The EU's 2028-2034 budget proposal, presented on Wednesday by the European Commision, has been given a mixed review by Walloon Minister-President Adrien Dolimont.
In an initial assessment on Thursday, Dolimont deemed the CAP budget reduction "unacceptable," expressed concerns on cohesion policy, but saw positives in defence and competitiveness.
Commission President Ursula Von der Leyen proposed the post-2027 multi-annual budget of nearly €2 trillion on Wednesday. Member States will discuss the Commission's draft over the next two years and try to reach an agreement, which will also have to be approved by the European Parliament.
CAP budget reduction 'unacceptable' - Dolimont
The item that has provoked the most reaction is agriculture. By proposing €300 billion in income support for farmers and crisis management, the Commission is setting the "protected budget" at 80% of the current budget for the Common Agricultural Policy (CAP).
It is giving Member States the opportunity to supplement this by drawing on other funds via a future ‘national and regional partnership plan,’ worth €865 billion.
‘The 20% reduction in the CAP budget in current prices, as proposed by the Commission, is unacceptable,’ said Adrien Dolimont, speaking through his spokesperson.
"This reduction will be even more pronounced for Belgium, due to the unfavourable parameters of the distribution key," noted the Walloon Minister-President, who is also in charge of Budget and European Relations.
"At a time when the EU is setting particularly ambitious goals in terms of the environment, climate and strategic autonomy, it is crucial that the CAP remain one of the major pillars of the European budget," he emphasised.
Cohesion policy is another area of concern
Cohesion policy, another major traditional EU budget line designed to help less favoured regions of Europe catch up socio-economically, is also a concern for the head of the Walloon government.
"Initial information confirms the risk of a reduction in the budget allocated to cohesion policy, which will be all the more significant if all regions, and in particular Wallonia – which is not considered to be a region lagging behind in development – can no longer benefit fully from it," Dolimont noted.
Wallonia also fears the loss of direct dialogue with the European Commission, given the nationalisation of partnership plans and the centralisation of exchanges.
"The experience of the recovery plan has already highlighted many difficulties associated with this model," Dolimont said. "Today, we have weekly contacts with the Cohesion Policy Commission. It is difficult to imagine that, in the future, all of this dialogue will necessarily have to go through the SPF BOSA [Federal Public Service for Policy and Support]."
Thumbs up on defence, strategic autonomy, competitiveness
"Wallonia insists on avoiding a disguised recentralisation through partnership plans," he added. "The design allows for sufficient flexibility, but the effectiveness of regional autonomy will depend on effective implementation."
Sources of satisfaction for the Walloon Minister President can be found in the planned investments in defence and strategic autonomy. "We are enthusiastic, but the European budget must not be too focused on this sector to the detriment of regional policies," he cautioned.
As for competitiveness, he considers "the focus on future technologies, innovation and administrative simplification to be perfectly appropriate."
To support the EU's budget, the Commission has also proposed new sources of revenue ("own resources"). The head of the Walloon government notes that this refocuses the EU's financing efforts on resources linked to ecological transition, energy efficiency and behavioural or inter-company taxation.
Wallonia wary of potential ETS2 expansion in the medium term
The Commission has decided not to collect resources from the new Emissions Trading System (ETS2) carbon market, which will increase the cost of energy for buildings and transport and is causing some controversy. "While no immediate extension to ETS2 is planned, Wallonia remains particularly vigilant for any signs of potential expansion in the medium term," Dolimont warned.
In his view, there is also a significant risk of a reduction of the regional room for manoeuvre, particularly with regard to the ETS and 'green' taxation, which will need to be offset either by appropriate European allocations or returns, or by a fair sharing of the effort at the national level.
"In this context, Wallonia will need to have accurate and up-to-date figures in order to adjust its transition policies and better defend its interests in intra-Belgian negotiations," the Walloon Prime Minister noted.
