The new EU budget is full of challenges. The Commission is looking for new sources of revenue.

The budget for the next seven-year perspective faces a number of challenges. Among them is the need to increase spending on defense and armaments, as well as to support the competitiveness of European companies. At the same time, new sources of revenue are necessary to meet growing needs in priority areas.

"On July 16, the European Commission will submit a draft of the new multiannual budget of the European Union for 2028-2034. This budget must answer questions about many priorities and needs facing Europe today. Cohesion policy and agricultural policy remain important policies, but new needs have emerged, new challenges requiring enormous financial resources, namely defense policy, as well as improving the competitiveness of the European economy, which means investments and improved innovation," Katarzyna Smyk, director of the European Commission Representation in Poland, told the Newseria agency.

The new priorities are accompanied by significant financial needs. As the expert emphasizes, however, member states are not interested in increasing their contributions to the EU budget. The European Commission is, however, considering the possibility of obtaining new sources of revenue. However, concrete proposals will have to wait until the new MFF draft is submitted.

"For example, there's discussion about introducing fees for mass-ordered parcels, which amount to nearly 5 billion parcels annually, meaning online purchases made by Europeans abroad. If their value is less than €150, they're not subject to customs duties at all. Therefore, customs duties on such parcels would generate direct revenue for the European Union budget," explains Katarzyna Smyk.

The European Parliament recently supported the idea of abolishing the existing duty-free regime for goods valued under €150. This is part of a broader reform of the EU Customs Code. The European Commission estimates that up to 65% of parcels entering the EU may be deliberately undervalued.

The EU budget is expected to include funds to support the development of small and medium-sized enterprises (SMEs), as well as their investments. The expert emphasizes that competitiveness is a priority during the current term of the European Commission, so we can expect the new financial framework to reflect the needs of the SME sector, which comprises 99% of businesses in Europe and accounts for 90 million jobs.

"Of course, we won't know the details until we see the proposals. However, what we already know is that the new budget will create a Competitiveness Fund, whose purpose will be to meet financial needs arising from support for competitiveness, investment, and growth," explains the director of the European Commission Representation in Poland.

Another project aimed at increasing competitiveness and stimulating investment is the Savings and Investment Union. The European Commission's initiative, proposed in March of this year, aims to help redirect Europeans' savings towards investments, increase EU citizens' participation in capital markets by expanding investment opportunities and improving their financial literacy. It is therefore intended to both increase citizens' wealth and stimulate the economy, including the SME sector. The EC points out that currently, approximately 70% of household savings in the EU – worth €10 trillion – are held in bank deposits.

"The point is for this money to also work for the European economy. Startups that are created in Europe, and there are a lot of them, but once they reach a value of 1 million, they flee abroad, most often to the States. This must be reversed. And these are the solutions proposed by the Commission. We await discussions, debates, and negotiations, but these are our goals," emphasizes Katarzyna Smyk.

However, the European Commission emphasises that creating a savings and investment union will require cooperation between the Community institutions, the Member States and all key stakeholders.

"This project on the savings and capital union is designed for the needs of this term of office of the European Commission. We need the consent of all member states, and negotiations sometimes take a short time, sometimes a long time. This is where the issue of harmonization in financial supervision, for example, comes into play," the expert emphasizes. "For many countries, including Poland, this is a sensitive issue, and sensitive matters usually require more work and more discussion. But it seems very good that everyone understands these needs, everyone understands this challenge, and expects Europe and the Commission to act."

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