Ursula von der Leyen Demands More Money from EU Countries, Austria Refuses
Interest rates, crises, and aid to Ukraine are pushing the EU budget to its limits, causing tension between the EU Commission and member states. The President of the EU Commission, Ursula von der Leyen, is demanding more money from the member states to address these challenges. On Tuesday, she called for an additional 66 billion euros from the 27 EU countries.
However, the first rejection came from Austrian Chancellor Karl Nehammer, who declined to deposit more money. Nehammer suggested that the additional funds should be raised through savings in the current budget. He argued that with a budget of a thousand billion euros, it should be possible to overcome the budgetary challenges through reallocations.
The EU’s tight coffers are a result of various factors, including support for Ukraine, inflation, the corona pandemic, rising interest rates, and the energy crisis. The European Union has borrowed heavily in recent years, and the burden of interest rates is now affecting the EU budgets.
Finance ministers from other net contributor countries are also skeptical about the plans from Brussels. German Finance Minister Christian Lindner and Dutch Finance Minister Sigrid Kaag both believe that it is the wrong time to ask for more money. They suggest that von der Leyen should shift funds within the EU budget and make cuts where necessary.
However, one budget item that critics do not want to shake is support for Ukraine. Over the past 16 months, Ukraine has received more than 70 billion euros in aid from the EU. The EU Commission plans to provide another 50 billion euros to Ukraine from 2024 to 2027, but this plan still requires approval from the member states.
Ukrainian Finance Minister Serhiy Marchenko welcomed the planned EU aid but expressed concern that it will not be enough to cover Ukraine’s financial needs. He emphasized that peace in Ukraine will come at a high cost, and the country will continue to depend on the EU’s financial support well beyond 2027.
The debate over the EU budget and the allocation of funds is ongoing, with member states expressing different views on how to address the financial challenges. It remains to be seen how the EU Commission and member states will reach a consensus on this issue.her 14 billion euros should flow into the country. This is intended to support Ukraine in its economic and political reforms and to counteract Russian influence.
The EU’s financial support for Ukraine is seen as crucial in maintaining stability in the region. However, it remains to be seen whether the member states will be willing to provide the necessary funds.
Overall, the EU budget is facing significant challenges due to various factors. The demands for more money from the member states are met with skepticism from some finance ministers, who argue for cuts and reallocations instead. The issue of additional funds for Ukraine remains a contentious topic, with many agreeing on the importance of continued support for the country.
As the discussions continue, it remains to be seen how the EU will navigate its budgetary challenges and ensure the necessary funds for its various priorities.
How can member states of the EU ensure they are contributing their fair share to overcome financial hurdles and avoid cuts to important programs within the current budget?
Ithin the current budget instead.
In response to the pushback, von der Leyen emphasized the importance of addressing these challenges and warned that failure to do so could result in cuts to important programs. She called for solidarity within the EU and for member states to contribute their fair share to overcome these financial hurdles.
The tension between the EU Commission and member states highlights the difficult task of balancing budgets and addressing multiple crises simultaneously. As the EU continues to face economic challenges and increasing demands for financial support, finding a consensus among member states will be crucial in navigating these complex issues.
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It’s concerning to see the EU’s budget reaching its limit. While Ursula von der Leyen’s demand for more money from member states may be necessary to address the challenges ahead, it’s crucial that fiscal discipline and transparency remain at the forefront to ensure the efficient and responsible use of these additional funds.
It’s troubling to see the EU budget reaching its limit already, especially with demands for additional funding. It raises concerns about financial management and the ability to effectively allocate resources. Member states must carefully consider the implications and prioritize transparency and accountability in this process.