Evening Briefing Scheduled for Wednesday
The European Commission, led by Ursula von der Leyen, has unveiled a proposed €2 trillion budget for the EU covering 2028 to 2034, marking a significant increase from the current 2021-2027 budget of about €1.21 trillion. This budget, dubbed as a "budget for a new era," aims to address Europe's strategic ambitions, independence, and key challenges.
The budget proposal is structured around three main pillars, with a focus on financial allocations conditional on compliance with rule of law standards, particularly targeting democratic backsliding in countries like Hungary. The plan also emphasizes flexibility to allow the EU to react quickly to unexpected challenges and priorities, and a focus on simplification and streamlining of funding programs.
Notable investments include substantial increases in defense and space (€131 billion, five times current spending), a strong boost to competitiveness, supply chain resilience, innovation, and clean technology development, and the introduction of National and Regional Partnership Plans to tailor investments and reforms locally for more effective cohesion and territorial impact.
However, the budget proposal has faced criticism. Environmental groups argue that it falls short on climate finance, despite earmarking €700 billion for green investments. Adjusted for inflation, this is actually a reduction compared to the current period, risking insufficient funding for ambitious climate and biodiversity targets.
Lawmakers have also expressed disappointment, accusing the Commission of presenting inflation adjustments as budget increases. The budget negotiations ahead are expected to be "protracted, gruelling, and explosive" as member states and the European Parliament battle over allocations.
Opposition is also strong among some member states who challenge the Commission's leadership style and the top-down nature of budget planning. The negotiations on the EU budget will be heated and may last for two years.
In other news, the Berlin Regional Court has granted former RBB intendant Patricia Schlesinger's lawsuit for payment of her January 2023 pension. Schlesinger, embroiled in a scandal surrounding her dismissal due to investigations for suspected embezzlement and abuse of power, is expected to sue for all other outstanding and upcoming pension payments.
Meanwhile, astronomers have observed the merger of two extraordinarily massive black holes using the gravitational wave detector LIGO, contradicting conventional models of stellar evolution. Elsewhere, the bread beetle has settled in the library of the over thousand-year-old Benedictine monastery of Pannonhalma in Hungary, affecting a quarter of the holdings.
In international trade news, Indonesia has reached an agreement with the American government in the customs dispute, imposing a 19 percent customs duty on Indonesian products. However, the cannabis experiment in Thailand has failed.
This article serves as a snapshot of the current state of affairs in Europe and beyond, highlighting the ambitious EU budget proposal, ongoing controversies, and various other significant events. The coming years promise intense debates and negotiations as the EU institutions and member countries work towards finalizing the budget for the 2028-2034 period.
The proposed European Commission budget for 2028 to 2034, with a focus on allocating funds contingent on rule of law compliance, targets key investments in areas such as defense, competitiveness, and clean technology. However, criticism has been levied against the proposal, as environmental groups contend it lacks sufficient climate finance, despite designating €700 billion for green investments. Furthermore, political tensions are expected to escalate during the multi-year budget negotiations due to concerns about the Commission's leadership style and the top-down nature of the budget planning process. The outcome of these negotiations and the eventual budget allocation will significantly affect the general news landscape, policy-and-legislation, finance, business, and overall economic and social policy within the EU.
