Debate: Presentation by the Council of its position on the draft general budget -  financial year
Date: TUESDAY, 13 SEPTEMBER 2022
Speaker: Johannes Hahn
Language: EN

Let me also make some remarks. It will not come as a surprise that my assessment is rather critical. I believe the Commission’s proposal is well-balanced and respects the long-term budget. It also includes all the new elements known at the time, while leaving room for manoeuvre, both as regards margins and special instruments. We continue to deliver the Union’s political priorities to stimulate the recovery and facilitate the green and digital transition, while always ensuring EU added value as well as capacity to finance new emerging needs. It’s true, the proposal has not yet addressed some of the challenges and uncertainties stemming from the unprecedented situation in Europe. Some of these elements will be reflected in the upcoming amending letter. Understand that one of the main justifications for the Council’s proposal is to make space for the upcoming amending letter. However, the proposed cut of the commitments by EUR 1.6 billion is neither justified nor respects the priorities expressed by the Council itself. In particular, heading one suffers disproportionate and excessive cuts. And I thought with the priority given to this heading by many Member States, this would also hinder the implementation of new flagship initiatives such as the European Chips Act and the Union Secure Connectivity programme. The very large cut, almost EUR 200 million for EU for health, would undermine our efforts to boost the Union’s preparedness and resilience to health related urgencies at a time when the coronavirus pandemic is still a reality. The Council has proposed a cut of EUR 45 million to the Programme for Environment and Climate Action, so-called ‘Life’, which is dedicated to the green transition. This hot summer showed us that we need to do more for the green transition, but not less. Under heading seven, the Council has rejected the proposal to use the flexibility instrument to offset the impact of high inflation and soaring energy prices on the administrative expenditure of the institutions. It has proposed instead a cut to the same amount for all institutions except Parliament. The high inflation has a direct effect on all institutions, and all institutions will need to make an effort. No institution should be penalised for high inflation, especially when respecting the principle of stable staffing and limited increase of non-salary expenditure. In this context, I would like to invite the Parliament to examine the elements in its statement of estimates and very carefully consider synergies with other institutions, especially as regards cybersecurity. Of course we continue to monitor the situation and will adjust downwards where possible if the most recent data allows. We also carefully considering the best way to support Ukraine. The proposed second tranche of macro financial assistance to provide additional EUR 5 billion to Ukraine this autumn does not require additional appropriations. Unfortunately, the war continues and the reconstruction process cannot start yet. But at this stage, I could only urge to be realistic about the scale and capacity of the EU budget. There is a clear need to coordinate this process with other international donors. We should bring the international community together to ensure that the financial support to the Ukrainians is provided in a coordinated manner. But we have to be clear: the focus must be to provide the necessary financial support to Ukraine, in particular for as long as they are in war. And unfortunately, I think it will not end this year. But we have to face the reality that this war will continue next year. So we have to find ways and means to cope with this demands and challenges and the necessary support to the Ukraine and the Ukrainian people. And of course, we have to continue with other support, including humanitarian aid. I hope that this state of play provides some clarity in times of uncertainty, even though in terms of amounts we are still in assessment mode. Following the Parliament’s reading, I will send you the usual executive ability letter, the Commission’s assessment of the amendments proposed both by the Council and the Parliament just before the start of the conciliation. For my side, I will do my best together with my team to facilitate the process and reach a successful outcome on all budgetary files and, hopefully, again in due time. Because in these troubled times, achieving a strong result in the conciliation will be a welcome sign of stability and certainty in the Union’s ability to act and the reassurance to our own citizens.