As the EU election day approaches on Sunday, defense, Ukraine, green transition and investments have emerged as key themes. However, all these topics share a common thread – the need for money. Prime Minister Petteri Orpo has emphasized the need for additional funds but opposes new funds financed by joint debt. This raises an important question – where could the extra funds come from?
One suggestion put forth by Katri Kulmuni is to increase EU membership fees moderately. However, this may not be feasible as the EU’s annual budget is already allocated to various sectors such as agricultural subsidies, regional subsidies, competitiveness, research and development support. Therefore, finding extra funds within the existing budget is challenging.
The Finnish Confederation of Business and Industry has proposed a fund of up to 500 billion for digital, green and defense projects. While this may seem like a significant amount of money, it may not be enough to address the investment needs required to combat climate change which are estimated to be around 500 billion every year.
Another alternative that has found support is expanding the EU’s right to tax but options available are limited. Joint debt has been accepted in certain circumstances such as in support packages for Ukraine. Ultimately, addressing the pressing issues at hand requires finding a solution that will generate enough money while being feasible and sustainable in the long run.
