Where does the money for EU elections come from?

As the EU election day approaches this Sunday, the key election themes have been centered around defense, Ukraine, the green transition, and investments. One common thread among all these themes is the need for money. Prime Minister Petteri Orpo emphasized the need for more European money, but opposes new funds financed by joint debt. This raises the question of where the additional funds could come from.

One suggestion put forth by Katri Kulmuni, a candidate for the European elections, is to increase EU membership fees moderately. However, with the EU’s annual budget already allocated to various sectors such as agricultural subsidies, regional subsidies, competitiveness, research, and development support, finding extra funds within the existing budget is challenging. Additionally, increasing EU membership fees or cutting funds from major sectors like agriculture and research may not be feasible options.

The Finnish Confederation of Business and Industry has proposed a fund of up to 500 billion for digital, green, and defense projects, highlighting the scale of investment needed. Even with such a significant fund, it may not be enough to address the investment needs required to combat climate change, which are estimated to be around 500 billion every year.

One alternative that has found support is the expansion of the EU’s right to tax, but the options available to generate the necessary funds are limited. Joint debt, despite being opposed by some, has been accepted in certain circumstances, such as in support packages for Ukraine. Ultimately, the question remains: where will the money come from to address the pressing issues at hand?