EU Budget Must Focus on Competitiveness, Curb Excessive Spending

Péter Benő Banai, Secretary of State for Public Finance, emphasized the importance of competitiveness in the EU’s 2025 budget during the Economic and Financial Affairs Council (ECOFIN) meeting in Brussels. The Secretary of State highlighted Hun

By: hungarytoday.hu

Nov 15 2024
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EU Budget Must Focus on Compet

The Secretary of State highlighted Hungary’s stance that additional resources should be directed towards programs that stimulate investment and boost competitiveness to drive European economic growth.

Mr. Banai explained that the ongoing negotiations aim to secure funding for initiatives already approved by EU leaders and the European Parliament, while ensuring these measures do not place excessive financial burdens on member states.

Péter Benő Banai, Secretary of State for Public Finance at the Ministry of Finance, speaks ahead of the Economic and Financial Affairs Council. Photo: MTI/Bodnár Boglárka

He cautioned that excessive spending could lead to increased costs for European citizens, potentially in the form of higher taxes.

A significant concern raised by the politician is the higher-than-anticipated interest expenditure on EU borrowing, exceeding the European Commission’s original 2025 projections. This discrepancy, amounting to approximately EUR 2.3-2.4 B, poses a major challenge for the budgetary process.

Péter Benő Banai outlined potential solutions, including reallocating resources from other programs or requiring additional contributions from member states to cover these costs. However, he stressed the importance of balancing the need for funding with the imperative of minimizing financial strain on citizens and states.

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