Finland’s priorities for the EU’s next long-term budget are similar to those unveiled by the European Commission this summer (see EUROPE 13682/1), namely a simplification of the budget structure, guaranteed agricultural funding, and above all increased funding for defence and competitiveness. Finland has set out its position on the 2028-2034 Multiannual Financial Framework in a note published on Friday 19 September.
Finland, which borders Russia, is asking for its situation “as a Member State on the EU’s eastern external border” to be taken into account. Its aim is that European defence funding “be specifically directed towards the countries on the eastern front line”.
For Finland, which is a net contributor to the EU budget, the problem is that the overall envelope for the 2028-2034 MFF is “too high”. Anxious not to see its financial contribution increase “unreasonably”, Finland is asking the EU to give priority to the “essential priorities” of defence and competitiveness. Even if it means making cuts elsewhere?
The start of the next Multiannual Financial Framework will coincide with the repayment of the loan linked to the EU’s post-Covid-19 recovery plan. Without an increase in the budget, this reimbursement would correspond to more than 20% of the EU’s annual budget. In its position, Finland did not take a stance on the adoption of a new package of own resources (ETS1, CBAM, uncollected electronic waste, excise duties on tobacco, corporate turnover tax), the aim of which is to absorb this excess expenditure, thanks to an additional annual contribution estimated at €44 billion.
Finland is also opposed to the new loans proposed by the Commission, through the crisis mechanism and the Catalyst Europe initiative, which should make it possible to invest in European priorities (defence, energy infrastructure) by means of loans on favourable terms. This does not prevent it from declaring that it is “open to various financing solutions aimed at strengthening overall security in Europe”.
See Finland’s position: https://aeur.eu/f/im0 (Original version in French by Florent Servia)