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BackA new Communication on the EU financial framework has now started the official discussion on a reform of the budget of the European Union. Behind the scenes, however, negotiations have been ongoing for months, who should benefit from the EU funds. What is particularly conspicuous is the fact that the Commission hardly mentions its Common agricultural policy in the 28-page strong work. It just devotes slightly more than a page to the area, which in 2009 alone, received € 50 billion or 45 percent from the total funds of the EU budget. A more positive aspect is the fact that the Commission uses its targets regarding a future EU budget to declare its expressive support for a higher employment rate, better education and to combating poverty.
According to EU Budget Commissioner Janusz Lewandowski, it is the intention to orientate the funds for the Common agricultural policy towards "green targets", such as climate or environmental protection. The amount of the direct payments to agricultural enterprises varies from farmer to farmer respectively between the Member States. Lewandowski would like to reduce the large differences between farming enterprises.
One of the core subjects of the European Commission are the so-called EU2020 targets, which among others aim at an increase of the employment rate of 20 to 64-year olds to at least 75 percent, a reduction of the share of early school leavers of 10 percent, 20 million fewer people in poverty and a reduction of greenhouse emissions by at least 20 percent. The EU budget shall provide incentives to make it easier to achieve these targets.
Apart from that, the Commission announces the creation of new funds, which, with an obviously higher volume, are supposed to promote and support green technologies and services. These funds shall help to meet the challenges of resource efficiency, climate change and energy security from a budgetary point of view.
The Commissioners want to tread new paths with regard to revenue side. Instead of the annual payments from the national budgets, the Commission proposes a separate tax at EU level, which should flow into the EU budget. Hence, the basis for the tax could be the financial sector, revenue from the CO₂ certificate trade or an energy or corporate tax. It is a hardly known fact that the Commission for decades had its own funds in form of customs received at the EU border, which at the end of the 1980ies almost covered 30 percent of budget expenses, whilst today it has shrunk to just about 12 percent.
Another novelty is the announcement by Budget Commissioner Lewandowski to publish a proposal for an EU financial framework for the period from 2014 to 2024 in June 2011. So far it has been normal to publish a seven-year financial plan.
Further information:
AK EUROPA position paper on the EU financial framework 2014+
One of the core subjects of the European Commission are the so-called EU2020 targets, which among others aim at an increase of the employment rate of 20 to 64-year olds to at least 75 percent, a reduction of the share of early school leavers of 10 percent, 20 million fewer people in poverty and a reduction of greenhouse emissions by at least 20 percent. The EU budget shall provide incentives to make it easier to achieve these targets.
Apart from that, the Commission announces the creation of new funds, which, with an obviously higher volume, are supposed to promote and support green technologies and services. These funds shall help to meet the challenges of resource efficiency, climate change and energy security from a budgetary point of view.
The Commissioners want to tread new paths with regard to revenue side. Instead of the annual payments from the national budgets, the Commission proposes a separate tax at EU level, which should flow into the EU budget. Hence, the basis for the tax could be the financial sector, revenue from the CO₂ certificate trade or an energy or corporate tax. It is a hardly known fact that the Commission for decades had its own funds in form of customs received at the EU border, which at the end of the 1980ies almost covered 30 percent of budget expenses, whilst today it has shrunk to just about 12 percent.
Another novelty is the announcement by Budget Commissioner Lewandowski to publish a proposal for an EU financial framework for the period from 2014 to 2024 in June 2011. So far it has been normal to publish a seven-year financial plan.
Further information:
AK EUROPA position paper on the EU financial framework 2014+