The EIB’s role and own resources for 5G: Pierrakakis sparks debate on the EU’s multiannual budget

Brussels – Setting aside the usual ways of thinking. For the challenging negotiations on the EU’s next multiannual financial framework (MFF 2028–2034), “we should try to shift the debate from a zero-sum game of spending to a positive-sum game,” by looking at new solutions such as involving the European Investment Bank (EIB) and investing properly in ultra-fast 5G and 6G networks. This is the suggestion put forward by the President of the Eurogroup, Kyriakos Pierrakakis, at the conference entitled “Boost Europe: Leveraging the EU budget for strategic priorities” organised by the European Commission. 

In essence, Pierrakakis is calling on the so-called “frugal” countries not to be so frugal. Those around the table—Austria, Denmark, Sweden, the Netherlands, and Germany—who are calling for a reduction in their contributions to the common budget and for spending as little as possible should therefore change their approach and mindset. “The issue—he explains during his speech—is not how to allocate existing scarce resources, or at least it should not be limited to that. The question is whether we can create an entirely new European capacity.” It is here that the European Union’s ability to revitalise itself is at stake. 

The key to successful negotiation is, and always will be, a change in mindset, and Pierrakakis wishes to emphasise this point: “We need to think a little more innovatively about what could unlock value at European level—value that would then translate into national value for all of us.” 

Pierrakakis is attempting to make an initial contribution in this regard, through changes relating to telecommunications and new technologies. “5G is a strategic asset, as is 6G,” states the President of the Eurogroup, for whom “while we prepare for the 6G allocations and, gradually, for the renewal of existing 5G licences, we have the opportunity to rethink how we manage one of Europe’s most valuable shared resources.” Here, Pierrakakis asks us to “imagine” being able to “synchronise the auctions and use the proceeds, or a large part of them, as own resources for the multiannual budget,” the Multiannual Financial Framework (MFF) for the period 2028–2034. 

In this scenario, the idea could be to “use 25 per cent” of the proceeds to “set up a dedicated fund” and allocate the remainder to the EIB “to create an even larger fund to invest in next-generation G6 applications.” According to Pierrakakis, “if we were to do this, we would be creating something broader than simply adding a new own resource to the multiannual budget.” Now it is up to the Member States.