation, and agrees with the commission to cut back on EU financial transfers to states that violate democratic principles and the rule of law. It is essential to highlight that the EESC opinion has been adopted with the vast majority of social stakeholders, trade unions, employers and civil society, and joins the majority of the European Parliament and the Committee of the Regions in a proposal with the widest representation at all levels.
ECO/460 Opinion on the MFF by Javier Doz Orrit https://www.eesc.europa.eu/en/our-work/opinions-information-reports/opinions/multiannual-financial-framework-after-2020