Federal Vivaldi coalition rushes the European Own Resources Decision through parliament: Belgium pays 1 billion euros extra to the EU every year

This week, the European Own Resources Decision was approved in the House of Representatives. This was done in a room without a live stream and without complete transparency. N-VA MP Sander Loones expresses his dissatisfaction: “The purple-green Vivaldi coalition claims to think highly of European cooperation, but bury this important debate in undeserved secrecy.”

“It is nevertheless about fundamental questions: How are we going to finance the EU? What ideological choices are being made in this respect? How much more must Belgium contribute, and what do we get in return? Anyone wishing to strengthen support for the EU would do well to opt for an open and transparent debate. Another missed opportunity for purple-green,” Sander Loones says.

More, more, more

“With Britain’s departure, the European Union will decrease in size for the first time in its history,” notes N-VA MP Anneleen Van Bossuyt. “The EU’s budget should logically therefore also shrink, but the opposite is true. Instead of reforming and saving, Europe expects the remaining Member States, including Belgium, to contribute more, not less, in the future.”

The total expenditure limit of Europe’s long-term budget will rise to EUR 1,074 billion. The Own Resources ceiling indicates the maximum amount that can be collected from the Member States. It was established that annual payment appropriations would increase to a maximum of 1.40% of the Gross National Income (GNI) of all Member States. The ceiling for annual commitment appropriations is raised to as much as 1.46%.

Sander Loones: “What at first glance seem small percentages actually involves huge amounts of money. In 2019, Belgium paid some EUR 3.3 billion to the EU. In 2021, that increases to EUR 4.3 billion. Belgium will therefore contribute an additional EUR 1 billion to the EU every year. Tax money that is paid here but can no longer be spent directly by us. From now on, Europe will decide how these funds are used. And this is while the needs in our own country are gigantic: the coronavirus pandemic, the structural budget deficit, the ageing population, etc. How will the purple-green government pay for all this? With even more taxes?”

Poorly negotiated

To justify the additional European contribution, the De Croo government refers to rising customs revenues, the NextGeneration EU recovery fund and the Brexit fund. “A smokescreen,” Anneleen Van Bossuyt calls it. “Yes, we will be able to retain 25% of the customs duties collected. The yield thus rises from EUR 500 to 625 million, about an extra EUR 125 million, for which we first have to pay EUR 1 billion, however. Totally unbalanced.”

The distribution of the European recovery funds also shows that the Belgian government negotiated badly. “Once again, it seems that Southern and Eastern European Member States in particular are excused from contributing,” Sander Loones notes. “Belgium scores well below the European average because the wrong parameters are used. One would expect that more coronavirus aid would go to the Member States more affected by the COVID-19 crisis. That is not the case. The result? Belgium is guaranteeing EUR 17.5 billion in recovery aid but is only getting EUR 5.9 billion back. If you look at the economic damage and the negative impact on the gross domestic product, we would be entitled to EUR 14 billion.”

To summarise: Belgium has to contribute a lot more but will not get its fair share back. By spending more European money, we will not achieve the needed post-coronavirus recovery.