The European Commission’s proposals for the next budgetary period from 2014 to 2020 are ambitious and realistic but it was crucial for decision-makers to be “sensitive to the difficulties that our citizens are facing in their everyday lives”, Stefano Mallia told an EESC plenary session last week.
Mr Mallia, a member of the European Economic and Social Committee and deputy president of the Malta Chamber of Commerce, Enterprise and Industry, was asked to intervene on behalf of the employers group (group 1) during the session.
Guest speaker Commissioner Janusz Lewandoski, responsible for the EU budget, presented the Commission’s proposals for the next budgetary period. He highlighted the main features of the new proposals – the creation of two new own resources which would provide the EU with its own revenue, a new structure for Cohesion policy with the creation of a new ‘intermediary region’ which will include all regions with a GDP per capita between 75 per cent and 90 per cent of the EU-27 average, and other aspects concerning the Common Agricultural Policy, SME Policy and Research and Innovation.
Addressing Commissioner Lewandowski, Mr Mallia praised the proposals but added: “In saying this, we must of course be sensitive to the difficulties that our citizens are facing in their everyday lives. It is however exactly for this reason that the EU must present an ambitious budget that will allow it to make a difference to its citizens.”
Mr Mallia expressed disappointment that the proposals put forward by the Commission were criticised within hours by some member states.
“It is indeed disappointing to note that that within hours of being launched these proposals were immediately shot down by some member states. I would have expected a more studied and rational approach,” he said.
Mr Mallia praised the proposal to introduce a “connecting Europe facility” which would be aimed at investing in pan-European infrastructure creating better connections between member states. This investment would be assisted through the creation of EU investment bonds.
Commenting on these bonds, Commissioner Lewandowski said that “now is the time to test the market for these bonds which if successful could provide us with an important source of finance”.
On the new concept of ‘intermediary regions’, Mr Mallia said this was a rational proposal as it would be ‘illogical’ to drastically reduce funding for regions which have exceeded the 75 per cent of GDP threshold but are currently going through serious financial difficulties.
He expressed some reservation about the ‘conditionality concept’ that is being tied to the funding being provided.
“I understand that there is a need to target funding. However we must also recognise that different regions and member states have different investment needs and therefore we must allow enough flexibility for the member states to use this funding where they need most.”
Mr Mallia wished the Commissioner well in view of the tough negotiations that will now take place over the coming months with all the EU27, saying: “‘I trust and hope that the end result will not be too far from what you are currently proposing.”