Debate: General budget of the European Union for the financial year  - all sections
Date: TUESDAY, 18 OCTOBER 2022
Speaker: Johannes Hahn
Language: EN

It has become a habit for me to say that the negotiations on the annual draft budget take place in a context of multiple crises. First, COVID-19, now the unprovoked and unjustified Russian war against Ukraine and its consequences for the Ukrainian people, as well as its consequences in Europe and around the world. In such times, it is more than ever important to put aside our differences and to work together on reaching our shared goals and priorities.  I would like to thank the European Parliament, especially the Committee on Budgets and all specialist committees for the intensive work on the Commission’s proposal for the draft budget 2023. This resulted in more than 1200 proposed amendments. Therefore, I really congratulate two rapporteurs, Mr Ștefănuță and Mr Herbst for reaching wide support among political groups.  First, I appreciate that the amendments proposed by Parliament to reinstate the expenditure at the level proposed by the Commission in the draft budget.  Second, Parliament proposes more money for a number of programmes for 2023. This includes research and innovation, energy independence and the twin transition. It covers boosting competitiveness, including Parliament’s support for the future flagship programmes and employment opportunities, crisis response and health supporting our shared priorities.  Both the European Parliament and the Council have now set the framework of their respective negotiating mandates. As usual at this point, the positions of Parliament and the Council diverge substantially. But I can only reiterate my regret about the significant cuts proposed by the Council. They do not follow the Council’s own priorities, but at the same time Parliament requests substantially increases; this would require extensive mobilisation of special instruments thereby going significantly beyond the Commission’s proposal. We are not even halfway through the long-term budget. With the developments in the first two years, it has become clear that we must manage our resources carefully and preserve flexibility to be able to respond to unforeseen challenges.  Unfortunately, given the limited availabilities, we will have to face some tough choices between what we would like to do and what we finally can do. On the one side, we have a moral obligation towards our neighbours in Ukraine. We must also meet the expectations of our citizens to respond to geopolitical and economic challenges at Union level. On the other side, we have to use the available resources in the most efficient way to meet the most urgent needs. Today’s debate and the exchange of views should increase mutual understanding and facilitate, as always, a common approach.  So I am confident that the negotiations will continue in the positive spirit we had until now, and that Parliament and the Council will manage to reconcile their positions. Inevitably, a clear prioritisation of tabled amendments, as well as concessions from both sides, will be necessary.  As regards the next steps, we already presented the amending letter in last week’s dialogue. The amending letter addresses some elements included both in the Council’s position and in Parliament’s amendments. Therefore, I would like to ask the Parliament and the Council to consider this amending letter as a starting point in the negotiating process.  A timely agreement on a solid EU budget is the best way to stimulate economic recovery. Support our society, respond to the expectations of our citizens and, last but not least, respond to the consequences of the Russian war against Ukraine and, finally, another important and stronger assurance to our citizens that we are able to take decisions in due time.