Estonia is ready to “contribute more” to the EU budget, which will have to be “bigger”, according to a position paper seen by Agence Europe on Tuesday 11 February. “Other Member States” share this view, according to Estonia.
The Baltic State is not opposed to the addition of new own resources, “if they bring added value compared to the current system, which is essentially based on Gross National Income” and if the budgetary burden of the less prosperous Member States is not considerably increased.
Not all Member States have officially adopted a position on the post-2027 Multiannual Financial Framework, while the Commission’s proposal is expected in July. They will discuss this for the first time at the informal meeting of the General Affairs Council in Warsaw, on Tuesday 18 February. The Commission, which will be present, published its ‘Roadmap’ (see EUROPE 13577/20) on Wednesday 12 February.
Estonia justifies the need to increase the EU budget by the expected enlargement of the EU “during the next budgetary period” and by its wish to increase funding for defence, cross-border connectivity and continued support for Ukraine. According to Estonia, these three priorities must not detract from funding for existing areas of action.
Estonia’s position paper makes no mention of the repayment of the debt incurred by the EU with NextGenerationEU, which will begin in 2028 and could represent almost 20% of the EU’s current annual budget, according to the Commission. Spain, whose position paper Agence Europe has also been able to see, has proposed extending this deadline, which would, according to the Member State, “alleviate short-term budgetary pressures, ensure the liquidity of the EU bond market and continue investment in the future European economic model”, reads Spain’s position paper.
Spain’s ambitions for the EU’s next long-term budget are high. Like Estonia, it is arguing for its increase, but with a quantified proposal: in future, the European budget should represent “at least 2%” of the EU’s annual GDP. “This level corresponds to the temporary increase in revenue in the latest decision on own resources ceilings”, explains the Spanish government.
Spain goes even further, suggesting that investments should be financed by issuing common debt, as was done with the NextGenerationEU joint borrowing. In Spain’s view, the increased needs in the security and defence sectors in particular justify joint borrowing. But European Commissioner Piotr Serafin warned MEPs at his hearing in October 2024 (see EUROPE 13520/4) that this solution was not on the agenda.
The European Commission favours the creation of new own resources. But its proposal for a package of three new own resources has been blocked by the EU Council for over a year, because the revenue has already raised at national level. Like Estonia, Spain is not opposed to new own resources, as long as they “are not taken from the existing revenues of the Member States”.
Other solutions have been proposed by Spain: extending the financing capacity of the European Investment Bank (EIB), using the funds held by the European Stability Mechanism (the euro area rescue fund) by creating a credit line “to support our economic security”. The economic consequences of Russia’s war of aggression against Ukraine are more of a “threat to stability” than a financial issue, according to Spain.
Priorities to be funded. All these solutions must enable the EU to finance its needs. On defence issues, for example, Estonia has called on Member States to pool their defence investments “in a spirit of solidarity”. In its view, cohesion policy should also help Member States and regions on the EU’s eastern border with Russia and Belarus to “overcome the negative effects of war”. The Baltic State is also arguing for an EU budget tailored to the needs of each country, in the spirit of the single national plans for each Member State that the Commission plans to launch as part of the next MFF. Estonia’s other major priority is to develop cross-border connectivity in the fields of transport, energy and digital technology.
Re-industrialisation, innovation, the social, digital and green transitions, the development of transport and energy infrastructures, food safety, the financing of agriculture and fisheries, and major social priorities (housing crisis) are among Spain’s priorities. (Original version in French by Florent Servia)