Today, the European Commission published its proposal for the next Multiannual Financial Framework (MFF), covering the period from 2028 to 2034. BusinessEurope Director General Markus J. Beyrer said:
“Europe is at a pivotal point. It is therefore crucial that the next EU budget boosts EU competitiveness and economic growth, and supports innovation. European business welcomes the proposed establishment of a European Competitiveness Fund worth 409 billion euros. We take note of the Commission’s efforts to achieve simplification by the consolidation of various programs into four strategic pillars, the emphasis on flexibility, and the inclusion of stakeholders in the Fund’s dedicated strategic board.
Moreover, a proposed larger Connecting Europe Facility worth more than 80 billion euros appears to share European industry's goals of enhancing multi-modal, cross-border transport and infrastructure connectivity. It also aims to facilitate further integration of the energy market and advance cross-border clean energy initiatives, supported by 5 times more resources.
It is positive to see a shift towards a performance-based approach for cohesion policy that links reforms and investments, within the framework of the proposed National and Regional Partnership Plans, with 1 trillion euros of the MFF. At the same time, we point out that it is important to keep regions at the heart of the process and to respect the role of social partners, while stressing the need for simplification of program access.
We also welcome the Commission’s proposal to maintain the European Social Fund as a standalone EU financial instrument to support employment, inclusion, skills development, and capacity-building of social partners. To better align the use of this Fund with labour market needs during the next programming period, we call for earmarking 15% of the funds available for skills development to incentivise employers’ investment in their workforce training.
Furthermore, we acknowledge that the funding proposals for research and innovation, distributed across the European Competitiveness Fund and the Framework Program 10, appear to be high in ambition but we call for more clarity around issues such as governance and a ring-fenced budget for collaborative research.
Finally, we welcome the reinforced resources for EU external action – including for enlargement – at 200 billion euros.
On the other hand, we are deeply concerned by the proposal to introduce new own resources, and notably one based on levies on companies’ net turnover (“CORE”). This measure will increase the tax burden on European companies and will further undermine the EU’s attractiveness as a destination for investment. At a time when the EU is already facing significant competitiveness challenges and comparatively high overall taxation, such an approach will create additional barriers to growth and is totally counterproductive.
We will examine and discuss all proposals in more detail and look forward to constructively engaging with all relevant stakeholders to resolve these crucial issues”.
