Latest news with #economiccompetitiveness
Free Malaysia Today
5 days ago
- Business
- Free Malaysia Today
EU unveils blueprint for boosted €2tril budget
The European Commission also proposed establishing a fund of up to US$115 billion to support war-torn Ukraine. (EPA Images pic) BRUSSELS : The EU executive proposed today a long-term budget boosted to €2 trillion as Europe confronts complex challenges from overseas competition to Russian aggression at its borders. EU budget commissioner Piotr Serafin unveiled a funding plan for 2028-2034 that aims to foster the bloc's economic competitiveness, support Ukraine and satisfy traditional beneficiaries of European money, such as farmers. 'The next MFF will be the most ambitious ever proposed. It is more strategic, more flexible, more transparent,' EU chief Ursula von der Leyen said, using the bloc's acronym for the budget. The proposal is to kickstart two years of tense negotiations with the EU's 27 member states and lawmakers in Brussels. Serafin said that under the commission's plans, €300 billion (US$347 billion) will be ringfenced to support farmers, who have been worried about potential cuts to their slice of the pie. A competitiveness fund bringing together EU investment efforts in clean tech, digital, biotech, defence, space and food will amount to €451 billion, he said at the European Parliament. The European Commission also proposed establishing a fund of up to €100 billion (US$115 billion) to support war-torn Ukraine. 'This is a long-term commitment to Ukraine's recovery and reconstruction,' Serafin said. And as Europe pushes to re-arm, the amounts dedicated to defence and space will increase five-fold to €131 billion. Similarly, the sums dedicated to military mobility under a separate pot dedicated to investment in infrastructure will go up 10-fold, he said. The previous 2021-2027 budget was worth around €1.2 trillion.
Reuters
5 days ago
- Business
- Reuters
Taxation in EU budget proposal sends 'wrong signal', German minister says
DURBAN, South Africa, July 17 (Reuters) - German Finance Minister Lars Klingbeil doubled down on Berlin's criticism of the European Commission's proposed budget on Thursday, taking aim at corporate tax under the plan which he said sends "the wrong signal". "Everyone should come to us, we want investments to take place in Germany and in Europe," Klingbeil said in Durban, South Africa, on the sidelines of a gathering of G20 finance ministers. "And in this regard, the corporate taxation now proposed by the European Commission, in this form, sends the wrong signal." His comments echoed a statement from the German government on Wednesday expressing its opposition. "A comprehensive increase in the EU budget is unacceptable at a time when all member states are making considerable efforts to consolidate their national budgets," government spokesperson Stefan Kornelius said, also taking aim at the corporate tax element. The European Commission on Wednesday proposed a 2-trillion-euro ($2.31-trillion) EU budget for 2028 to 2034, with a new emphasis on economic competitiveness and defence and plans to overhaul traditional spending on farming and regional development. The Commission proposed several ways to raise more funds directly, including a new tax on companies doing business in Europe that have an annual net turnover exceeding 100 million euros in an EU country. "At first glance, much of what has now been proposed by the Commission does not meet with our approval," Klingbeil said, mentioning a tobacco duty estimated to raise 11.2 billion euros annually, which he said Germany also cannot support.
Reuters
6 days ago
- Business
- Reuters
Von der Leyen proposes EU budget boost to 2 trillion euros
BRUSSELS, July 16 (Reuters) - The European Commission on Wednesday proposed a 2 trillion euro ($2.31 trillion) EU budget for 2028 to 2034, with a new emphasis on economic competitiveness and defence and plans to overhaul traditional spending on farming and regional development. "It is a budget that matches Europe's ambition, that confronts Europe's challenges and that strengthens our independence," Commission President Ursula von der Leyen told reporters in Brussels. "The budget is larger. It is smarter and it is sharper. It delivers for our citizens and our business, our partners and our future." The Commission said its proposal amounted to 1.26% of the 27-nation European Union's Gross National Income - a measure of the size of the economy - compared to 1.13% for the current seven-year budget. Most of the funding for the budget comes from the governments of the EU's member countries. But the Commission proposed several ways to raise more funds directly, including a new tax on companies doing business in Europe that have an annual net turnover exceeding 100 million euros in an EU country. The proposal marks the start of years of intense negotiations before a final budget is agreed by all member countries and signed off by the European Parliament. The proposal includes a new 451 billion European Competitiveness Fund focused on boosting Europe's defence industry, fostering innovation and supporting the transition of industry across the bloc to clean technology. The proposal allocates 131 billion euros specifically to defence and space - a fivefold increase over the current level, according to the Commission. Those proposals reflect a desire to boost spending on new priorities after decades in which the vast bulk of the budget went on agriculture and regional development, known as cohesion policy, as it aims to reduce disparities between regions. But farmers and regions would still receive substantial funding, according to the proposal. It sets aside 302 billion euros to support farmers and a minimum of 218 billion euros for Europe's least developed regions, as well as 200 billion euros for global programmes. The Commission also pitched dedicating 100 billion euros for Ukraine outside of the budget's structure. Some EU countries and lawmakers were quick to criticise the proposal. "The EU is important for our prosperity, but the proposed budget is too high," Dutch Finance Minister Eelco Heinen said. Hungary's Prime Minister Viktor Orban said "globalist bureaucrats" were plotting to "drain Europe's money into Ukraine" while "our farmers are rising up to defend their future". "The EU Commission's budget proposal isn't just unfair, it's not even fit to be negotiated," he said on X. The European Parliament said the Commission's proposal was not big enough. "We cannot do more with less. New priorities need adequate new resources - not cuts to existing priorities," said Siegfried Muresan, a centre-right member of the European Parliament and a negotiator for the next EU budget. Budget debates are among the most difficult in EU politics, bringing to the fore political and economic divisions among member countries. The size of the budget, whether to link funding to political and economic reforms, how to fund EU expenditures and how to repay loans that financed the bloc's COVID pandemic recovery fund are all likely to be the focus of debate this time around. Kata Tutto, president of the European Committee of the Regions, said on X that the proposals to simplify funding hid "a MONSTER ... to swallow cohesion policy and crack its backbone by nationalising and centralising". Farmers held a protest in Brussels, with influential European farmers' lobby group COPA-COGECA calling the day European agriculture's "Black Wednesday". ($1 = 0.8645 euros)
Irish Times
6 days ago
- Business
- Irish Times
Proposed €2tn EU budget would increase funding for defence
A bigger European Union budget of nearly €2 trillion would see more money pumped into efforts to jump-start Europe's economic competitiveness, finance the defence industry and toughen border controls, while overhauling subsidies paid to farmers. The European Commission , the powerful executive that proposed the size and shape of the union's next long-term budget, said more funding was needed to meet major challenges facing Europe. In a significant revamp of how the EU's budget works, different funds for farmer subsidies, roads and other development projects in poorer parts of Europe, border control, fisheries and social policy, would be rolled into one large national pot for each country. Commission president Ursula von der Leyen said the proposed budget would 'ringfence' some €300 billion for subsidies paid to farmers. READ MORE The Common Agricultural Policy (Cap), which accounts for about a third of the EU's current €1.2 trillion budget, some €378 billion in total, is worth nearly €2 billion a year to Irish farmers. The Irish Farmers' Association (IFA), the main farming lobby group, criticised efforts by the EU executive to 'downgrade' the Cap in the next budget. The commission's proposal is the start of what will be a tense two-year negotiation between the EU executive body, the European Parliament and national governments, to hammer out a final budget. The next seven-year budget will run from 2028 until the end of 2034. The commission wants to set up a 'competitiveness fund' worth more than €400 billion to double research funding available under the EU's Horizon scheme, set more funds aside for digital investments, and significantly increase funding for defence and security. The EU's popular Erasmus scheme, which allows for university student exchanges, would also see its funding increase substantially. [ Trump's 30% tariffs would effectively cut off EU-US trade, Sefcovic says Opens in new window ] The commission has floated the idea of a 'crisis' lever that would allow up to €400 billion in funding be raised to finance loans to EU states, to cope with unforeseen future emergencies, similar to the Covid-19 pandemic. The commission's vision for the budget, which is the starting gun on what will be a protracted fight over its final size, was the result of marathon talks between the teams of Dr von der Leyen and the other 26 commissioners that ran through the night into the early hours of Wednesday morning. The budget does not propose increasing the contributions EU states pay into the union's budget. However, the commission proposed several ways it might raise money, including a tobacco excise duty and a charge on consumers to dispose of non-recycled electrical waste. The commission suggested the EU could introduce a money-raising levy on large companies, which the Irish Government and others are likely to oppose. The commission wants companies with an annual turnover of €100 million to pay the EU at least €100,000 a year, with higher rates charged for bigger firms. [ Farmers protest in Dublin over EU plans to merge Cap budget into single fund Opens in new window ] A majority of MEPs in the European Parliament need to approve the budget, as do all 27 national governments. Traditionally frugal states, such as the Netherlands and Sweden, have already signalled opposition to the increased size of the budget. The two biggest groups in the parliament, the centre right European People's Party (EPP) and the centre left Socialists & Democrats (S&D), pushed back on planned reforms of farm payments and regional development funding. Speaking in Brussels, Dr von der Leyen said the next EU budget would be 'larger, smarter, sharper'. 'Agriculture will be strengthened. What we have safeguarded is the direct payments to farmers, that is one part that is clearly safeguarded and secured,' the centre-right German politician said. The head of the commission said merging different EU funds into national pots could make it easier to divert money to housing, which was an area that did not fit neatly into any of the existing funding schemes. [ Ireland backs €150bn defence plan as EU moves to rearm Opens in new window ] EU commissioner for agriculture Christophe Hansen said the amount of funding set aside for direct payments to farmers would not be cut. 'What the farmers get remains stable and that was our priority,' he said. About €450 billion would be set aside for 'cohesion' funding for regional development, about half of which would be earmarked for poorer regions. Some €100 billion of the proposed budget would be put towards support for Ukraine. The budget will contain a clause allowing it to be renegotiated in the event a new country joined the union during the seven-year period. EU funding in the next budget will come with stricter 'conditional' strings requiring countries to respect the rule of law.
Reuters
6 days ago
- Business
- Reuters
Reactions to the European Commission's new EU budget proposal
BRUSSELS, July 16 (Reuters) - Following are some reactions to the European Commission's proposal on Wednesday for a 2 trillion euro ($2.31 trillion) EU budget for 2028-2034. The proposal places a new emphasis on economic competitiveness and defence while aiming to reform the rules around farm and economic development subsidies. An agreement on the new EU budget requires backing from all 27 member countries and sign-off from the European Parliament. "We can never accept that common EU funds go to countries that don't respect basic democratic principles and European values" "We won't solve the EU's problems with a bigger budget and increased EU contributions, rather through using current resources in a smarter way and putting money where it is really needed." "The proposed budget is too high. We should not always focus solely on how the EU can spend more, but rather on how existing funds can be spent better" "This requires tough choices. The financial contribution of the Netherlands to the EU is already significant. We therefore want to see an improvement in our net payment position ... As far as the Netherlands is concerned, new instruments for joint debt are therefore not on the table." "I welcome the ambition for the new multiannual financial framework presented today by the European Commission" "I will be ... in Brussels on Friday to defend our priorities: the rearmament of the European continent, supporting our competitiveness and technological sovereignty, the income of our farmers, and the creation of our own resources." "I welcome the presentation of the proposal on the EU long-term budget by the European Commission, a step which will allow the Council to start working. A budget is not just about numbers— it is the ultimate political decision, a choice about our future, and we need to approach this debate with an open mind and spirit of collective responsibility." LEAD MEMBERS OF EUROPEAN PARLIAMENT: SIEGFRIED MURESAN, CARLA TAVARES, SANDRA GOMEZ LOPEZ AND DANUSE NERUDOVA "This draft budget does not leave sufficient funds for critical priorities including competitiveness, cohesion, agriculture, defence, climate adaptation and the investment necessary for a sustainable economy that works for all." "Parliament stands ready to use all its powers to their full extent to ensure that the next long-term budget matches the Union's ambitions and challenges." "The inclusion of a 35% climate mainstreaming in the new budget shows the Commission is still serious about supporting decarbonisation efforts across the continent... This is essential to make the 90% climate target by 2040 achievable. It is however a wasted opportunity not to strictly exclude fossil fuel funding from the budget." "The restructuring of the budget puts at risk the EU's central role in fighting poverty, responding to global crises, and supporting those living in the Global South. The Commission is proposing to merge existing external action instruments into one called Global Europe. This move increases the risk that funding is diverted to serve short-term political gains, rather than used to tackle poverty and inequalities." "Madame President, your budget and CAP proposal are nothing more or less than a provocation towards the agricultural world. Rethink your approach! There will be no rise in Europe's power without food rearmament!"
