MNI: German Turmoil Dashes EU's Joint-Funding Hopes -Officials
MNI (BRUSSELS) - The collapse of the German government scuppers any immediate prospect of major new joint European-Union funding initiatives to boost competitiveness and could even delay agreement on the EU’s 2028-34 long-term budget which the European Commission wants ready by next summer, EU officials told MNI.
Draft conclusions for this week’s EU summit in Budapest, drawn up before Germany’s ruling coalition collapsed when Chancellor Olaf Scholz fired Finance Minister Christian Lindner on Wednesday, had called called for a refocused EU long-term budget and undefined "new instruments" to help pay for massive investments to revitalise European competitiveness.
Now not only is Scholz unlikely to be able to provide support for this when he makes what is likely to be a late arrival in Budapest, but EU officials said his likely successor as Chancellor after probable elections in March, Christian Democrat leader Friedrich Merz, is unlikely to have the political clout to do so either, given what are likely to be big votes for the far right and left.
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In his invitation letter issued last night, EU President Charles Michel urged leaders to have a "genuine" exchange on the financing issue at the summit, where former Italian prime minister Mario Draghi will present his recently-concluded report on boosting Europe’s competitiveness on Friday. (See MNI: EU To Commit To Industrial Strategy - Draft Report)
"I would like us to have a genuine political exchange on how to finance our ambitions and what instruments we have at our disposal. I am confident that by leveraging our collective strength we can make significant progress that will lay the groundwork for the months ahead."
Michel tweeted last night that "extraordinary times demand extraordinary decisions", with one eye on Donald Trump's electoral victory, but many leaders are currently more focused on shoring up bilateral relations with the incoming U.S. head of state.