Last Updated on Tuesday, 6 December, 2022 at 11:18 am by Andre Camilleri
In his reaction to a plenary debate on a European Parliament report on the system of own resources of the Union, former Prime Minister Alfred Sant concurred with the exploratory approach of the report, its non-binding character and the real priority to ensure that the European Union can self-finance its activities under closely defined parameters.
The “Own Resources Decision” (ORD) is the legal basis that provides for part of the revenue sources that feed into European budget and for authorising funds to be borrowed on the financial markets to finance the Next Generation European Union Recovery Instrument (NGEU). On 1st June 2021, the decision that reforms the financing system of the Union budget entered into force, following its ratification by all Member States.
Labour MEP Alfred Sant stressed that the European Parliament report on the system of own resources ignores the need for peripheral economies to attract foreign investment by differentiating their tax structures from those of the central, highly advanced European economies.
While noting that the European Union is facing increasing budgetary needs to counter a series of emergencies related to the COVID pandemic as well as the Russian invasion of Ukraine, Sant warned that the looming financial requirements of the Green Deal are being underestimated.
He agreed that the European budgetary response to these emerging demands should not be financed solely through the borrowing of money and that a new budgetary input that taps new resources is required. The European Parliament does well to search for new venues resources, but they should come from action earmarked to counter environmental challenges, he suggested.
The report was adopted with 440 votes in favour, 117 against and 77 abstentions.