The EU is looking for money for security and competitiveness. Opinions differ as to where this can be found. German Finance Minister Lindner has a clear opinion.
Federal Finance Minister Christian Lindner expects a “quite sporty debate” about possible new EU debts – but does not want to move on the issue himself. “Germany has a very clear position,” said the FDP politician on the sidelines of a meeting with his EU counterparts in Brussels. A communitization of risks, a communitization of liability and debt does not contribute to stability and “will therefore not be supported by Germany.”
For some time now, Brussels has been debating new forms of joint borrowing – for example for investments in security and defense or for greater competitiveness. In order to be able to protect the EU effectively against threats from countries such as China or Russia, the European Commission estimates that an additional 500 billion euros will be needed over the next decade.
France wants Eurobonds for defense
France, for example, had advocated joint debt, so-called Eurobonds, for defense spending. EU Economic Commissioner Paolo Gentiloni had also called for an instrument for investments, for example in energy or defense.
“I hope that we will concentrate on the essential things,” said Lindner, referring to the meeting. In his view, private capital must be mobilized and the funds already available used more effectively. Lindner questioned the functioning of the funding policy for structurally weak regions in Europe. He believes that a better approach can be found for the existing funds in the so-called cohesion and structural funds.
Cohesion funds for structural support
The so-called cohesion funds are one of the largest items in the EU’s common budget. They are intended to help economically weaker regions grow in order to balance out economic and social differences. In the EU’s multi-annual common budget for 2021 to 2027, cohesion spending accounts for more than a third: around 427 billion euros of the total budget of almost 1.1 trillion euros is earmarked for structural funding. In the budget from 2014 to 2020, it was around 409 billion. The EU Court of Auditors recently criticized in a report that the use of the funds is not adequately monitored.
Source: Stern
