Victor Negrescu, a Socialists & Democrats (S&D) MEP from Romania and group negotiator on the 2024 EU budget, warns that the European Union’s Multi-annual Financial Framework (MFF), which guides European action, is facing significant challenges in light of the COVID-19 pandemic and the Russian invasion of Ukraine. The EU’s annual budget negotiations are compared to a ”plane in distress in a perfect storm”, emphasising the difficulty of the situation.

According to Negrescu, next year’s budget will prioritise issues of primary importance for Europeans, such as energy, migration, security, and defence. Therefore, it’s essential to  address these issues in a smart way and to ensure proper funding for flagship programmes, like Erasmus+ for education and youth exchanges.

In this context, the S&D MEP points out the need for a thorough revision of the current Multi-annual Financial Framework valid until 2027 to address these challenges and ensure the EU’s ability to respond to current and future crises. Therefore he adds that if governments and political groups do not make a genuine effort to address these financial challenges, the EU could find itself in distress during the ongoing crises.

Additionally, next year’s EU budget must go hand in hand with the MFF revision.

”If things don’t change, it will be getting less funding in 2024 than what the EU will be paying in interest rates”, warns Victor Negrescu.

The MEP says that although the European Commission claims that it can manage the situation and have no cuts in programmes in the proposed budget for 2024, the „reality is a bit more nuanced” as the MFF is stretched to its limits for several reasons:

• high inflation is making it difficult to keep up with spending.
• the annual budget margins are almost exhausted, leaving no room for responding to unforeseen events.
• humanitarian needs and conflicts at the EU’s borders require increased financial support.

Moreover, he states that Member States are contributing less to the EU budget, despite increased needs, with some contributing up to 22% less based on Gross National Income.

Taking all of the above into consideration, Negrescu adds that the EU’s ability to play a global role is questioned if there are insufficient financial resources to act both globally and within the EU’s neighbourhood.           

To ensure stability and well-being, the Social-Democrat MEP believes that the EU should focus on three key areas, as highlighted within the proposed amendments tabled to next year’s draft budget.

• Promoting social welfare, managing inflation and food prices, raising living standards and developing the €502 million Joint European Disaster and Crisis Response Mechanism
• Investments in innovation, re-industrialisation, SME support, infrastructure development and just transition worth €3.39 billion
• EU global actions for peacekeeping, support to Moldova and Ukraine, and humanitarian aid worth €3.2 billion

“Those who want a weaker Europe are now fighting to limit the European budget. In fact, those who support this measure want to make Member States vulnerable to Russia and destroy the relevance of the European Union internationally. If we want a strong Europe, we need European funds that reduce disparities, generate development and help Member States and their citizens to have a better standard of living”, says Victor Negrescu.

Additionally, the MEP stresses that new resources are needed to finance joint actions, and a solution may be taxing the super-rich or implementing an EU Financial Transaction Tax.