Following a two-day conference on how to better finance the EU, the S&D Group has reiterated its support for reforming how the EU budget is funded with less coming from national budgets and more genuine own resources raised directly by the EU itself. The Group looks forward to the proposals in December from the high-level group on (EU) own resources and urges the Council to stop blocking any attempts at reform.

Isabelle Thomas, vice-president of the S&D Group, said:

“We need to find a better way to fund the EU budget. Under the current model the vast majority, 80-85%, of funding comes from directly from member states’ national budgets. This leads to an annual fight with each country over trying to reduce their contribution, while also asking the EU to do more on investment, migration, security, youth unemployment, competitiveness with the resources it has. This is not a sustainable way of running a major international economy.

“Despite the obvious short comings of the current model, the Council has repeatedly blocked attempts to change it. We cannot allow this to continue. The Council must take the proposals from the high-level group on (EU) own resources seriously when they are put forward in December. We want these to be in line with the existing goals of the Parliament such as combating tax evasion/tax avoidance, reducing the dangers of financial speculation, or addressing environmental issues.

“Raising funds through these new measures would benefit everyone as it would allow more consistent revenue streams for the EU and would reduce the amount member states would need to contribute. In particular a financial transaction tax or tax on multinational corporations would allow us to raise more money while also helping curb dangerous financial practices that are eroding citizens’ trust in Europe.”