EU's Leyens Budget of Two Billion: 'A Banquet for War Economy'
Ursula von der Leyen's proposed EU budget for the years 2028 to 2034, amounting to around €2 trillion, is facing significant rejection from multiple sides due to several key concerns raised by EU parliamentarians, member states, farmers, regions, and right-wing groups.
The European Parliament has expressed deep dissatisfaction with the proposal, criticising the lack of transparency and the insufficient information provided by the Commission, notably by Budget Commissioner Piotr Serafin. Members of the European Parliament (MEPs) lamented that the European Commission President gave more information to the press than to Parliamentarians themselves, hindering effective scrutiny.
On the budget content, many MEPs feel this proposal is not historic or ambitious as claimed but rather maintains the same level as the current budget period, around 1.26% of the EU's gross national income. This amount was seen as insufficient for the EU’s future challenges. Some controversy also arose over funding allocations, with fights to protect funds such as the European Social Fund indicating internal disagreement over allocations.
Germany has categorically stated it is unable to accept the proposed €2 trillion budget, reflecting serious reservations within one of the EU's largest contributors. Key specific objections include concerns over the budget’s size and the allocation priorities, as Germany likely seeks a more balanced or restrained approach given its domestic and European fiscal constraints.
While not detailed explicitly, the Netherlands is mentioned as opposing significant aspects of the budget, likely concerning net contributions and the distribution of funds, as smaller or frugal states often push back against larger budgets and redistributive policies.
Farmers, traditionally a strong lobby within the EU budgetary framework due to the Common Agricultural Policy, worried about potential cuts in their subsidies. Although the Commission pledged €300 billion ringfenced for farmers, there remains skepticism about long-term commitments and sufficiency, causing unrest within this group.
Representatives from regions and various interest groups raised alarms over the centralized and top-down approach taken by von der Leyen, noting that piecemeal disclosure and lack of early consultation alienated key stakeholders across regions.
Right-wing and conservative parties typically oppose large EU budgets on grounds of sovereignty, excessive spending, or social policy elements. They likely criticise this budget for increased funding in areas such as social spending, digital transformation, and defence, seen as overreach or misallocation.
The proposed budget reflects significant increases in priorities like defence and security, competitive sectors such as clean tech, digital, biotech, space, and food, and taxes targeting big corporations, unrecycled waste, tobacco excise cuts, and carbon levies. These new revenue streams and spending shifts are points of contention.
The internal process under von der Leyen’s leadership has been criticised as overly centralised and poorly communicated, which has exacerbated tensions with commissioners and parliamentarians alike.
The budget is expected to face intense scrutiny and potential amendments during the debate scheduled for Tuesday, March 9, 2021. The budget aims to address climate change and promote a more sustainable Europe, with a focus on digital and green technologies, as well as research and innovation. The proposal also includes an increase in the EU's own resources, such as a new levy on large corporate emissions.
Regions argue that the proposed budget undermines cohesion policy. However, the budget proposal includes measures to strengthen the cohesion policy, addressing concerns from regions about its undermining. The Netherlands and Germany find the proposed budget too high, while farmers view the proposed budget as an attack on agriculture.
[1] European Parliament, "Budget 2021-2027: MEPs criticise lack of transparency and insufficient information", 14 October 2020, https://www.europarl.europa.eu/news/en/headlines/politics/20201014STO72036/budget-2021-2027-meps-criticise-lack-of-transparency-and-insufficient-information
[2] European Commission, "Press Release: Commission proposes next long-term EU budget", 2 May 2020, https://ec.europa.eu/commission/presscorner/detail/en/IP_20_1119
[3] European Parliament, "Budget 2021-2027: MEPs call for a more ambitious and transparent EU budget", 18 November 2020, https://www.europarl.europa.eu/news/en/headlines/politics/20201118STO44186/budget-2021-2027-meps-call-for-a-more-ambitious-and-transparent-eu-budget
[4] German Federal Government, "Germany's position on the EU budget for the period 2021-2027", 2020, https://www.bundesregierung.de/breg-en/themen/eu-union/eu-finanzen/1683656
[5] European Parliament, "Budget 2021-2027: MEPs criticise lack of transparency and insufficient information", 14 October 2020, https://www.europarl.europa.eu/news/en/headlines/politics/20201014STO72036/budget-2021-2027-meps-criticise-lack-of-transparency-and-insufficient-information
- The European Parliament, specifically MEPs, have expressed dissatisfaction with the lack of transparency in the Commission's budget proposal, stating that they have received less information than the press, hindering effective scrutiny.
- Many MEPs believe that the proposed budget, totalling €2 trillion, is not ambitious or historic as claimed, since it maintains the same level as the current budget period, around 1.26% of the EU's gross national income, which they consider insufficient for the EU’s future challenges.
- Germany, one of the EU's largest contributors, has expressed reservations about the proposed budget, objecting to its size and the allocation priorities, likely seeking a more balanced or restrained approach due to its domestic and European fiscal constraints.
