A year after the start of the Russian war in
Ukraine and the announcement of the $369 billion Inflation Reduction
Act by the United States, Europe no longer has the luxury of waiting to
ensure its technological, ecological, and military sovereignty, in an
increasingly competitive and unstable world.
Renew welcomes the new aid package for Ukraine and the proposals
for greater budgetary flexibility and the resources released to honour the
debt. However, there are shortcomings and room for improvement.
European Sovereignty Fund: a great deal of effort with little
Renew has been working for over a year to create a European
Sovereignty Fund to address Europe's critical dependencies: energy,
semiconductors, medicines, raw and rare materials, chemicals, defence, and
space. Despite the ambitions stated by President Ursula von der Leyen in
September 2022, the Commission is reducing our sovereignty efforts
to clean tech, deep tech, and biotech. It is also stripping
this tool of all symbolic significance. Neither a Fund nor a reference to
sovereignty, the Commission has chosen a facility: mainly a mere advertising
effect on a silver platform.
To increase our strength and face critical shortages and
dependencies, Renew Europe stresses the need to mobilise the money already
available but not used - for example from the cohesion policy or the recovery
plan. No available
money should be wasted. Every euro is useful. However, the
Innovation Fund, Horizon Europe, European Defence Fund and InvestEU already
allow these investments. Reinforcing them with 10 billion in fresh money is a
minimum starting point given the high investment wall in front of us. So, this "Strategic Technology Platform
for Europe" is sorely lacking in impetus. As a result,
the Net-Zero Industry Act runs the risk of being nothing more than an
At a time when many governments are announcing massive amounts
of State aid, Renew Europe wonders whether the real problem for them is
investing in Europeans rather than constraints linked to national public
finances. Our group warns against the potential fragmentation of the
internal market if the European budgetary solution is not equipped with more
Indexation of senior civil servants vs. Vision and protection of
Our group recalls that the purpose of the MFF revision is to
update the budget in light of developments in Europe since its adoption in
2020. It is why Renew is particularly surprised at the low attention on
investment in defence albeit
the war is still raging in Ukraine, while the Commission focuses more on the
budget for its administration.
Our group will therefore mobilise to ensure a strategic vision to
this budget to favour necessary expenditures between now and 2027.
While recognising the need for experts to implement the Green Deal and our
other ambitious public policies, Renew calls on the institutions to optimise
their resources to achieve greater efficiency.
Only new own resources will enable us to square the circle. It
is why our group welcomes the Commission's proposed revenue update. The Member States must adopt the
revenues linked to the Carbon Border Adjustment Mechanism and the ETS carbon
market as quickly as possible. There can be no further delay
now that everything is ready on the legislative side. Pro-Europeans are
impatiently awaiting a Europe that ensures fiscal and social justice without
putting the burden of repaying the recovery plan on their shoulders.
(Renaissance, France), Renew Europe group spokesperson on budgetary affairs and
member of the Parliament's negotiating team on the 2021-2027 budget, said:
"We can no longer conceive
tomorrow's Europe as if nothing had happened since 2021. Our sovereignty and
security are as much under pressure as our national budgets. Only by making
intelligent use of our resources and introducing new revenue will we be able to
give a new breath to Europe to tackle the threats it faces".