BRUSSELS: Spanish Prime Minister Pedro Sánchez has rejected the European Union’s proposed long-term budget as inadequate, arguing that the bloc must spend the equivalent of 2% of its net gross domestic product to meet its growing economic, climate and geopolitical challenges.
Speaking ahead of the European Council discussions in Brussels, Sánchez said the proposal under consideration, put at 1.02% of the EU’s net GDP in his remarks, fell well short of what Europe needed to finance its priorities.
“This is not acceptable for Spain,” he said of the proposed budget.
The Global Envoy’s Rohan Dua was present at EU Council’s two-day Oct 15-16 summit to report on the agenda in Brussels.
Sánchez said Spain was ready to negotiate with EU institutions and member states to reach a consensus but insisted that the debate must address both the overall size of the budget and how it would be financed.
The discussions concern the EU’s Multiannual Financial Framework (MFF), which sets the bloc’s long-term spending priorities. For Spain, the negotiations are an opportunity to determine whether Europe can maintain traditional funding programmes while finding additional resources for competitiveness, digital transformation and external challenges.
Sánchez said the reports by former Italian prime ministers Enrico Letta and Mario Draghi had highlighted the need for a more ambitious European response to the bloc’s economic and strategic challenges.
The current proposal from the Irish EU Council presidency, he argued, did not reflect those ambitions.
Spain open to new EU-level taxes
Sánchez said Spain was prepared to discuss new sources of revenue for the European Union, opening a broader debate about fiscal justice and how the bloc could fund its priorities.
He cited the possibility of new taxes at the European level, including levies on large energy companies.
Spain’s economic development means it expects to become a net contributor to the EU budget during the next financial cycle, Sánchez said, describing that prospect as a source of pride as well as responsibility.
The government nevertheless wants the next budget to preserve the Common Agricultural Policy (CAP) and cohesion policies, which support farmers and help reduce economic disparities between European regions.
Spain is also calling for substantial investment in competitiveness, including digital autonomy, alongside greater resources for the EU’s foreign policy and external partnerships.
On development assistance, Sánchez opposed proposed reductions in funding for cooperation with Latin America and Africa. He argued that Europe needed resources not only for border control but also for cooperation with countries of origin to address migration pressures.
Lessons from the pandemic
Asked whether an agreement on the MFF by December was realistic, Sánchez acknowledged that budget negotiations were always difficult but said there was a common understanding that Europe needed more resources to confront new challenges.
He pointed to the EU’s response to the COVID-19 pandemic and the NextGenerationEU recovery programme as examples of the benefits of collective investment.
Spain, he said, demonstrated the potential gains from investing in common European priorities, citing economic growth of more than 2% and its contribution to employment creation across the bloc.
Sánchez also dismissed speculation about a possible change of government after Spain’s next election, saying: “I plan to continue in government.”
For Madrid, the central question is whether EU governments can agree on a larger budget and new sources of revenue while reconciling the competing demands of net contributors and countries that rely more heavily on European funding.
Sánchez said Spain was willing to negotiate, but made clear that the current proposal did not meet its expectations.
