Berliner Boersenzeitung - EU lawmakers back blockbuster long-term budget

The EU executive last year proposed a nearly two-trillion-euro ($2.3-trillion) long-term budget bazooka for 2028-2034 that includes paying off the bloc's coronavirus-related debt.

EU lawmakers rejected that proposal, and called on the European Union to rollover the debt to finance a 10-percent increase in spending and raise new money, notably through taxes on digital giants and online gambling.

Their desire for a bigger budget has pit them against EU nations including Germany, which has the bloc's largest economy. Berlin instead calls to cut spending in some areas.

Romanian EU lawmaker Siegfried Muresan, who will lead negotiations with member states, demanded a "strong" budget.

"The position of the European Parliament is clear: we believe we cannot do more with less," he said during a parliamentary debate in Strasbourg.

Time is of the essence, say top EU officials.

EU budget chief Piotr Serafin told lawmakers during the debate that a final deal on spending for 2028-2034 had to be completed by the end of the year.

Pointing to wars in Ukraine and the Middle East, Serafin said the EU "should not expect the years ahead of us to be easier, on the contrary. This is why a timely agreement on the (budget) is more important than ever".

There are also concerns about elections next year including in France and so the EU wants an agreement by the end of 2026 as officials fear a potential French far-right government in 2027 could throw negotiations into disarray.

Potential French presidential candidate for the far-right National Rally party Jordan Bardella slammed the scramble to get a deal before France's vote.

"How can we not be alarmed by these manoeuvres to provide the European Union with a budget before the French presidential election scheduled for spring 2027, contrary to the usual timetable, and all in order to force the hand of the next president?" he said.

Bardella also opposed the larger budget, describing it as a "headlong rush" that will cost the French taxpayers "20 billion euros".

The parliament's text will form the basis of its negotiations with member states, which usually have the final say over the budget.

But the member states are far apart on the issue, with France pushing for more joint borrowing and Germany and the Netherlands diametrically opposed.

(T.Burkhard--BBZ)