Brussels – “To arrive at an acceptable landing zone, the Commission’s proposal of nearly 2 trillion euros needs to be reduced by several hundred billion euros in a balanced manner.” Signed: Germany, Austria, Denmark, Finland, the Netherlands, and Sweden. In the midst of negotiations for the next seven-year budget (MFF 2028–2034), the member states known as the “frugal” countries—that is, those reluctant to spend public funds and, conversely, more inclined towards austerity—have produced a joint statement that effectively nips any negotiation in the bud.
The letter is peremptory in nature; it sends a clear signal to the European Parliament—which, on the other hand, has requested 200 billion more than the European Commission suggested—and pre-emptively rejects any requests for improvements or additions from other Member States and, above all, is a slap in the face for the President of the European Council, Antonio Costa, and his tour of European capitals recently launched to discuss precisely this multiannual budget. Costa’s “pilgrimage” through European chancelleries began on 25 August and is scheduled to conclude on 17 September. Barely two days in, and this task—as necessary as it is delicate—is being undermined by the united front of the six northern governments, who are dictating terms and thereby thwarting Costa’s efforts. On whose behalf, then, is the President of the European Council speaking? With what credibility? With what mandate?
Germany, Austria, Denmark, Finland, the Netherlands, and Sweden appear to be dictating the conditions. This group of countries not only categorically calls for a reduction in Member States’ contributions to the EU budget, but also specifies how: “All items of expenditure should contribute to these reductions.” Nothing is spared. Research, innovation, humanitarian aid, agriculture and even cohesion: everything means everything.
“The European Union must make clear choices and redefine its budgetary priorities, just as we do at national level,” insist the Frugal Four, who are only willing to invest where strictly necessary: “The Multiannual Financial Framework will be increased to address our strategic priorities” compared with what has been done so far. The core of the 2028–2034 MFF is “security and defence, competitiveness, migration and sovereignty,” argue the six countries, who maintain that “by approving the three main spending programmes, the Council has laid the foundations for an architecture suited to future challenges.”
The text also includes a clear and unambiguous reference to Eurobonds. It is placed at the end, so that there is no risk of “missing it” whilst reading: “New joint borrowing is not the solution to our budgetary challenges and is not an alternative to structural reforms.” Peremptory words and tone, which rule out any negotiation and, even more so, any room for dialogue. A slap in the face for Spain, France, and Italy. Speaking of Italy: for the Meloni government, which is due to stand for election in the year in which Italy’s public debt will become the highest in the entire EU, exceeding even that of Greece, this marks a political defeat that sees it cornered by its European partners, who are demanding the consolidation of public finances and credible measures.
