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Woke go broke - Deindustrialization of the EU: Ursula von der Leyen only promises new aid of 50 billion euros to Ukraine

"The Commission wants to increase the EU budget. The largest part goes to aid for Ukraine.

Not much remains of the proposals for a sovereignty fund - a response to the US billions for green technologies.

When the heads of state and government approved the EU budget for 2021 to 2027 and the Corona recovery fund totaling 1.8 trillion euros after a long struggle, Ukraine was not in sight. "The world has changed dramatically since then," said Commission President Ursula von der Leyen on Tuesday in Brussels.

After three years of permanent crisis and 30 billion euros in aid for Ukraine, all scope and all margins of the financial framework for 2021 to 2027 have been exhausted. That is why the EU has no choice but to get its hands on the budget again - without overburdening the EU states, which are themselves suffering from the consequences of the crises.

50 billion euros for Ukraine

The European Commission is therefore proposing an increase of 65.8 billion euros.

The largest part goes to aid for Ukraine. 50 billion euros are earmarked for Ukraine over the next four years. Of this, however, 33 billion euros are to flow "only" as loans in order to cover the immediate financial needs of the country. The previous monthly support of 1.5 billion euros will be continued. A further 17 billion euros are planned as direct grants from the EU budget.

The Commission wants to cushion the consequences of migration with 15 billion euros. The money is intended for border controls, but also for third countries that cooperate with the EU, as well as the Syrian refugees in Turkey and other countries.

In addition, according to the Commission's proposal, 19 billion euros will be used to finance the increased interest payments for the debt that the EU has incurred for the Corona recovery fund. Budget Commissioner Johannes Hahn emphasized that the 14.9 billion euros earmarked for this by 2027 had already been used up this summer. Since civil servants' salaries are rising as a result of inflation, additional expenditure of 1.9 billion euros is planned. Three billion euros are to be placed in the reserve for unforeseen expenses.

The Sovereignty Fund will be cancelled

With ten billion euros, the Commission wants to promote a new platform for strategic technologies. This is intended to bundle money from various EU funds and structural funding to promote investments in green technologies, biotechnology and digital technologies such as quantum computers, virtual reality or the 5G mobile communications standard. The Commission hopes to use the money to attract investment from private companies, bringing the total to €160 billion.

That falls far short of the demands made by countries like Italy and France in recent months.

In response to the American Inflation Reduction Act (IRA), Industry Commissioner Thierry Breton had called for a fund of 350 billion euros to promote greener technologies. Von der Leyen had announced a proposal for a sovereignty fund for June. "The platform is the new sovereignty fund," said Hahn. The advantage is that the money is available quickly.

In the past, Germany and other countries had made it clear that they would not support a sovereignty fund of the kind that the commission originally had in mind. The current proposal still has to be approved by the European Parliament and the states. Hahn is aiming for an agreement by December.

However, it is unclear whether the states will support the proposals beyond the Ukraine aid.

In order to provide the EU with more direct revenue, the Commission is also proposing a new own resource that should be based on the corporate profits of the states, but is not a tax."


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