Ministerial Committee on European Union Affairs outlined Finland’s positions on the mid-term review of the EU’s multiannual financial framework for 2021–2027
On Friday 7 July, the Ministerial Committee on European Union Affairs outlined its positions on the mid-term review of the EU's multiannual financial framework, the reform of the EU fiscal policy framework and the development of the bank crisis management and deposit insurance (CMDI) framework.
On 20 June 2023, the European Commission published its proposal for the mid-term review and revision of the EU’s multiannual financial framework. The Commission proposes additional funding to support Ukraine, to control migration both internally and externally, and to manage the increased debt servicing costs. In addition, the Commission proposes the Strategic Technologies for Europe Platform (STEP) to support strategic investments.
From Finland's point of view, it is essential that the overall level of the financial framework remain reasonable even after the mid-term review and that an increase in Finland's net contribution can be avoided. In addition, Finland considers that the need for additional funding should primarily be met through reallocations within the financial framework.
Finland is strongly committed to supporting Ukraine and its reconstruction and is open to various funding solutions to achieve this goal. Finland supports the allocation of financial assistance to Ukraine as part of the mid-term review of the financial framework.
Finland will formulate its final position on the proposal for the mid-term review of the financial framework at a later stage of the negotiations based on Finland's overall interests. A decision on the mid-term review will be made unanimously at a meeting of the European Council.
On 26 April 2023, the Commission published its proposal for legislative amendments to reform the regulatory framework for the EU fiscal policy. According to the Commission, the aim of the reforms is to strengthen the Member States’ debt sustainability. The objective is also to encourage sustainable and inclusive economic growth through reforms and investments. The Government will publish its positions after its plenary session.
On 18 April 2023, the Commission tabled a package of legislative proposals to amend the bank crisis management and deposit insurance (CMDI) framework. According to the proposals, the problems of the banks in distress would increasingly be resolved through crisis management proceedings instead of national insolvency proceedings. The proposals would expand the use of national deposit guarantee funds in different ways and change the ranking of claims of the banks’ creditors in certain respects. The Government’s positions will be published after its plenary session.
The Ministerial Committee on EU Affairs also outlined Finland's positions for the following Councils:
• General Affairs Council 10 July
• Economic and Financial Affairs Council (Ecofin) 14 July and Eurogroup 13 July
The General Affairs Council will hold the first policy debate on the mid-term review of the EU's Multiannual Financial Framework. It will also receive an overview of Spain’s priorities for its Presidency of the Council of the EU.
The main themes of the Ecofin Council will be the Ukraine Facility and its funding. The Council will also hold a policy debate on proposals for amending the fiscal policy rules. The Eurogroup will discuss the euro area fiscal stance and exchange views on the international role of the euro. The inclusive format of the Eurogroup will discuss the future of the capital and financial markets and the digital euro.
Inquiries: Tuomas Tikkanen, Special Adviser (EU Affairs), tel. +358 40 523 5768, Jari Luoto, Director General, EU Affairs Department, tel. +258 50 468 5949, Prime Minister’s Office