EU lawmakers want bigger Europe budget to tackle crises
Representative Image (AI-generated)
The EU needs a bigger budget to spend more on defence in the face of the growing threat from Russia, European lawmakers demanded on Wednesday. Defence spending cannot come at the expense of nor lead to a reduction in long-term investment in the economic, social and territorial cohesion of the union," said a text approved by EU lawmakers during a plenary session in Strasbourg, France.The parliament's vote is a clear message to the European Commission as the EU's executive arm prepares a proposal for July on the next multiannual budget It will cover the period 2028-2034, setting spending limits on the bloc's priorities including support for farmers and subsidies to the poorest regions.EU lawmakers have called for "increased resources" and breaking with the usual limit that the budget is one percent of the 27 member states' gross national income.Russia's 2022 invasion of Ukraine and the need to ramp up defence spending against a more belligerent Russia has strained the EU budget It is also straddled with a loan of 800 billion euros ($909 billion) taken out after the Covid pandemic to revive the economy, which the EU will have to pay back by 2058.The bloc's focus on the green transition and building up its competitiveness will require massive investment at a time when weak economic growth in Europe is straining resources.Some states, like France and Italy, are already over-indebted.The two countries are pushing for Europe to take on more common debt to fund the bloc's priorities but it is a red line for frugal states, including Germany and Sweden -- major net contributors to the EU budget.On top of member states' contributions, the budget is funded by tariffs on imports and a portion of the VAT collected inside the bloc but in the future, more money could come from a carbon border tax -- which is being phased in gradually -- or via a possible digital services tax."Without fresh revenue, EU programmes will face cuts, or taxpayers will have to bear the burden," said Siegfried Muresan, a lawmaker for the conservative EPP, the largest political group in the parliament.The debate on the future budget framework will be heated. It must be adopted unanimously by EU states and given the green light by lawmakers before 2027 ends.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
First Post
40 minutes ago
- First Post
Israel-Iran Conflict Day 8 LIVE: Missile hits Beersheba tech park near Microsoft building
Israel-Iran conflict live updates: Iran has launched a fresh wave of attacks against Israel, with missiles targeting the southern city of Beersheba, where a hospital was struck yesterday. The air strikes reportedly hit a tech park in the city and fires were reported near a Microsoft office read more With neither country backing down, the foreign ministers of Britain, France and Germany, along with the European Union foreign policy chief, were due to meet in Geneva with Iran's foreign minister to try to de-escalate the conflict on Friday. "Now is the time to put a stop to the grave scenes in the Middle East and prevent a regional escalation that would benefit no one," said British Foreign Minister David Lammy ahead of their joint meeting with Abbas Araqchi, Iran's foreign minister. Israel and Iran's air war entered a second week on Friday and European officials sought to draw Tehran back to the negotiating table after President Donald Trump said any decision on potential US involvement would be made within two weeks. Iran has launched a fresh wave of attacks against Israel, with missiles targeting the southern city of Beersheba, where a hospital was struck yesterday. The air strikes reportedly hit a tech park in the city and fires were reported near a Microsoft office. Meanwhile, Israeli air attacks have killed 639 people in Iran, said the Human Rights Activists News Agency. Those killed include the military's top echelon and nuclear scientists. Israel has said at least two dozen Israeli civilians have died in Iranian missile attacks. Reuters could not independently verify the death toll from either side. British, German and French foreign ministers will meet their Iranian counterpart Abbas Argachi in Geneva for nuclear talks, in a first diplomatic sit-down between Europe and Iran as Trump weighs US involvement. Israel has targeted nuclear sites and missile capabilities, and sought to shatter the government of Supreme Leader Ayatollah Ali Khamenei, according to Western and regional officials. 'Are we targeting the downfall of the regime? That may be a result, but it's up to the Iranian people to rise for their freedom,' Israeli Prime Minister Benjamin Netanyahu said on Thursday. Russian President Vladimir Putin and Chinese President Xi Jinping both condemned Israel and agreed that de-escalation is needed, the Kremlin said on Thursday. The role of the United States remained uncertain. Lammy also met Trump's special envoy to the region, Steve Witkoff, on Thursday in Washington, and said they had discussed a possible deal. With inputs from Reuters
Mint
an hour ago
- Mint
China flexes chokehold on rare-earth magnets as exports plunge in May
China's exports of rare-earth magnets plummeted after it imposed controls on their overseas sale, emphasizing Beijing's dominance of a critical input into electric vehicles and jet fighters that has taken center stage in tensions with the U.S. Total export volumes of rare-earth magnets from China fell 74% in May from a year earlier, according to a Wall Street Journal analysis of Chinese customs data. That was the biggest percentage decline on record dating back to at least 2012. Exports had fallen 45% in April in year-over-year terms. The 1.2 million kilograms of rare-earth magnets exported in May marked the lowest level since February 2020, during the Covid pandemic. Exports of rare-earth magnets to the U.S. slowed to a trickle, declining 93% in May from a year earlier to roughly 46,000 kilograms. That followed a 59% year-over-year drop in April. The figures released Friday are the first to show the extent to which Beijing's curb on rare-earth magnets further choked off supplies to the world in May, which drew the ire of the Trump administration and brought the two countries back to the negotiation table earlier this month. Beijing on April 4 began requiring licenses for exports of certain rare-earth metals and related products. That included some magnets made with rare-earth metals such as dysprosium and terbium that are essential to making a range of goods. The controls restrict exports to all countries, not just the U.S., but came during one of the most heated periods of the U.S.-China trade conflict, with the two superpowers trading tit-for-tat tariff increases. China's move to restrict rare-earth magnets was felt acutely through the global automotive, electronics and defense industries. China has a near-monopoly on rare earths production. It mines around two-thirds of global rare-earth minerals and processes about 90% of the world's supply. A trade truce between the U.S. and China in Geneva in mid-May in which both sides agreed to reduce tariffs for 90 days was expected to ease the flow of these magnets. But rare-earth exports remained constrained, and U.S. automakers warned they could face production stoppages as a result. The U.S. accused Beijing of slow-walking license approvals. China blamed the Trump administration for breaking the Geneva agreement. That brought trade representatives from the U.S. and China to London this month to get the trade truce back on track. The two countries created a framework to restore the agreement reached in Geneva, subject to final approval from President Trump and Chinese leader Xi Jinping. The framework is expected to ease curbs on rare-earth exports from China, in exchange for the U.S. relaxing some restrictions on certain exports to China. The deal appears to allow China to keep the export-control system for rare earths in place, which would allow Beijing to curb supplies again in the future. Licenses for U.S. manufacturers to import rare earths from China would have a six-month limit, people familiar with the deal said. A spokesperson for China's Commerce Ministry said Thursday that China has been accelerating its review of rare-earth export license applications and has approved a certain number of compliant applications, without giving specific numbers. JL Mag Rare-Earth, a Chinese supplier of rare earth magnets for Tesla, Bosch, General Motors and others, said in a June 13 analysts call that it has gradually started to obtain export licenses for destinations including the U.S., Europe and Southeast Asia. The company, based in the southeastern province of Jiangxi, has benefited from government grants over the years. Last year, government grants accounted for as much as 45% of JL Mag's net profit, according to its latest annual report. On Thursday, Beijing Zhong Ke San Huan High-Tech, another magnet manufacturer, also announced that it received export licenses for some of its orders. Both JL Mag and Zhong Ke have increased their reliance on overseas buyers in recent years as margins at home dwindle. In 2024, JL Mag and Zhong Ke's overseas sales accounted for roughly 18% and 60%, respectively, of company revenue. Direct exports to the U.S. accounted for less than 10% of revenue at each of the two companies. Chinese customs data released earlier this month showed China's overall export growth slowed last month, with shipments to the U.S. sinking 35% from a year earlier in dollar-denominated terms, the biggest such decline in percentage terms since February 2020. Write to Hannah Miao at and Rebecca Feng at
Hindustan Times
an hour ago
- Hindustan Times
Fire erupts near Microsoft office in Israel's Beer Sheva: Report
Several fires were burning in a street in Israel's southern city of Beer Sheva, close to a tech park that houses a Microsoft office, CNN reported on Friday. Israel and Iran's air war entered a second week on Friday and European officials sought to draw Tehran back to the negotiating table after President Donald Trump said any decision on potential U.S. involvement would be made within two weeks. Israel began attacking Iran last Friday, saying it aimed to prevent its longtime enemy from developing nuclear weapons. Iran retaliated with missile and drone strikes on Israel. It says its nuclear programme is peaceful. Israeli air attacks have killed 639 people in Iran, said the Human Rights Activists News Agency. Those killed include the military's top echelon and nuclear scientists. Israel has said at least two dozen Israeli civilians have died in Iranian missile attacks. Reuters could not independently verify the death toll from either side. Israel has targeted nuclear sites and missile capabilities, and sought to shatter the government of Supreme Leader Ayatollah Ali Khamenei, according to Western and regional officials. "Are we targeting the downfall of the regime? That may be a result, but it's up to the Iranian people to rise for their freedom," Israeli Prime Minister Benjamin Netanyahu said on Thursday. Iran has said it is targeting military and defence-related sites in Israel, although it has also hit a hospital and other civilian sites. Israel accused Iran on Thursday of deliberately targeting civilians through the use of cluster munitions, which disperse small bombs over a wide area. Iran's mission to the United Nations did not immediately respond to a request for comment. With neither country backing down, the foreign ministers of Britain, France and Germany along with the European Union foreign policy chief were due to meet in Geneva with Iran's foreign minister to try to de-escalate the conflict on Friday. "Now is the time to put a stop to the grave scenes in the Middle East and prevent a regional escalation that would benefit no one," said British Foreign Minister David Lammy ahead of their joint meeting with Abbas Araqchi, Iran's foreign minister. U.S. Secretary of State Marco Rubio also met Lammy on Thursday and held separate calls with his counterparts from Australia, France and Italy to discuss the conflict. The U.S. State Department said that Rubio and the foreign ministers agreed that "Iran can never develop or acquire a nuclear weapon." Lammy said the same on X while adding that the situation in the Middle East "remained perilous" and a "window now exists within the next two weeks to achieve a diplomatic solution." Russian President Vladimir Putin and Chinese President Xi Jinping both condemned Israel and agreed that de-escalation is needed, the Kremlin said on Thursday. The role of the United States remained uncertain. Lammy also met Trump's special envoy to the region, Steve Witkoff, on Thursday in Washington, and said they had discussed a possible deal. Witkoff has spoken with Araqchi several times since last week, sources say. The White House said Trump will take part in a national security meeting on Friday morning. The president has alternated between threatening Tehran and urging it to resume nuclear talks that were suspended over the conflict. Trump has mused about striking Iran, possibly with a "bunker buster" bomb that could destroy nuclear sites built deep underground. The White House said Trump would decide in the next two weeks whether to get involved in the war. That may not be a firm deadline. Trump has commonly used "two weeks" as a time frame for making decisions and has allowed other economic and diplomatic deadlines to slide. With the Islamic Republic facing one of its greatest external threats since the 1979 revolution, any direct challenge to its 46-year-long rule would likely require some form of popular uprising. But activists involved in previous bouts of protest say they are unwilling to unleash mass unrest, even against a system they hate, with their nation under attack. "How are people supposed to pour into the streets? In such horrifying circumstances, people are solely focused on saving themselves, their families, their compatriots, and even their pets," said Atena Daemi, a prominent activist who spent six years in prison before leaving Iran.
