S&Ds: A new European budget investing in Europe, in people and in sustainable well-being for all


Euro & Finance
Social Europe & Jobs

Press release

The European Parliament budget committee today backed a report calling for an ambitious and responsible future EU financing. This report will be the mandate of the European Parliament for the negotiations with Council.
S&D vice-president Isabelle Thomas MEP, co-author of the Parliament’s report on the MFF revision, said:
“Europe is facing huge challenges - millions of young people still can’t find work; the effects of climate change are ever more present; and the refugee crisis is not over. If we want to address all these issues, then we need an EU budget that is both well funded and flexible. Today the Parliament backed an ambitious and serious vision of the next Multiannual Financial Framework (MFF), which sets the framework for the EU’s annual budgets for the next seven years.
“Firstly, we need to see the amount of money in the EU budget rise. We want to see the amount spent on the EU budget increase from 1 % of EU Gross National Income (GNI) to 1.3%. This will give us the billions of euros necessary to provide what our citizens want - money for Erasmus, the Child Guarantee, and money to face the refugee challenge.
“We also need to reform how the EU budget is funded. As resources of the EU budget come mainly from national contributions of the member states, the EU budget keeps on decreasing year by year. We need a more sustainable way of funding the EU budget through own resources. The S&D Group has long called for a financial transaction tax, a tax on multinational companies and carbon adjustment measures at EU borders, to fund the EU budget.”
Eider Gardiazábal Rubial, S&D Group spokesperson for the EU budget, said:
“Europe’s future is at stake. Member states are calling on the EU to do even more things - from tackling the root causes of migration to new security initiatives. This is positive but the EU can only act effectively if it has a well-funded budget. If we have new policies and objectives, then we also need additional financial resources, especially considering the Brexit-shaped hole in our finances.
“We hear that EU economies are improving, but this is not being felt by millions of young Europeans who still cannot find work. In Spain, Greece and Italy, still between a third and half of all young people are not in work or in training. This is a disgrace. We will not back any budget that does not prioritise young people.
“We also need money to address climate change, which remains the biggest issue facing the planet. Climate change does not recognise international boundaries and we can only act effectively if we work together. We are calling on member states to finally get serious and provide the EU with the money to make a real difference in reducing CO2 emissions in Europe and around the world.”
Note to editors
The budget committee today voted on two separate reports, one on the future MFF and one on proposals for own resources to fund the new budget. This comes ahead of the European Council outlining its initial view at the end of February.
The reports will now be voted on by the whole Parliament in March before the European Commission puts forward its proposals at the start of May. Negotiations will then begin with the Parliament and Council in order to reach a formal agreement before the next EU elections in 2019.
The Group also sent a letter to all heads of state and government urging them to back a well-funded EU budget.