The European Commission has proposed that Portugal receive 7.4 billion euros for the Common Agricultural Policy (CAP) and 142.5 million euros for fisheries as part of the long-term budget from 2028 to 2034. This proposal, shared with Lusa agency, outlines the minimum allocations for these policies under the next Multiannual Financial Framework (MFF). The total suggested allocation for Portugal amounts to 7.4 billion euros for CAP and 143 million euros for fisheries, contributing to the overall 300 billion euros and two billion euros planned for the EU.
In July, the European Commission introduced a new long-term EU budget of two trillion euros for the period of 2028-2034, an increase from the current 1.2 trillion euros framework, which will involve more national contributions and the introduction of three new taxes. The Commission proposed that Portugal’s new budget allocation reaches 33.5 billion euros, which will encompass funds for cohesion and agriculture under the national and regional partnership plan until 2034, although specific cohesion fund amounts remain unspecified.
This proposal aligns with the 865 billion euros allocated for investments and reforms across the 27 EU member states, as part of the new partnership plans that will depend on achieving defined objectives. Finance Minister Joaquim Miranda Sarmento remarked to Lusa that negotiations are still at an early stage. He noted several aspects of the European Commission’s proposal that Portugal opposes, particularly concerning increases in certain taxes, including tobacco, and expressed concerns about national plans.
Nevertheless, he expressed hopes for a favorable outcome for Portugal, underscoring the importance of maintaining the current significance of cohesion and agriculture in European funding. The government has communicated this position to Brussels, emphasizing CAP and cohesion’s critical roles while suggesting common debt solutions.
The existing long-term EU budget (2021-2027) stands at 1.21 trillion euros at current prices, of which approximately 800 billion euros is for the Recovery and Resilience Mechanism, equating to a national contribution of 1.1%. This translates to roughly one billion euros allocated to the EU for the 2021-2027 period and nearly 33 billion euros for Portugal.
According to Brussels’ data, the new proposed MFF allocates a total of 33.5 billion euros to Portugal (at current prices), including 31.6 billion euros as a general allocation, 900 million euros earmarked for migration, security, and internal affairs, and another 900 million euros for social and climate initiatives. These funds will support various policies, including cohesion, social policy, CAP, maritime and fisheries policy, migration, border management, and internal security, with execution in close partnership among the European Commission, member states, regions, local communities, and other stakeholders.
In total, the EU budget includes an authorization envelope of two trillion euros (at current prices), with national contributions calculated at 1.26% of gross national income. Additionally, new revenue sources are set to include a tax on tobacco consumption, a corporate resource for Europe, and taxes on electronic waste and e-commerce, alongside existing taxes related to carbon product imports and emissions purchases.
Leave a Reply