The financial situation forces the EU to search fresh sources of income

The draft fresh financial framework of the European Union for the period 2028–2034 has met with many criticisms. – It's never been so false. – evaluates the Euro MP Janusz Lewandowski. The European Commission's proposals are mainly accused of over-centralisation, which may undermine the decision-making of national self-governments. The thought of creating the EU's own resources from part of the taxes collected from nationals of associate States can besides be hard to push.

– Common criticism concerns how much president Ursula von der Leyen centralised this budget. He is built on 1 national plan, now already called regional, 1 plan for agriculture, specified a large boiler in which is everything, due to the fact that there is inactive fishing and a fewer another budget expenditures – says Newseria news agency Janusz Lewandowski, associate of the European Parliament, erstwhile EU Commissioner for Budget and Financial Programming.

The budget of the fresh EU position is expected to be more flexible to let faster consequence to crises and fresh priorities. alternatively of reimbursement of expenses, the strategy is to be based on results. Payments will depend on the accomplishment of circumstantial milestones and targets. associate States will set up integrated national and regional plans to programme funds from a number of funds (e.g. ERDF, FS, ESF+). The conditionality mechanics of 2021 is maintained, allowing backing to be stopped in the event of violations of the regulation of law. The priorities of the fresh budget are innovation, digitisation, competitiveness and green transition, as well as investment in defence and security.

– Centralism of spending funds is risky, besides looking at the function of Polish local governments in the usage of European funds. It can be peculiarly dangerous if it is connected with the mechanics of conditionality related to the regulation of law, due to the fact that in case specified a mechanics was activated, it is very easy to deprive the inhabitants of Polish local governments of an crucial part of the funds, and most likely the central government would then blame the bad European Union for taking money from Poles – assessed Marek Tatała, president of the Foundation for economical Freedom.

The EU budget for the period 2028–2034 is expected to amount to almost EUR 2 trillion against EUR 1.2 trillion in the erstwhile perspective, of which a crucial part was allocated to: competitiveness (approximately EUR 515 billion), agriculture and cohesion (approximately EUR 300 billion), external action (approximately EUR 190 billion) and investment in people (including education, e.g. Erasmus+, around EUR 40.8 billion). Poland will receive the largest resources, over EUR 123 billion, mainly for investments in infrastructure, energy transformation and innovation. This is most likely the last budget in which our country will be a net beneficiary.

– We expected the coming budget to put us as a net contributor. This is not going to be good news, but we must bear in head the complexity of this fresh concept that the European Commission has presented. I think that it will inactive evolve on how to allocate funds to envelopes, including those for individual associate States and their interior management - Convinced by Przemysław Litwinik, associate of the Monetary Policy Council.

In the plan of the fresh multiannual financial plan of the European Union, the gross sources for the common budget, which would come from taxes, excise duties or a fresh version of the ETS2 emissions trading system, are crucial.

"New sources of budget supply are truly essential for many reasons. Unfortunately, it is simply a long way from their announcement to ratification in national parliaments, due to the fact that all forms of taxation are and will be their prerogative. I failed as Commissioner to build any fresh sources of European budget supply – Janusz Lewandowski admits.

– This is simply a model that appeared at the KPO, but is controversial, is highly delicate in reception and will most likely require legal ratification by the parliaments of the associate States, including the Polish Sejm and legislature – points to Przemysław Litviniak. – This is an area that raises certain concerns and threats, primarily due to the fact that our public finances are in mediocre condition and subtracting our share of the duties collected in favour of the European Union or our share of excise work on the sale of tobacco products will have consequences for the binding of the Polish budget. I think the Polish Minister of Finance will actively participate in talks on this subject.

According to Marek Tatała, the thought of redirecting any of the proceeds of excise duties on tobacco products to the European Union's budget could make a dangerous precedent that would open the way for discussion about access to excise duties on alcohol or fuel.

– The cost of this taxation alone is about PLN 4.5 billion a year and so much would should be found by the Minister of Finance, who thinks of the excessive deficit procedure, that we gotta reduce public debt, due to the fact that we have a very fast growth in the forecasts – evaluates the president of the Foundation for economical Freedom.

In his opinion, changes related to excise work may in the future consequence in the EC interfering with rates, suggesting an increase in rates.

– Poland should sceptically look at expanding these own resources and call for simply to focus on the spending side, see which EU funds have so far been spent inefficiently, which have not responded to the global challenges facing Europe, alternatively than aiming for fresh taxes that may besides hit our economy Marek Tatala emphasizes.

On the proposal of the fresh financial framework, which saw the light of day in July this year, experts discussed during the panel "A fresh budget for the European Union. What can Poland gain from it and what can it lose?” held during the European Forum of fresh Ideas in Sopot.