Council Rejects Unified Fund and Common Debt for MFF 2028–2034 Decision
The latest General Affairs Council meeting in Brussels revealed significant discontent among EU member states regarding the proposed Multiannual Financial Framework (MFF) for 2028–2034. The European Commission’s proposal faced near-unanimous criticism, highlighting deep divisions and varied concerns among member nations.
Council Rejects Unified Fund and Common Debt Proposal
Ursula von der Leyen, the President of the European Commission, attempted to soothe tensions with a letter. However, it received little support, with member states demanding more clarity and solutions. Spanish and French ministers, Fernando Sampedro Marcos and Benjamin Haddad, declared that the response was insufficient, calling for further adjustments.
Concerns Over Agricultural and Cohesion Policies
A central point of contention is the proposal to merge the Common Agricultural Policy (CAP) and cohesion policies into a single fund. This suggestion has met opposition from ministers of 13 member states, including Belgium, Italy, and Greece. Italian Minister Tommaso Foti emphasized the need to preserve long-term investment in cohesion programs, suggesting that merging these policies would jeopardize their individual effectiveness.
- Countries opposing the merger: Belgium, Croatia, Greece, Ireland, Italy, Latvia, Lithuania, Poland, Czech Republic, Romania, Slovakia, Slovenia, Hungary.
- Key concerns: Preservation of long-term investments and maintaining distinct policy frameworks.
Financial Implications and National Contributions
Financial discussions quickly escalated, especially among the “frugal” countries—Austria, the Netherlands, and Sweden. They raised alarms over the proposed budget of nearly €2 trillion for the MFF 2028–2034. Austria urged for the retention of budget rebates, while Sweden insisted on creating a more efficient budget rather than simply a larger one.
- Austrian Position: Maintain budget rebates beyond 2028.
- Swedish Position: Oppose increased national contributions, advocating for budget improvement instead.
Malta also expressed concerns about increased national co-financing, deeming it unsustainable for its economy. Spain’s stance further complicated matters, with Sampedro Marcos stating that any budget lower than the Commission’s proposal should not be considered.
Resistance to Common Debt Instruments
The Netherlands and Sweden lead an alliance against common debt instruments, supported by Finland and the Czech Republic. David Van Weel, the Dutch Minister for European Affairs, criticized the existing national debt levels among member states, adding to the complexity of financial negotiations.
Calls for Modernization
Amidst the criticism, only Germany’s Gunther Krichbaum advocated for modernization of the budget, suggesting that the EU must adapt to new challenges, including defense and support for Ukraine. He questioned whether current practices were viable moving forward.
The meeting underscored the need for further negotiation between member states and institutions, with the Irish representative Thomas Byrne emphasizing the importance of ensuring that state perspectives are considered in discussions moving ahead.
The ongoing debate points toward a challenging path for EU budget discussions as member states navigate their differing priorities and financial concerns in the lead-up to final decisions on the MFF for 2028–2034.
