Portugal rejects ‘begging contest’ in EU budget talks

Portugal does not see negotiations on the European Union’s next long-term budget as a “begging contest”, Prime Minister Luís Montenegro said on Tuesday, arguing that the debate matters for the bloc’s economic model, competitiveness and solidarity among member states. Speaking at the European Parliament in Strasbourg, Montenegro said talks on the 2028-2034 Multiannual Financial Framework should be held “without dogmas and without taboos”.

Montenegro said Portugal views the budget as a chance to deepen “a social and economic project” built on the single market, innovation and solidarity across member states and regions. He also argued that Portugal’s contribution to the EU budget, measured against the size of its economy, is higher than that of the so-called frugal countries, including Germany, Austria, Denmark, the Netherlands, Finland and Sweden.

The Portuguese prime minister backed a modernisation of the EU budget and called for “more revenues”, while criticising the rebate system that gives budget corrections to some large net contributors. “We cannot accept the continuation of mechanisms designed for other times and other realities,” he said, questioning the logic of keeping rebates while the EU looks for new own resources.

Montenegro also said the next budget should include tools to reduce vulnerabilities before crises hit, arguing that European solidarity should not be activated only in emergencies. He pointed to a proposed European agricultural reinsurance mechanism, led by Portugal and supported by countries including France, to protect EU farmers against extreme climate disasters.

Before the speech, Montenegro told reporters he was concerned about the negotiations and said Portugal would be firm in defending what is set out in the treaties on cohesion policy, the Common Agricultural Policy and support for outermost regions. The European Commission’s proposal for the 2028-2034 budget amounts to nearly €2 trillion at current prices, or 1.26% of EU gross national income, and still requires unanimous backing from member states and the consent of the European Parliament.

Originally published at Eco.pt