Recovery Live right now: MEPs discuss EU recovery package in broadcast debate

Parliament will debate the borrowing of the EU recovery package on Wednesday at 2 p.m.

Deputies at their session on Wednesday, they will tackle one of the big themes of the spring: the European Union’s major recovery package.

Parliament will hold a referendum debate on the government’s proposal for the so-called own resources decision. The own resources decision concerns the EU’s budgetary reserve for the next seven years and is taken every seven years. The decision defines, among other things, Finland’s membership fees for the 2021–2027 budget period.

This time, the own resources decision will also be accompanied by a EUR 750 billion recovery package, as the Commission intends to borrow money from the market against the budget reserve. The loan will be taken out through the EUR 670 billion Recovery and Recovery Facility.

The own resources decision also deals with Finland’s maximum payments from the recovery package.

The decision on own resources must be considered and approved in each EU country in order for the recovery package to emerge. To date, six countries have adopted the decision. For the EU, the final stage was reached on Wednesday, when the European Parliament voted in favor of the Recovery and Recovery Instrument.

The opposition has severely criticized the recovery package. Basic Finns tabled an interlocutory question on Wednesday in connection with. The intermediate issue is the strongest weapon the opposition can use to try to overthrow the government.

Parliament has dealt extensively with the recovery instrument in the past. It first took a position on the matter before the actual negotiations. It has also, inter alia, considered the own resources decision in advance in advance.

The position of the Committee on Constitutional Affairs will be of particular interest in the forthcoming reading. The committee is very critical at first, but relaxed its interpretation after the clarification of EU law. However, the committee has not issued its final opinion, which is expected in March or April. The actual report will be issued by the Committee on Finance.

If the Committee on Constitutional Affairs were to interpret that participation in emergency funding means a significant transfer of competences to the EU from the point of view of Finland’s sovereignty, the package would have to be approved in the Great Hall by a two-thirds majority.

Of the package, EUR 390 billion will be provided in the form of grants and EUR 360 billion in the form of loans. The recovery package will be repaid over 30 years by 2058. Grants are paid in the form of higher membership fees and the EU’s own income, including plastic fees. EU-wide forms of taxation have also been discussed in the EU.

Also read: Hundreds of billions of EU recovery package before MEPs – That is what this is about

In the future In the seven-year budget period, Finland’s membership fees will increase from EUR 16 billion to approximately EUR 16.7 billion at constant prices. Finland, which is one of the EU’s net contributors, therefore pays about EUR 100 million more a year than in the previous seven-year period.

The Treasury minister Matti Vanhanen (middle) has justified in the past, the increase in fees was the result of Britain’s EU gap. According to Vanhanen, Finland’s growth in payments of about four per cent is still small compared to the average increase in payments in the EU countries of about ten per cent.

Finland’s share of the EU recovery package will not be known until the summer of 2022, and the amount will be affected by economic development. The package takes into account how much the coronavirus vaccinates the economic growth of each country.

According to the Commission’s preliminary estimate, Finland should receive EUR 3.2 billion in grants, but a recent estimate would be half a billion euros less. Finland’s estimated contribution to the recovery package has remained unchanged at around EUR 6.6 billion.

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