Brussels, 2 November 2023 (TDI): The European Union, a 27-member bloc, is gearing up for a review of its common budget, a pivotal moment in its history.
However, the Member States find themselves at a crossroads with little enthusiasm for the daunting €100 billion financial commitment requested by the European Commission.
Moreover, an extraordinary 750 billion euro budget paired to give member states help recover from the COVID-19 pandemic.
Still, Brussels believes that figure no longer accurately reflects the state of the economy after a series of crises, most notably the terrible war raging on the bloc’s doorstep.
However, to help Ukraine control migration, prepare for natural disasters and promote cutting-edge technologies, the European Commission has recommended a review worth almost €100 Billion.
European Commission President Ursula von der Leyen said in June “We are in a completely different world than 2020” when she first unveiled the planned overhaul.
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Furthermore, a distinct allocation of 10 billion euros is set aside for the establishment of the Strategic Technologies for Europe Platform (STEP).
Although, it constitutes a shared resource pool aimed at bolstering cutting-edge technologies within the European Union.
Concurrently, an allotment of 18.9 billion euros has been earmarked to service the debt incurred to fund the 750 billion euro stimulus plan.
Albeit, which notably, has witnessed a substantial increase in interest rates since its inception in 2020.
Additionally, there is a provision of 3 billion euros to reinforce the flexibility instrument and enable the handling of unforeseen crises, along with a further 1.9 billion euros to defray administrative costs.
It is imperative to underscore that out of the total sum of 98.8 billion euros, an onerous financial burden amounting to 65.8 billion euros is to be shouldered directly by the member states of the European Union.
Nevertheless, it is paramount to acknowledge that the proposal has encountered scepticism and bewilderment from the majority of European Union leaders.
The backdrop of a recession, escalating energy costs, and a more stringent monetary policy regime exacerbate this scepticism.
Interestingly, the solitary voice of opposition to this proposal emanates from Hungarian Prime Minister Viktor Orbán, who has publicly voiced his dissent.
Conversely, new Slovak Prime Minister Robert Fico has articulated a demand for additional safeguards to be implemented, to safeguard the allocated funds from the pervasive issue of corruption that prevails within Ukraine.
In his critique, Viktor Orban articulates that the Commission’s request for increased financial resources is predicated on the objective of facilitating both the integration of migrants and the support of Ukraine, two objectives that Hungary is resolutely against.
