On Wednesday, 23 April, the European Parliament Budgets Committee established its priorities for the next long-term EU budget. MEPs emphasised the need for a significantly more ambitious long-term EU budget, as it comes at a time of escalating geopolitical tensions and global instability.
MEPs argued that the current spending of 1% of the EU-27’s gross national income (GNI) is also not enough to address the growing number of crises and challenges – especially with the U.S. retreating from its global role.
The idea of replicating the “one national plan per member state model” used in the Recovery and Resilience Facility for post-2027 spending in member states has been opposed by MEPs. Instead, they are advocating for a structure that ensures transparency, involving regional and local authorities and all relevant actors.
Additionally, MEPs have considered the Commission’s proposed Competitiveness Fund as inadequate, asking instead for a new targeted fund designed to leverage private and public investment through EU-backed de-risking mechanisms, building on the success of instruments like InvestEU and the Innovation Fund. Unnecessary red tape must be cut for those benefiting from EU funding. MEPs have also advocated for a simpler budget that is also more transparent.
There must also be a degree of flexibility in spending, with crisis-response capabilities built into the long-term budget for each policy area. MEPs are calling for two additional special instruments: for disaster relief and for other unforeseen challenges.
Moreover, MEPs have requested that the repayment of NextGenerationEU borrowing costs not jeopardise funding for EU priorities. The report urges the Council of member states to adopt new, genuine revenue resources for the sustainable financing of borrowing and of Europe’s higher spending needs – MEPs consider joint borrowing a viable option for tackling EU-wide crises.
The European Parliament’s Budget Committee’s position on the next long-term EU budget reflects a clear shift towards a future and crisis-proof financial framework. MEPs are arguing for a significant increase in the EU budget, stating that the current level of spending is insufficient in the face of escalating geopolitical tensions and global instability. Overall, the MEP’s position represents a proactive and ambitious shift for the EU budget – advocating not only for increased funding but also for smarter, more strategic, and more resilient financial planning.
