The need for reform of the post-2027 Multiannual Financial Framework lies “on the expenditure side”, according to Germany in a position paper published by Agence Europe.
From the very first line of the document, Germany warns that: “There is no basis for increasing the MFF’s volume relative to GNI”. As a result, “Member States’ financial leeway will remain limited”.
However, Germany has agreed “in line with the timetable for the introduction of new own resources, constructively examine the Commission’s proposals in this regard” (see EUROPE 13641/8), the challenge being to maintain the budget despite the forthcoming repayment of the loan linked to the post-Covid Next Generation EU fund. The German document also calls to “stimulate private investment” through greater access to banking and financial instruments.
Germany supports the European Commission’s intention to base the EU’s next long-term budget on the implementation of reforms. And Cohesion policy should not be exempt, according to the German government, which is advocating “stronger incentives for reforms by Member States”. In their view, a performance-based approach, “with milestones and targets”, would indeed “help make European spending more effective”.
The document also warns that “Cohesion policy [will have to be] implemented with a more appropriate budget”. Germany believes that “an appropriate budget [must] be provided” for the Common Agricultural Policy, “given the high demands” the CAP must meet.
Strengthening the security and defence industry, competitiveness, support for Ukraine, implementation of the Common European Asylum System, climate and biodiversity (through a funding “quota”) and enhancing opportunities for mobility and cooperation in all areas of education are among the political priorities defended by Germany.
A number of principles should guide the EU’s next long-term budget: prioritising spending with European added value, ensuring respect for the Rule of law and ensuring flexibility in the redeployment of funds “between policy areas, as opposed to merely relying on margins and reserves”.
Read the German position paper: https://aeur.eu/f/hcx (Original version in French by Florent Servia)