Council Rejects Calls for EU Budget Improvement, Maintains Current Cuts
What happened
The Council of the European Union rejected calls for budget improvement, maintaining current cuts to the long-term EU budget proposal prepared by the European Commission. Mohammed Chahim, speaking for the Socialists and Democrats, stated that the announcement falls short of what is needed, asserting that it is impossible to do more with less. The Irish Presidency of the Council of the EU presented the revised negotiating position for the Multiannual Financial Framework.
Why it matters
The dispute over the Multiannual Financial Framework (MFF) and the lack of new EU-level revenue streams raises questions about the EU's economic capacity. The rejection of calls for a stronger budget risks impacting the EU's ability to deliver resources for cohesion, social, and agriculture challenges.
A proposal from the European Commission is currently being examined by both the European Parliament and the Council of the European Union.
Who's involved
- European CommissionPrepared the long-term EU budget proposal.
- European CouncilRejected the call for budget improvement and maintained current cuts.
- European ParliamentIts position was called for dramatic improvement by MEP Mohammed Chahim.
- IrelandThe Irish Presidency of the Council of the EU led the negotiations.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- European Investment BankSpeculative
The weakening of the EU budget might constrain the European Investment Bank's financial mandate.
- DenmarkSpeculative
Denmark might see its economy affected by the regulatory framework and MFF funding.
- AustriaSpeculative
Austria might see its economy affected by the regulatory framework and MFF funding.
Keep exploring
Part of
European Union debates on trade, climate, and industrial policyAlso in this story
- The European Parliament committee voted to scale back net-zero ambitions, while ACEA praised proposed legislative changes.
- The European Commission proposed an industrial accelerator act considering Turkish-origin content, which the Council and Parliament must now adopt.
The entities involved
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European Parliament
parliament of the European Union directly elected by the citizens of the Union
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European Council
institution of the European Union defining the EU's general political direction and priorities and consisting of heads of state or government of the EU's member states
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European Commission
executive branch of the European Union