The European Commission must clarify how it plans to fund the Green Deal and other new policy proposals within the EU’s 2021-2027 budget, the European Parliament’s budget committee has urged.
During a debate with budget commissioner Johannes Hahn (pictured) on 22 January, members of Parliament’s negotiating team for the EU’s next long-term budget expressed concern that the commission’s budget proposal for how the EU should spend its money over the next seven years does not add up.
The EC published a negotiation position with figures in May 2018. After a new commission, headed by Ursula von der Leyen took over 1 December 2019, new policy priorities were presented, including the European Green Deal with a Just Transition Fund, which needs investment finance.
Jose Manuel Fernandes, one of the negotiators, said: “With the European Green Deal and the commitments made by the new commission, you have to ensure that there is an update, at least a technical update, to revise the figures regarding new actions and new priorities. As we have always said ‘new priorities need new additional money’.”
Without agreeing to change the EC’s long-term budget proposal, Hahn said the €7.5bn proposed for the Just Transition Fund “comes on top” and should be considered as “fresh money”.
German Greens member Rasmus Andresen, on Parliament’s negotiation team, said: “We are going to have to find a way to think of the [long-term budget] and the European Green Deal as a single package and further adaptation is necessary.”
Proposals include a reform of the revenue side so that the EU has more own income resources, such as a new corporate tax scheme, including taxation of large companies in the digital sector, revenues from the Emissions Trading System and a levy on plastics.
According to the latest Eurobarometer survey, nearly 60% of respondents from all EU member states think their country has benefited from EU membership and want the European Parliament to play a bigger role. They want the EU to work together on cross-border issues such as climate change.