Socialists in the European Parliament oppose the efforts of European Commission President Ursula von der Leyen not only to weaken the EU's green agenda, but also to cut the budget for training young people and the unemployed. According to Politico, the revolt is primarily about the EU's planned seven-year budget, known as the Multiannual Financial Framework (MFF).
Ursula von der Leyen, a member of the centre-right European People's Party (EPP), needs the support of the socialists within the centrist coalition to push through legislation in the European Parliament. However, signs that the centre-left is preparing for a tough budget fight are a warning to her.
A key point of contention is the European Social Fund, which amounts to €142.7 billion in the 2021-2027 budget and is designed to fight poverty and support disadvantaged groups. However, according to Politico, Von der Leyen is seeking to redirect these funds towards defence and industrial development.
"I do not understand how the EU budget could be without such an important fund as the European Social Fund," She told Iratxe García Pérez, President of the Socialists and Democrats Group in the European Parliament, during the last plenary session. She added that the Socialists will not blindly support the Commission's plans and that they consider the Social Fund to be an insurmountable threshold in the negotiations. In an interview with Politico, she stressed: "We need to adapt to new challenges, including competitiveness, but not at the cost of sacrificing the EU's social cohesion. Social spending also benefits farmers, industry and businesses."
The Socialists, the second largest group in the European Parliament, accuse the centre-right EU executive of pushing a pro-business budget and deregulation. Last week, the Socialists and Liberals threatened to abandon von der Leyen's informal pro-European majority after she controversially sided with the far right in repealing the anti-greenwashing law.
At the Commission's headquarters in the Berlaymont building, the Socialist Commissioner for Social Rights fights Roxana Mînzatu for the preservation of the European Social Fund. However, together with three other Socialists among the Commissioners, he is in a minority against 14 EPP Commissioners who want to redirect the EU's €1.2 trillion budget towards new priorities such as defence.
The Commission plans to merge dozens of funds into national and regional plans that would link payments to the completion of economic reforms. Supporters of this approach argue that it will simplify the system and make it easier for member states to draw down EU funds, but critics warn that it is a pretext for budget cuts and shifting funds away from priorities such as regional development or social cohesion.
"A key question in designing the new IFF structure is how can the Commission ensure that countries spend EU funds on the right policy priorities, which are not always the most attractive or visible?" a Commission official told Politico.
Mînzatu advocates a specific amount for the social fund in the new budget so that governments are obliged to actually use these funds for social policy. In the European Parliament, the EPP also supports the definition of specific budget amounts, but the centre-right faction is more interested in subsidies for farmers than in social programmes.
"We cannot allow farmers to compete for funds for highways, public transport upgrades or energy efficiency in buildings," said the deputy Siegfried Mureșan, the EPP's chief negotiator for the budget negotiations. He also added: "The Social Fund will be defended by the European Parliament."
According to Politico, the budget negotiations are approaching a crucial moment, with the draft budget due to be presented on 16 July.
Politico/gnews.cz - GH
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