Ahead of an EU summit starting Thursday, the four Visegrad countries have criticized the rotating Finnish presidency of the European Union over a proposal concerning the new multiannual budget. Poland, Hungary, the Czech Republic, and Slovakia not only disagree with the budget’s size but also reject the possible penalties for EU countries that do not comply with EU rules.
Upon the inauguration of a new European Commission, Brussels also regularly establishes a new multiannual budget, which is based not only on existing agreements and procedures. The new multiannual report also includes funding for the wish lists of the new European Commissioners.
Based on existing agreements, the EU now wants to check, when granting subsidies and funds to countries, whether such EU countries comply with existing EU rules. In this case, Poland and Hungary face the threat of receiving fewer subsidies due to their judiciary not being transparent enough and their discrimination against foreign organizations.
Promotion
EU presidency Finland has held consultations with all EU countries over recent months, as well as with the current European Commission and the new Commission president Ursula von der Leyen. The political leaders of the factions in the newly elected European Parliament were also consulted.
Based on those consultations, the new multiannual budget maintains the system where about one-third of subsidies are spent on agriculture, making it the largest EU expenditure item. It remains highly questionable whether the European Parliament will accept this, as these agricultural subsidies must now also be viewed from the perspective of Sustainability and Climate Policy. Until now, there was an impression that any cuts would mainly occur in this sector.
In March, the European Parliament issued an opinion on the Commission’s draft budget for 2021-2027. It called for an increase from 1 percent to 1.3 percent of the combined gross national product. In July, the heads of government responded with their own position, wanting to keep the maximum at the current 1 percent. The European Commission states that an increase to 1.13 percent is necessary. Negotiations are ongoing to reach an agreement among the three EU bodies in the first half of 2020.
The Finnish presidency prepared a document ahead of the EU summit to facilitate discussion, based on a questionnaire it sent to Member States last July. According to the document, Member States differ on their total contribution to the future MFF (multiannual financial framework), ranging from 1.00% of the GNI of the EU27 to the Commission’s proposal of 1.11%.
Consequently, the Finnish presidency sticks to a division of one-third for industry funds, one-third for agriculture, and one-third for other policy areas. All other desires for new policies must be paid for by cuts elsewhere in the budget.
A diplomat from a Visegrad country told journalists he hoped the Finnish note would not form the basis for discussion and reminded that at least two of the Visegrad countries consider the penalty issue a ‘no-go.’ At the same time, he acknowledged that the Netherlands would not agree to the new multiannual report without the new sanctions.
The Visegrad Four also have a joint position to strongly support opening EU accession negotiations for North Macedonia and Albania. But a diplomat acknowledged that French opposition would likely not change.