Multiannual Budget (Expenditures)
The cabinet estimates based on the proposal that the Netherlands will contribute more to the European budget compared to other countries. For the cabinet, this is unacceptable.
Minister Heinen: “Smarter and more effective instead of spending more, that should be the discussion now. This requires sharp choices, simplification, and modernization.”
In addition to the higher contribution, the cabinet is critical of the proposed new loan instruments. The cabinet is not in favor of common loans for a new crisis instrument and national investment plans. According to the cabinet, the EU can already borrow money in crisis situations through other instruments. Therefore, a separate crisis instrument is not necessary.
The next European budget offers, according to the cabinet, an opportunity to make the EU future-proof. The EU is of great importance for the prosperity and security of the Netherlands. Therefore, the cabinet is positive about the modernization and simplification of the proposed budget by reducing the number of programs and rules, and focusing on the policy areas of competitiveness, migration and asylum policy, and security and defense. These are also strategic priorities for the Netherlands that align with the challenges of this time. Additionally, the cabinet is pleased with the proposed continuation of support for Ukraine.
Minister Van Weel: “Good that the proposed budget focuses on the major challenges in Europe. This also contributes to more security in the Netherlands, a stronger economy, and better control over migration.”
The cabinet supports the Commissions proposal that certain funds from the EU budget will only be disbursed if pre-established conditions, reforms, or performances are met, but believes this should not lead to extra administrative burdens for implementation. The same conditionality also applies, according to the cabinet, to the requirements set by EU countries regarding the rule of law and compliance with fundamental rights.
Own Resources Decision (Revenue)
The cabinet looks not only at the size of the budget but also at the financing of it. Maintaining the reduction of the Dutch contribution to the European budget is an important part of the approach. For the financing of the new MFF, the European Commission proposes five new own resources. The cabinet indicates that more information is needed for a complete assessment of these proposals. Regarding the own resource based on the turnover contribution, the cabinet is very critical. The cabinet is also not in favor of reducing the compensation for collecting customs duties as proposed by the Commission.
Follow-up
The EU member states, the European Commission, and the European Parliament will negotiate over the proposals from the European Commission in the coming two years. The new European budget and the own resources decision must come into effect by January 1, 2028.