The European Union’s extraordinary summit dedicated to the review of the multiannual budgetary framework could be turbulent; It is very likely that Hungarians will get an offer they cannot refuse: either they will accept the reform, or they will be denied their right to vote, predicts PiS MEP Bogdan Rzońca in an interview with PAP.
The need to revise the Multiannual Financial Framework (MFF) mainly stems from the higher than estimated costs of loans under the NextGenerationEU Covid Fund. Currently, the European Commission estimates that the total cost of the loan will be approximately 220 billion euros, or more than 25%. total – of which we will pay PLN 3.3 billion for interest repayments next year. In addition, it is necessary to allocate more money for energy transformation and the development of new technologies
– recalls MEP Rzońca, member of the European Parliament’s Committee on Budgets.
He also noted that “a lack of review would ultimately lead to a lack of resources to fulfill the EU’s traditional commitments such as cohesion policy.”
New funds to help Ukraine
He also noted that new funds are also needed to help Ukraine.
Support mechanism for Ukraine – the so-called Ukraine Facility – aims to counter the economic and social consequences of the war and gradually integrate Ukraine into the EU economy. As for the cost of this instrument and its impact on debt, the amount allocated for grants to Ukraine is 2.5 billion euros per year for four years. The rest of the 50 billion euros will take the form of a loan. However, it is considered that Ukraine will not be able to repay the loans on time, and therefore the loan part of the instrument is likely to take the form of a grant. This will increase the EU debt
– predicts Rzońca.
The Polish MP explained that the idea is essentially to create “financial space” in the “reformed” MFF, both to pay for higher interest costs and to help Ukraine.
According to the politician, new expenses would be easiest to finance from the increased membership contribution, but the so-called do not want to talk about that. net payers.
What remains is the search for the so-called new own resources. The latest project in this area – approved by Parliament – envisages, among other things: transferring as much as 30% to Brussels. income from the sale of ETS (EU Emissions Trading System) licenses, which we are not happy with, because this money should remain in Poland to support the Green Transformation
– said the PiS member.
No reasons for optimism
Taking all this into account and looking at the latest signals about the readiness of Member States for a real, ground-breaking reform of the IFF, I cannot find any reasons for optimism. The reluctance of Member States – especially net contributors – to increase contributions and the lack of a final agreement on own resources means that an agreement – even if one were reached – would be rather modest. Only the support mechanism for Ukraine (50 billion) is not at risk of cuts
– predicts Rzońca.
According to him, a lot can happen at the top. First of all, we should expect that the Hungarians will be put against the wall and given an offer they cannot refuse: either they will accept the reform (including PLN 50 billion for Ukraine), or they will be denied their right to vote. The introduction to this approach is the EP resolution adopted at the last session in Strasbourg, which, among other things, calls for Art. 7 section 2 of the Treaty on European Union, which is the first step towards disenfranchising,” the MEP said.
If a final showdown were to take place, Hungary’s fate would depend on whether at least one member state would support the country in the dispute with the EU in the initial stages. As of today, it looks like it could be Slovakia. If Hungary succumbs to blackmail, or if it blackmails the Commission by forcing it to release another portion of the frozen funds, an agreement might be reached, but in a very modest form.
– summarized Rzońca.
gah/PAP
Source: wPolityce