Brussels: EU Commission President Ursula von der Leyen has highlighted the need for a more adaptable EU budget in response to increasing geopolitical and trade tensions. Speaking at the Annual EU Budget Conference in Brussels, von der Leyen remarked, "Today, geopolitical tensions rise. Trade rules are being re-written. Extreme weather events are more and more frequent due to climate change. And the change in technologies is faster than ever. The 'new normal' is anything but normal." She stressed the importance of having a budget that is flexible, agile, and responsive to these evolving challenges.
According to Anadolu Agency, von der Leyen emphasized that the current budget, designed in 2019 and 2020, is outdated for the challenges of today's world. She explained that the budget is not merely a collection of funds and rules but a crucial component that directly affects the lives and livelihoods of EU citizens. Over the past five years, the EU has repeatedly tested the budget's limits, particularly during emergencies, to redirect resources effectively.
Von der Leyen recounted the EU's efforts during the COVID-19 pandemic, where funds were pooled to support member states during lockdowns and economic downturns. Emergency resources were utilized to finance economic recovery and bolster energy security. She underscored the necessity of focusing on key issues and simplifying access to European funds, acknowledging the unique conditions and challenges of each region.
She announced that the next budget would prioritize Cohesion Policy and the Common Agricultural Policy, with an emphasis on creating national and regional partnerships for investments and reforms. The EU's long-term budget framework, known as the Multiannual Financial Framework, sets the annual expenditure ceilings for seven-year periods, aligning resources with the EU's policy priorities.
The current framework for the 2021-2027 budget, exceeding £1.2 trillion ($1.35 trillion), was established in 2020. Additionally, an £800 billion economic rescue package was devised to support member states during the COVID-19 crisis. The long-term EU budget is determined by the European Parliament's approval and the unanimous vote of the European Council's member states. Revenue from this budget is predominantly sourced from member states' contributions and is audited by the European Court of Auditors in Luxembourg.