The EU’s next financial framework will have to be “much more flexible” in order to be able to finance “unforeseen” events of “historic importance” emphasised the European Commissioner for Budget, Johannes Hahn, in his opening address at the EU’s annual budget conference, held in Brussels on Monday 29 April.
The future reform of the European Union’s fiscal rules and spending, which are to be put in place for the next Multiannual Financial Framework (MFF) in 2028, was also mentioned by the Commissioner, who stated that “the preparations are beginning now”.
“Our current way of thinking about the European budget is no longer a viable option”, said the Commissioner, hammering home his point: much of the conference subsequently focused on European competitiveness, the evolution of the Union’s spending strategy and the need to discover new own resources.
In the opinion of Johannes Hahn, and of many of the panellists, the number one priority for the future EU budget should be security and defence.
“We have to get out of our comfort zone because we can no longer leave European security predominantly in the hands of the United States”, said the Commissioner, emphasising the fact that the EU must strive to put in place a wide range of “hard power” capabilities, including “massive” investments in terms of defence and joint procurement of military equipment.
He believes that the next MFF should focus on three key areas: expenditure, revenue and impact. Mid-term reviews, similar to the one that has been recently carried out, might still be necessary and should therefore be incorporated into the planning as a regular instrument, he insisted.
With regard to the long-held European principle that the EU budget should not exceed 1% of gross national income, the Commissioner believes that this is an outdated idea, which even “frugal countries” will have to accept. In addition to the annual contributions made from each Member State, Brussels will need its “own revenues” to finance its geopolitical projects.
Increasing the number of EU bonds and taking on more of the joint debt could be another key aspect of this approach, added Johannes Hahn. (Original version in French by Isalia Stieffatre)