Two camps emerged again at the Council of the European Union on Tuesday 21 January during a debate between EU finance ministers on how to finance the Just Transition Fund, with, on the one hand, Member States asking for new money and, on the other, Member States calling for a reallocation of funds allocated to agricultural and cohesion policies.
It was "not a heated debate", which covered much more than the Just Transition Fund: "some countries want fresh money, others are in favour of redirecting existing funds", said one source at the end of the proceedings. It points out that it will ultimately be up to the European Council to make the budgetary choices.
Last week, the Commission presented an investment plan for a sustainable Europe to finance the European Green Deal unveiled at the end of 2019 (see EUROPE 12403/1). In addition to mobilising 25% of the post-2021 EU budget to achieve this, a Just Transition Fund would be endowed with €7.5 billion supplemented by €11 billion from structural and investment funds (see EUROPE 12403/2).
On the Just Transition Fund "different views have been expressed, but we know they are expressed in the broader multiannual financial framework context", noted Executive Vice President Valdis Dombrovskis. Nevertheless, he reported "positive comments", notably on the 25% threshold for intervention of the post-2021 EU budget in favour of environmentally sustainable investors.
Stability Pact. Asked about a possible reform of the Stability and Growth Pact to encourage investment in sustainable infrastructure, the Commissioner recalled the ongoing reflection on a simplification of European budgetary rules, in particular by ceasing to use indicators which are difficult to quantify, such as those related to the structural budgetary effort and the ‘output gap’ (see EUROPE 12406/15, 12328/8).
It is important to see a consensus emerge on how the EU's budgetary rules should evolve, Dombrovskis said. A public consultation will be launched in early February when the Commission will present its ideas.
On Monday, at the end of the Eurogroup, Commissioner for Economy, Paolo Gentiloni, said that his services were working on several fronts: budgetary, fiscal and state aid rules.
The question is not whether to promote 'green' investments, but how to do it, he said. (Original version in French by Mathieu Bion with Marion Fontana)