MEPs push for new fund to aid EU's Eastern frontiers
Polish Members of the European Parliament are mobilising in Brussels. They wish to advocate for creating a new EU fund from which eastern provinces could benefit. The aim is to provide additional money for investments in border regions. These funds would assist Poland and other Russian neighbours.
The 2025 EU budget is expected to include money to support strengthening the eastern border. The problem is that, first, the anticipated sum falls short of the needs expressed by frontline countries. Second, this sum will have to be shared with other countries. Third, it is earmarked for supporting the physical strengthening of the border. Meanwhile, in the border regions, the economic consequences of the problematic neighbourhood are also a concern.
Partially due to these reasons, Polish MEPs have started building a cross-party coalition in the European Parliament. The coalition aims to pressure the new European Commission to create an entirely new Protection and Development Fund. Its main beneficiaries would be countries such as Poland, Romania, and the Baltic states.
The initiators of this idea have not revealed how large this fund would be. "Ultimately, we are talking about several to over ten billion euros," one of the MEPs indicates. The fund would be based on two pillars. The first would address economic issues - it concerns financing aid programmes for businesses, especially micro and small firms, from regions that have felt the economic impact of the war.
"Unemployment reaches 16 per cent"
After the war, the funds could be used to seal the Polish border, among other things. "If we do not strengthen the border now, we will not be able to handle the influx of everything that will later come from Ukraine and flood the European market," one of the MEPs points out.
Border regions, such as Lublin, Podkarpacie, and Podlasie, as well as others in countries bordering Russia, Belarus, and Ukraine, have shouldered the greatest burden of Russian aggression and hybrid warfare. In Poland's case, border counties experience unemployment reaching 15-16 per cent. There is a visible outflow of investors. Hence, a special aid and support fund for these regions is necessary, argues KO MEP Marta Wcisło.
The second pillar of the fund would concern security issues, thereby strengthening border infrastructure, but on a much broader scale than what the EU currently offers.
Will a digital tax help?
The question is whether there will be money for the new fund or if new sources of EU revenue will be needed, especially since none of the member countries want to increase their contributions. Therefore, voices in the European Parliament suggest that it might be necessary to introduce a digital tax—and not wait for a move from Donald Trump towards Europe.
The President-elect has announced that one of his first economic decisions following his January inauguration will be raising tariffs on products from China, Canada, and Mexico. How will he act regarding the EU and big tech companies? However, it can be assumed that he will likely favour the latter due to his close cooperation with billionaire Elon Musk.
Another potential funding source could be EU budget surpluses, which—as experience shows—ultimately tend to be slightly higher nominally than forecasts at the time of their adoption.
A letter was sent. Dozens of signatures
A letter proposing the creation of the Protection and Development Fund has already been sent to the European Commission. It was signed by around 40 MEPs from various factions, including the European Conservatives and Reformists, to which PiS belongs.
However, it is noted that none of the PiS MEPs responded to the call for support for the letter. There is also intense lobbying directly with future commissioners. Piotr Serafin, the future Polish commissioner responsible for the EU budget, is expected to support the initiative. We can also count on support from Raffaele Fitta, the future vice-president of the European Commission in charge of cohesion policy and regional development.
MEP Andrzej Halicki from KO believes there are chances of creating a new fund. Initially, it could be a pilot project.
There are unused resources in the EU budget, and certain reallocations can be made. There are settlements, and exchange rates change over time. There is always a bit more in the budget than originally planned, says Halicki.
In his opinion, tens or hundreds of millions of euros could be included in such a pilot fund and, ultimately, sums exceeding a billion euros. This money would be used to create investment programmes in these areas to benefit local businesses. KO MEPs hope to persuade the commission to implement such an instrument ultimately.
Negotiations are taking place alongside the adoption of the EU budget for 2025, which amounts to 199.4 billion euros. Within it is the Solidarity Fund, which aims to support member states affected by natural disasters. Poland is applying for funds from this source to address flood damage. MEPs also hope that money will flow from it to strengthen border infrastructure and ease pressure on the Belarusian border.
