Beja, Portugal, 1 February 2020 – During the meeting with heads of state and government of 17 Member States supporting the strong budget of the EU and the cohesion policy, Prime Minister Jüri Ratas emphasised that the next long-term budget must not shrink too abruptly, and that the budgets of the cohesion policy and the agricultural policy should not be decreased to an unreasonable extent. The prime minister also stated that the next seven-year budget must help the Member States to face new challenges and achieve the goal of climate neutrality faster.
According to Prime Minister Ratas, the budgets for the cohesion policy and the common agricultural policy have already been decreased excessively in previous proposals of the budget negotiations. These means give important aid to us as well as other Member States in facing numerous challenges, such as meeting climate goals, innovation, or ensuring sustainable growth,” Ratas said. “The cohesion policy has helped us to improve the lives of Estonian people through, for example, job creation, supporting entrepreneurship and research, developing the school network, healthcare, tourism, and water management infrastructure, as well as creating transport connections,” said Ratas.
Discussing Estonian priorities, Ratas said that the decrease in funds from the cohesion policy and the increase of self-financing must be smoother than suggested in previous proposals in spite of the rapid economic development of the country. The prime minister also highlighted the continued support for infrastructure projects and building connections, bringing Rail Baltica and the synchronisation of energy systems with Europe as examples. In addition, the prime minister considered it important to ensure fair competition conditions for Estonian farmers, for which the harmonisation of direct payments must be sped up.
According to Ratas, the cohesion policy and the common agricultural policy are the main means in the EU budget for supporting the investments required to achieve climate goals. “Achieving climate neutrality is our shared goal. We need to take it seriously and get to work. There are lot of big changes to be made, for which large-scale investments are needed, for example, in the energy and transportation sector, as well as in housing and industry,” said the prime minister.
In addition, the European Commission’s plan for the Just Transition Fund is crucial in supporting areas that are most affected, including Estonia, in their transition to climate neutrality. Ratas pointed out that the Just Transition Fund must not be funded from the budgets of the cohesion policy or the agricultural policy. “Decreasing the amounts of those policies would decrease the funds intended for climate investments. That is an undesirable outcome,” the prime minister said.
At the summit, the Member States adopted a joint declaration in which they stress the importance of the budgets of the cohesion policy and the agricultural policy in facing many crucial challenges. The countries also proposed to terminate all repayments from the start of the next budget period which involve a partial return of EU budget contributions to the wealthiest Member States.
In addition to Estonia, attendants included Bulgaria, Croatia, Cyprus, the Czech Republic, Greece, Hungary, Italy, Latvia, Lithuania, Malta, Poland, Portugal, Romania, Slovakia, Slovenia, and Spain. Johannes Hahn, EU Commissioner for Budget and Administration, and Elisa Ferreira, EU Commissioner for Cohesion and Reforms, also attended the summit.
Photos (Government Communication Unit): https://www.flickr.com/photos/stenbockimaja/albums/72157712926813042/with/49472903127/