EU CHARATION COMMENT: New budget has to set priorities!

EU CHARATION COMMENT: New budget has to set priorities!

Österreich, Land - The EU Department of Technology has today directed an urgent request to the Member States to align the upcoming long-term budget of the EU to political priorities more specifically. Jan Gregor, a member of the Court of Auditors, emphasizes the need to establish a balance between the expenditure priorities and the available means. The focus of the EU Commission focuses on investments in defense capacities and strategic areas for the next multi-year financial framework (MFR).

Negotiations on the new financial framework are of crucial importance, since it must be adopted unanimously by the EU countries and together with the European Parliament. The EU Parliament already requires more financial means, since the current expenditure on 1% of the gross national income of EU-27 is not sufficient. The current MFR has been running since January 1, 2021 and ends on December 31, 2027.

demands for simplicity and efficiency

The Court of Auditors also calls for simplifying the financial mechanisms and clarifying the expenditure requirements in order to increase efficiency. He warns that simplification must not be at the expense of accountability. Furthermore, a clear mandate for the Court of Auditors is required to comprehensively examine the expenditure in the upcoming EU budget.

An analysis shows that there is an opportunity to clearly define and systematically consider European added value in the new MFR. This includes the need to establish a closer link between the various EU funds and the EU funds with reforms in the Member States. The repayments for the Corona construction fund "Next Generationeu" must also be observed, with estimated repayment and interest payments of 25 to 30 billion euros per year from 2028.

Austria as a net payer

Austria appeared as a net payer almost every year and therefore pays more into the EU than flows back. Austria's average negative budget balance in the current MFR is -0.29% of gross national income. In addition, Austria received a gross discount of the annual ESD contributions of 565 million euros. For net guards like Austria, it is crucial that the new MFR creates a balance between the repayment of debts and future investments.

In 2023, Germany was the EU's largest net payer with a negative budget balance of -0.4% of gross domestic product (GDP). France and the Netherlands are also significant net payers, with their negative budget oalds being at -0.3% of GDP. On the other hand, Croatia, Latvia and Hungary are the biggest net receivers, measured by GDP.

The Situation of the net payers and net receivers

• Germany: -0.4% of GDP (17.4 billion euros)
• France: -0.3% of GDP (9.0 billion euros)
• Netherlands: -0.3% of GDP
• Croatia: 3.1% of GDP
• Latvia: 2.8% of GDP
• Hungary: 2.3% of GDP

net positions are crucial for financial circumstances within the EU. These are determined by the difference between the financial services to the EU and the services obtained. The economic, social and territorial inequalities within the EU are still a central topic.

According to its contracts, the EU promotes economic, social and territorial cohesion between the Member States. Therefore, a precise consideration of household balances alone is not sufficient to fully record the advantages and challenges of EU membership. The Court of Auditors plans to publish a position on the new commission proposal in the course of the second half of 2025.

For more information about the net guides and net recipients in the EU and the associated financial framework, visit the href = "https://www.bpb.de/kurz-knapp/Bahlen-und-fakten/europa/70580/nettozahler-und-nettoemfaenger-in-eu/"> bpb href = "https://de.statista.com/statistik/studie/38139/umfrage/nettozahler-und-nettoemfaengerlaender-in-der-eu/"> Statista .