Aura Salla: The summer season brings EU budget discussions
A heatwave swept over Brussels. At the same time, preparations are underway for making major decisions regarding the EU budget. The Commission is expected to present a proposal for the EU’s Multiannual Financial Framework (the so-called EU budget) in July. The budget will define the EU’s long-term priorities from 2028 onward for the next seven years. For my part, I intend to promote the allocation of funds to the defense industry, digitalization, and the green transition. Cohesion policy needs to be reformed so that the amount of direct subsidies is reduced and more preference is given to loan based instruments. In addition, agricultural subsidies should be nationalized. However, this reform is a very long-term objective. Von der Leyen already stated in the spring that the fundamental pillars of the budget, cohesion and agriculture, will remain in place. During the Strasbourg plenary week in July, I plan to actively participate in discussions on the use of the budget and the allocation of funds. Behind the scenes, we are constantly engaged in advocacy work.
Denmark will assume the Presidency of the Council of the EU on July 1st. The main focus areas will be security and competitiveness. In terms of security, the aim is to concentrate on, among other things, supporting Ukraine and strengthening defense. That is a good approach. On the competitiveness front, the incoming presidency will highlight the Multiannual Financial Framework as one of its key priorities. The Danes have stated that the EU budget must be responsible and targeted. However, they are not ruling out increasing the budget or introducing joint debt. However, I still see no need to increase the Union’s shared debt. The signals about joint debt are concerning.
We must carefully consider how we use EU funds and make the most of existing financing programs. The InvestEU loan program is a good example of this. It has successfully leveraged private investments into genuinely viable and profitable projects by using EU budget funds as risk-sharing seed capital. We are currently working to simplify this loan program so that it can respond as quickly and comprehensively as possible to needs such as those of the defense industry.
A year has passed since the parliamentary elections. Comprehensive security and defense have been in the spotlight. Over the past year, we have received a number of proposals from the Commission, including five omnibus packages and the White Paper on Defense. These are now being examined in Parliament. Last week, the Commission presented the Defence Readiness Omnibus. The proposal paints a rosy picture of reallocating cohesion funds to defense. It also includes a promise to expand the role of the European Investment Bank and to mobilize significant private capital. In reality, this means relaxing the EU’s debt rules. The Investment Bank’s mandate also cannot be changed without unanimity from the Member States. Furthermore, the Commission wants to take out loans from the markets with the EU budget as collateral.
My public remarks regarding the reliability and dominance of Microsoft operating systems in Europe have received wide attention. The Microsoft example demonstrates that U.S.-based companies can, if they choose – or if required by the U.S. government – cut off European access to services. This is an extremely dangerous reality in the current geopolitical climate. Finland’s public sector, like that of the entire Union’s institutions, relies heavily on American systems. In public procurement, European alternatives must now be prioritized without delay. It is our duty as politicians to ensure a market where the development of European alternative operating systems is realistically possible. We must finally build an internal market that enables European companies to grow, compete globally, and ease regulation significantly, especially regarding data. We must also re-evaluate the EU-U.S. data transfer agreement, not least because the United States is no longer complying with its terms.
Aura
Member of the European Parliament, National Coalition Party, EPP
