Debate on the Next EU Budget Framework

WIFO Economist Margit Schratzenstaller at the Europe Club Vienna
The negotiations on the EU budget framework for the years up to 2027 were at the centre of a discussion of the Europe Club Vienna on 19 February 2020 with Margit Schratzenstaller (WIFO), Martin Kocher (Institute for Advanced Studies), Wilhelm Molterer (European Fund for Strategic Investments), Martin Selmayr (European Commission's representation in Austria) and Paul Schmidt (Austrian Society for European Policy).

How must the forthcoming EU budget be designed to meet the requirements of the member countries and the expectations of EU citizens? Will the EU succeed in generating additional revenue with new own resources without burdening national budgets? Can the EU efficiently meet the current challenges with the financial resources made available or will it remain halfway there with its possibilities?

According to Margit Schratzenstaller, for a sustainable EU budget the member countries would have to overcome their net payer or receiver mindsets. The key to this would be to strengthen spending with European added value and to finance the EU more strongly from innovative own resources. In particular, "green" own resources would be suitable to replace a part of the national contributions of the member countries. Potential possibilities would be taxes on air traffic or revenues from border adjustment for the EU Emissions Trading System, which could contribute to achieving the EU's climate targets. For the member countries, the reduction of national contributions would create leeway to reduce other taxes, such as the high taxes on labour.