Parliament Makes Demands for Changes to EU Expenditures
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Parliament Makes Demands for Changes to EU Expenditures

Government CIO Outlook | Monday, December 26, 2022

MEPs want the EU's seven-year budget to implement green and digital policy while allowing for some flexibility in times of crisis.

FREMONT, CA: The European Parliament approved its demands for the upcoming review of the EU budget. They ask the European Commission to change the spending regulations to allow for more flexibility in handling crises and to prevent funds intended for cohesion or research from being diverted to address new problems.

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The assessment needs to include more funding to support ongoing EU projects like the European Sovereignty Fund and the Chips Act for the semiconductor industry. They believe that their budget's architecture and structure need to be reconsidered. It is not enough. The request follows the conclusion last month of yet another protracted and challenging round of budget negotiations between the Parliament and EU member states. MEPs are worn out because there is a constant battle over how much of the stretched budget should go where.

This year's heated discussions were made even more difficult by the consequences of Russia's conflict in Ukraine, the energy crisis, and the rise in inflation, leading MEPs to proclaim the current budget and its regulations unsustainable. Although the Commission has previously stated that it will conduct a voluntary assessment of the budget the following year, the Parliament wants to ensure that it results in reform. The co-rapporteur for the motion from the Parliament, a review, a simple review, is not enough. Budget changes are required. It's not just a matter of having more money; the budget needs to be changed and amended so that it can respond to any problems that arise.

Instead of the present deadline in the summer of 2023, MEPs would like the Commission to submit a proposal in the first quarter of 2023. The EU budget commissioner did not pledge to boost financing or amend the criteria. because the pledge for a seven-year budget review is not a commitment to propose a change.

However, in light of fresh crises and increasing inflation, serious contemplation is necessary. The union budget must continue to allow us to carry out our policy priorities, thus the Commission will carefully evaluate the viability of the expenditure ceilings and sub-ceilings of the present [seven-year budget].

The final report advocating for a revamp had the opportunity to include demands from each of the Parliament's committees. ITRE, the industry, research, and technology committee, used the occasion to call for increased funding for the EU's open strategic autonomy, defence, and resources to address the energy crisis.

Funds for new efforts must be increased rather than taken away from already-funded initiatives like the Horizon Europe research programme. This covers both the New European Bauhaus cultural innovation initiative, for which the MEPs are asking for Euro 500 million in additional funding and the Chips Act, which the Commission now wants to root in Horizon and shift Euro 450 million from other research fields to cover the expenditures. A 60 million Euro yearly fellowship programme for vulnerable scholars is among the other objectives.

Additionally, the MEPs want more funds to be allocated to public-private partnerships through Horizon Europe, increasing funding for industrial clean hydrogen and digital technology research and innovation as well as for the EU's space and defence research programmes.

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