AKEL ON EU MULTIANNUAL FINANCIAL FRAMEWORK
Statement of Costas Christodoulides, Head of the International and European Affairs Department of the C.C. of AKEL, on the EU Multiannual Financial Framework years 2014-2020
The plenary of the European Parliament today approved the Multiannual Financial Framework (MFF) of the European Union for the years 2014-2020 which is its budget for the seven years from 2014 to 2020.
The agreement provides that the maximum expenditure for the 28 EU Member States amounts to 959.99 billion Euros, corresponding to 1.0 % of the EU’s Gross National Income (GNI). Consequently, the maximum total expenditure decreased by 3.5% in real terms, compared to the current MFF (2007-2013). It is the first time that the limit of the total costs of a MFF is reduced in comparison with the previous MFF, at a time when growth is more necessary than ever before.
The agreement reached has a great deal more very serious consequences, if it is perceived within the context of a deep capitalist crisis affecting workers, the young, small and middle businesses. It focuses on imposing austerity rather than promoting growth. It will potentially have disastrous consequences for the economic and social development of states.
With regards in general to the issue of social solidarity which the EU must show, its programs and budgeted amounts are still humiliating when one considers the magnitude of the problems. A characteristic example is the initiative “Youth Unemployment” with a budget of 6 billion Euros, which if someone were to divide this amount over 7 years and bearing in mind the 3.624,000 young unemployed Europeans in the Eurozone area (according to figures released by EUROSTAT December 2012) provided that this number remains stable over 7 years, corresponds to just 237 Euros to each young unemployed person, annually. This is a clear mockery of young scientists who are being forced to emigrate by the system. AKEL supports the young people and disagrees completely with this philosophy.
Equally worthy of notice is the reduction in the amount of the Solidarity Fund too by 50% from about 7 billion to 3.5 billion Euros. The European Globalisation Adjustment Fund (EGF), which aims to help workers laid off “as a result of the major structural changes in world trade” instead of increasing to geometric progression/sequence due to the ever growing problems, has been reduced by 70%! That is to say from about 3.5 billion to 1.05 billion Euros. This is a callous policy that must be radically revised.
We note with regret, that the MFF 2014-2020 focuses excessively on sectors relating to the competitiveness of businesses and companies – with the pressure to reduce labour costs, despite the socio – economic cohesion and solidarity among Member States. This policy with excessive emphasis on competitiveness is exactly the same socio- economic strategy pursued by the European Union over the last decade which has brought the current tragic results.
In our view, the final version of the 2014-2020 Budget is particularly deplorable since it is characterised by priorities against the people’s interests. It focuses one-sidedly on boosting the competitiveness of big businesses, on security and defence at a time of enormous social problems for the peoples.
For these reasons, today the Parliamentary Group of AKEL -Left- New Forces has decided to reject and vote against the seven-year EU budget in the plenary. The government must not paint a wonderful picture of the situation. The young people and the people should know the facts.
The EU structural funds follow the same philosophy with reduced costs and the vote on the funds will take place tomorrow.
