❌

Reading view

Voters or capital: Who rules Berlin?

On September 20, 2026, Die Linke achieved a historic result. With 25.7% of the vote, the party became the largest in the Berlin parliament for the first time. The traditional parties of power (the CDU, the SPD, and the Greens) are left standing. A left-wing government with Elif Eralp as governing mayor is, in theory, within reach.

The reason for this success is no mystery. It is substance. During the campaign, thousands of Die Linke volunteers went out into the neighborhoods. Door to door. Building to building. Up one stairwell, down the next. They came not with shiny brochures, but with one fundamental question: what keeps people awake at night?

For hundreds of thousands of Berliners, the answer is painfully clear: rent. The envelope that lands on the doormat every month. The knowledge that an ever-larger share of their wages flows straight into the bank account of some anonymous slumlord.

Die Linke wants to make rents affordable, break the power of listed real estate giants, and finally implement the outcome of the referendum. In that 2021 referendum, more than one million Berliners voted for the socialization of large housing stock.

Berliners consider no other party as competent on housing. The figures speak for themselves: after the election, 37% of all Berliners say Die Linke has the best solutions for affordable housing.

The establishment strikes back: the great reversal of the debate

Die Linke won on material issues: housing, rent, ownership. But within no time, the press and the talk shows have all but stopped talking about any of it. Suddenly the political debate is dominated by accusations of antisemitism. By stories about the Rote Hilfe, a left-wing solidarity organization that provides legal support to activists and prisoners. By alleged connections to criminal “clans.” By the suggestion that parts of the party lie outside the acceptable democratic framework. Suddenly, the burning question in the media is no longer how to lower rents, but whether Die Linke is “even fit to govern at all.”

It is the great reversal of the debate. Center stage no longer belongs to the unaffordable rents, the power of real estate corporations, and the housing crisis, but to the legitimacy of the party that won precisely on those issues. Meanwhile, the federal establishment works hard behind the scenes to make any possible socialization of real estate giants, the so-called Vergesellschaftung, legally impossible. Yet Article 15 of the German Constitution makes such socialization possible in principle.

What we see here is an organized counterattack from established economic and political power blocs. They open multiple fronts simultaneously – economic, legal, political, and ideological. Let us take a closer look at the nine forces that have now mobilized against Die Linke in Berlin.

1. Real estate capital

The most direct clash is with real estate capital. Die Linke wants to expropriate profit-driven housing companies that own more than three thousand units each. That concerns a total of over 200,000 housing units in the city. Among them is Europe’s largest real estate company Vonovia, which alone owns 138,000 units in Berlin.

On September 21, the morning after the election, BFW Berlin-Brandenburg, the lobby club of private project developers, pulls the emergency brake. The real estate group warns of “a step backward in housing policy.” Expropriation would slow new construction. Private capital would flee. The BBU, the association of housing companies in Berlin-Brandenburg, also springs into action. In Handelsblatt, Welt, Die Zeit, and Tagesspiegel it warns of “massive investment risks.” In short, as soon as its property and profit model is even slightly threatened, the real estate lobby pulls out all the stops and lets the organ roar.

Here you see class struggle in its most material form. Die Linke wants to shift power from large real estate owners to tenants and public ownership. The real estate sector wants to preserve the existing regime of private property, rental income, and investment returns.

What is at stake is concrete: who owns the apartments, who controls rental income, where does public money go, and who may decide politically about it?

2. Financial capital

Where there is real estate, there are banks. On that same September 21, Die Deutsche Kreditwirtschaft, the powerful umbrella organization of the German banking sector, issues an official warning. Socialization of housing would deter private capital. It would make real estate financing more difficult. It would drive risk premiums sky-high. It would – for hypocrisy knows no bounds – “reduce funds for education and social policy,” as if the German banking sector had ever been guided by such concerns in past decades.

Financial markets also react immediately. Vonovia’s stock price takes a hit and falls 1.7% against the trend, to its lowest level since June 2023. Deutsche Wohnen takes a beating too. Why? Because for these guys, housing in Berlin are not places where people live, love, and raise children. For big capital, housing units are investment vehicles and collateral for gigantic mountains of debt. If you remove those homes from the private market, you hit not only the slumlord but also the wealth manager, the banker, and the speculator behind the entire parasitic ecosystem of Frankfurt. That too is class struggle.

3. The Berlin business establishment

Traditional Berlin capital had already dug in before the election. The four major employer organizations – the Chamber of Commerce (IHK Berlin), the Handwerkskammer, the VBKI, and the UVB – closed ranks in their so-called Wahlarena der Berliner Wirtschaft, a joint election forum where the main parties had to defend their economic programs before organized Berlin business.

Their lobbying does not stop on election day. After Die Linke’s victory, VBKI chairman Harald Christ mounts his warhorse. His message? “Anyone who wants to expropriate private property in this city puts our future at stake.” The VBKI is one of the most elite clubs of Berlin businessmen, of the sort that lives more on returns from property and the labour of others than on their own labour. According to Harald Christ, who himself holds no elected public mandate, a party “that does not clearly distance itself from antisemitism” should not govern either.

Here you see how the two lines of attack of the establishment merge perfectly. On one hand, defence of sacred private property. On the other, moral blackmail. Die Linke must be treated as a pariah as long as it does not jump through all the hoops of the establishment.

4. The arms industry

A second economic front is the arms industry. For the militarists, Berlin must become a hub in the arms industry. Die Linke sees it differently. The party wants no expansion of military industry in the city, no military propaganda on the streets, and no army recruiters in schools.

That is blasphemy in the church of German militarism. In its hunger for new billion-dollar contracts, the German military-industrial complex of Berlin-Brandenburg wants to create a cluster for defence and aviation. Martina Klement, Minister of Economic Affairs in Brandenburg, already threatened that her state would “continue alone if necessary” if the Berlin government blocked its plans. She points an accusing finger at Die Linke’s critical attitude towards the Rüstungsindustrie, the arms industry. That too is class struggle: will Berlin become a cog in the booming war economy, or will the city build a dam against it?

5. The federal state and the institutional veto

Pressure on Die Linke comes not only from banks, real estate groups, and lobbies. Parts of the state apparatus are also intervening directly into the conflict.

The decision that Die Linke must under no circumstances lead the formation of a Berlin government seems to have been decided even before the polling stations closed on September 20. A few minutes after 6 pm, with the polls barely closed, Federal Chancellor Friedrich Merz gave a speech with one clear message: he continues his course, whatever the election result.

A day later, Merz announced he wants to fast-track with a federal law against the socialization of large real estate companies. His coalition had previously made agreements about this, but after Die Linke’s victory it suddenly became urgent. Germany, according to Merz, had to make it clear to international investors that private property remains safe and is not simply expropriated. That it is Merz, of all people, who brings this message is not without meaning. Before his return to politics, he chaired the supervisory board of the German branch of asset manager BlackRock from 2016 to 2020, one of the largest financial players in the world.

What is at stake is Article 15 of the German Constitution.Since 1949, it has explicitly stated that land, natural resources, and means of production can be transferred to common ownership or other forms of communal economy by law, provided compensation is regulated by law. That provision has never been applied. The struggle in Berlin is precisely about whether it can be used for the first time against large real estate companies.

Other statesmen also do not hold back. For example, Bavarian Minister-President Markus Söder (CSU) threatens to question financial transfers to Berlin if the city pursues too leftward a course. Bavaria is one of the richest states and a major net contributor to Germany’s system of redistribution. Bavaria is rich, Bavaria pays. And so Söder wants to dictate what Berlin votes. A dangerous Lega-Nord-ization of German federalism: the rich region buying off democracy in the poorer region.

Individual ministers also intervene via their official function. Federal Minister of Economic Affairs Katherina Reiche used her ministry’s Instagram account to attack Die Linke over expropriations, antisemitism, and alleged ties to organized crime. Die Linke has taken legal action against this, invoking the duty of neutrality that binds state institutions.

Even the judiciary has been drawn into the debate. Berlin Attorney General Margarete Koppers warned, amidst the controversy over alleged ‘clan’ contacts around Die Linke, that criminal networks deliberately seek out politicians. She did not accuse Die Linke directly, but her intervention gave additional institutional weight to the image built around the election winner.

Merz and his Vice Chancellor and Finance Minister Lars Klingbeil (SPD) know well what is at stake: if socialization of large real estate companies succeeds in Berlin, it could also raise expectations elsewhere – in the automotive industry, energy sector, or other strategic sectors.

It is precisely this precedent that must be stopped. An electoral victory for Die Linke must under no circumstances grow into an infringement of the existing order of property, let alone into an example that sparks other social struggles.

6. The police and security apparatus

A sixth pressure line comes from the police apparatus. After the election, certain police unions in Berlin warned that a government led by Die Linke could weaken the police by restricting its powers, its surveillance, and its capacity for repression. The Gewerkschaft der Polizei (GdP) went further and warned SPD and Greens that “the security of this city is at stake.” It also suggested officers might leave Berlin to work in other German states.

That threat quickly gained a practical dimension. CDU-led governments in Baden-Württemberg and Brandenburg openly invited Berlin police officers to transfer and explicitly linked that recruitment campaign to the prospect of a government led by Die Linke.

That is organized pressure and blackmail from certain police unions and conservative state governments: accept our vision of police and security, or we will drain your force dry.

7. The Israeli Embassy

And then there is the elephant in the room: the campaign around antisemitism. On September 26, ARD, the major German public broadcasting corporation, found that the controversy over antisemitism had by then “overshadowed all other topics since the election victory.”

Ambassadors are normally not supposed to interfere directly in the host country’s domestic political decision-making. That did not prevent Israeli Ambassador Ron Prosor from warning after Die Linke’s victory of an “immediate existential threat” to Jewish life in Berlin. Prosor, a Netanyahu loyalist and critic of the International Criminal Court, accuses parts of Die Linke of “unrestrained antisemitism” and hostility toward Israel.

Virtually simultaneously, Josef Schuster, Chairman of the Central Council of Jews in Germany, addressed the SPD and the Greens directly: anyone who helps Die Linke into the Rote Rathaus, the Berlin City Hall, is, in his view, putting social cohesion and Jewish life at risk.

Within the SPD and the Greens, that Israeli pressure finds a willing ear. SPD politician Martin Hikel calls cooperation impossible with a party that, in his words, “tolerates antisemitic statements.” Antisemitism and the defence of Israel have now become central topics in initial talks between Die Linke, the SPD, and the Greens. In this way, the Israeli intervention weighs directly on the political climate in which a new Berlin government is being negotiated.

Behind that lies a broader strategic entanglement. Despite the genocide in Gaza, Germany and Israel continue expanding their military-industrial cooperation. Israeli arms producer Elbit Systems signed new strategic cooperation agreements this year with companies including TKMS and Diehl Defence, among other things for naval weapons systems and drones for the Bundeswehr. Elbit wants to build up to eight new facilities in Germany over the coming years.

That makes the struggle over Israel material as well. It’s not just about Gaza, apartheid, and Israeli settler colonialism, but also about increasingly close military and industrial interconnection. In such a context, the label “antisemitism” takes on particularly political charge when used against forces opposing the Israeli government, German rearmament, or that growing military-industrial cooperation.

8. ELNET: the international lobby network

Beyond the Israeli embassy lies a much broader lobby infrastructure. What stands out is how the theme of antisemitism repeatedly comes to centre stage whenever a consistent left force achieves electoral breakthroughs.

In Great Britain, three major newspapers declared jointly in 2018 that a government under Jeremy Corbyn would constitute an “existential threat” to Jewish life. Corbyn had to be politically delegitimized because he broke with the consensus on Israel, openly supported the Palestinian cause, and simultaneously defended a socio-economic program that collided head-on with British establishment. The accusation of antisemitism thus became a weapon in a broader struggle to declare him unfit for governmental power.

The same pattern surfaced in France. In 2024, Yonathan Arfi, chairman of the umbrella organization of Jewish institutions in France (CRIF), declared that “La France Insoumise (LFI) has no place in government.” Again the accusation was: “antisemitism.” In reality, it was about left criticism of the genocide in Gaza. For recent French municipal elections, French security service Viginum exposed a massive Israeli disinformation campaign run by the shadowy Blackcore. With fake sites, false profiles, fake news, and AI bots, LFI candidates were systematically smeared.

In Berlin, attention focuses mainly on ELNET Deutschland, a lobby organization that seeks to strengthen Israeli-European ties. The money for this little party comes mainly from the US. The German office received over one million euros from ELNET US in a single year.

ELNET financed trips to Israel for at least 51 Bundestag members and brought six IDF officers to the capital for talks with politicians, the Bundeswehr, and media shortly before the Berlin election. Thus ELNET forms an important link between Israeli security circles and the German political establishment, and possesses considerable financial resources and direct access to decision-makers. In the current Berlin debate, that infrastructure strengthens a political climate in which attitude toward Israel increasingly serves as a touchstone for the question who may and may not govern.

9. The United States

Finally, there is American interference. The United States has made no secret in its official National Security Strategy that it actively supports far-right and nationalist forces in Europe – such as the Rassemblement National in France or the AfD in Germany. For Trump, such Europe offers a double advantage: allies who stand closer to Washington, but simultaneously an EU that remains internally divided and less able to act as an independent international power.

American heavyweights like Elon Musk, Donald Trump, JD Vance, Marco Rubio, and former ambassador Richard Grenell have intervened openly in German politics in recent years, typically in ways giving AfD more legitimacy and political space. When AfD scored in Saxony-Anhalt, Trump, Musk, and Grenell were in the front row to cheer. Trump publicly celebrated the result, Musk wrote “Gut gemacht!” (Well done!), and Grenell spoke of “a great victory and a new day in Germany.” That was barely two weeks before the Berlin election.

Meanwhile, the American embassy in Germany set aside approximately $400,000 this summer for German civil society organizations, among other things for projects around “countering antisemitism.” They use diplomatic funds to determine domestic political agendas. On Washington’s instructions, American embassies in Europe feed the witch hunt against the left, while helping the far right into the saddle.

A desperate move

Add all these forces together (banks, real estate companies, employers, arms industry, judiciary, federal government, embassies, and international capital) and you see what really happens in Berlin: different factions of the ruling class defend their own interests but find each other as soon as existing property and power relations are touched.

The first front is material. Real estate capital defends its rents and land ownership, banks their credits and collateral, investors their returns, the arms industry its billion-dollar contracts and state orders. Their interests differ, but on one point they converge: Die Linke must not undermine the grip of private capital on housing, investments, and public funds.

The second front is political and ideological. As soon as those material interests come under pressure, the debate shifts to antisemitism, extremism, Rote Hilfe, and alleged clan connections. The goal then is no longer only to block concrete reforms. Die Linke itself must be pushed outside the boundaries of the politically acceptable.

But let’s be honest: that smear campaign is nothing but a desperate move. The elites play dirty because they lack arguments. No one can look Berliners in the face and claim €1,500 per month for a shack is a good thing. The housing crisis is not an extreme position, but daily reality for the absolute majority of the population, including many voters of the SPD, the Greens, or the right.

Because the establishment cannot win that debate, it tries to impose another one. The smoke bombs go off one after another: “antisemitism!” “clans!” “Islamists!” “Rote Hilfe!” The less of an answer there is to the social question, the louder the noise about Die Linke’s supposed unfitness to govern at all.

The real extremism in this world is not a party that organizes tenants. The real extremism is a society in which millions of people are driven out of their city because a handful of vultures demand their returns. The real extremism is a system that reduces housing to speculation and war to a profit model.

Die Linke won on the fundamental question: whose city is Berlin? Who sets the rules, who controls the bricks, and whom should the city serve? The answer from Berliners was clear. The intensity of the counterattack shows how well the other side understands what is at stake.

Nobody should fear that polarization. It is simply the noise of class struggle: economic powers defending their property and capital, state powers trying to guard the boundaries within which an election result may change something. The scent of panic hangs in the corridors of power. There is no reason to turn defensive or to retreat. There is all the more reason to rely on the people and to mobilize. Because in the end, that is where the decisive question lies: who truly forms the majority in Berlin, and who holds the power to stand in its way?

Peter Mertens is a writer and the Secretary General of the Workers’ Party of Belgium (PTB/PDVA).

  •  

EU Parliament’s 7 October memorial honours Israelis, sidelines Palestinians — and sows division

An EU Parliament memorial for victims of the 7 October attack caused disarray and anger as well as grief in a divided European house.

It was crowned by a towering Israeli flag, alongside the EU’s.

The exhibit set up in Strasbourg’s parliament included maps showing Occupied Palestinian Territories as part of Israel and sold trinkets made from debris of Israeli missiles.

But it made no mention of the 74,200 people killed by Israel in Gaza in the past three years, after Palestinian militants Hamas killed some 1,200 Israelis in a surprise attack.

This situation struck a chord with the sole Palestinian in parliament, left-wing French MEP Rima Hassan, who tried to take down the Israeli flag in protest, and toppled over the EU one as well in an unwanted domino effect.

“My action was in no way directed at the victims of 7 October or their memory,” Hassan told EUobserver. 

Instead, it targeted “this incessant and untenable double standard, for a Russian flag would never be permitted, and rightly so, within the [EU] institution’s premises”.

The memorial was organised by German centre-right MEP Hildegard Bentele, who chairs the parliament’s Israel delegations, alongside the Israeli embassy, and the The International Movement for Peace & Coexistence (IMPAC) group in Brussels, as well as others.

“During a conversation with a member of my team, the guest artist [at the EU Parliament memorial] claimed that Palestine ‘does not exist’,” Hassan added.

Her family were expelled from their birthplace by Israel in 1948 along with hundreds of thousands of others in what Palestinians call the Nakba (Catastrophe).

But in the cacophony of narratives in the EU assembly, those who saw her anti-Israel flag protest as offensive or antisemitic had echoing voices.

This article continues, but the full version is available only to EUobserver.com subscribers. Visit account.euobserver.com/membership

  •  

Rubio pushes for “MAGA Nationalism” with “the cradle of Democracy” as backdrop

With the Acropolis as a backdrop, US Secretary of State Marco Rubio Rubio lavishly praised the Ancient Greece with the usual clichés, all of them except the most important one: Greece is the cradle of Democracy. How could he talk about “democracy”? On the contrary. Rubio chose to rolled out the MAGA agenda as if […]

The post Rubio pushes for “MAGA Nationalism” with “the cradle of Democracy” as backdrop appeared first on Keep Talking Greece.

  •  

Morocco’s surveillance state does not stop at Western Sahara — and Europe can no longer pretend not to know

In April 2021, I told The Guardian that Sahrawi activists were having their phones and internet connections hacked.

At the time, we could describe what was happening to us. We could not see the machinery behind it.

Five years later, Amnesty International’s new investigation, “We Start With the Verdict”: Inside Morocco’s Surveillance Machine, gives those warnings a disturbing new context.

Amnesty describes a surveillance ecosystem involving spyware, physical surveillance, location tracking, informants, judicial pressure and smear campaigns. Western Sahara is not peripheral to its findings.

The organisation devotes a case study to Sahrawi activists and reports that a former member of Morocco’s domestic intelligence service, identified as “Safir,” described Sahrawis and Riffians as priority intelligence targets, including beyond Morocco. Amnesty says it independently verified his identity, employment and key elements of his testimony.

The report also contains forensic evidence involving Pegasus spyware and documents cases connected to Sahrawi activism that reached European territory.

The people Amnesty examined are the tip of the iceberg. They are documented cases: people researchers could interview, devices they could examine, or targets for whom other evidence was available.

Surveillance is secret by design. Most people never learn that their phones have been compromised, and most suspicious devices will never reach a forensic laboratory.

That is why the chronology matters.

Chilling effect

On 8 April 2021, The Guardian quoted my warning that Sahrawi activists’ “phones and internet connections are hacked.” We were describing the symptoms years before Amnesty’s latest investigation exposed more of the machinery.

But surveillance is not simply about collecting information.

When a security service knows who an activist speaks to, where that person travels and what exists inside a phone, information can become power.

Amnesty documents cases in which private information gathered through surveillance later appeared in media coverage and coordinated smear campaigns against human rights defenders.

The organisation is careful: it could not independently establish the source of every piece of private material published. But it says the nature of some material raises serious concerns that surveillance-derived information may have reached media actors.

For Sahrawis, that raises an obvious question: How does private information about activists move from their lives and devices into the public sphere?

That question deserves independent forensic investigation.

But Amnesty’s report should provoke another examination — this one in Washington and European capitals.

For decades, Western governments have built close security relationships with Morocco around counterterrorism, intelligence cooperation, migration and regional stability.

The question is not whether those relationships should exist. It is whether the West has adequately examined what happens to security capabilities once they are in the hands of its partners.

Amnesty does not establish that every security capability Morocco obtained through Western cooperation was used against Sahrawis. The evidence does not support such a sweeping conclusion.

It does, however, justify harder questions.

What safeguards accompanied security cooperation? Who monitored end use? What happens when capabilities developed or acquired in an environment shaped by counterterrorism are directed toward peaceful human rights activism?

That is the line separating security from repression.

Western Sahara struggle

The contradiction is especially striking because Sahrawi human rights activism has often relied on peaceful means: demonstrations, documentation, journalism and engagement with international institutions.

Amnesty reports restrictions on expression and assembly concerning Sahrawi rights, alongside reports of arbitrary arrests, prolonged surveillance, restrictions affecting families and the dispersal of peaceful demonstrations.

Europe has encountered similar contradictions in its relationship with Morocco.

In June 2021, the European Parliament explicitly rejected Morocco’s use of border control and migration, particularly involving unaccompanied minors, as political pressure against Spain.

Yet the same resolution emphasised the longstanding relationship and cooperation between the European Union and Morocco in counterterrorism, migration and trade.

That contradiction should matter to Europeans.

When democratic governments make another state indispensable for stopping terrorism, controlling migration or providing intelligence, they provide more than resources. They provide leverage. Eventually, fear of losing cooperation can make scrutiny of a partner more difficult.

Europe has confronted another warning sign. In its response to the corruption scandal that engulfed the European Parliament, the Parliament itself denounced alleged attempts by Morocco and Qatar to influence lawmakers and staff through acts of corruption.

These remain allegations. They do not mean that every European position favourable to Morocco was corrupt. But they demonstrate why foreign influence over democratic institutions requires serious scrutiny.

European vs American foreign policy

Western Sahara remains an issue on the United Nations agenda and is tied to a decades-long international process concerning the political future of the territory.

That should matter to an EU that regularly invokes a rules-based international order.

Morocco has rejected previous allegations concerning Pegasus and described earlier Amnesty findings as baseless. Amnesty says it provided Moroccan authorities with a summary of its latest findings before publication and invited a response but received none before the report was published.

Those denials belong on the record.

So does the evidence.

The test of a human rights policy is not only how a democracy responds to abuses by its adversaries. The harder test is what it does when credible allegations concern a security partner.

For Sahrawis, however, this story is older than spyware.

For nearly half a century, generations of Sahrawis have lived through restrictions and documented abuses connected to political expression over the future of Western Sahara. Children have grown into adults watching what can happen when someone speaks publicly: surveillance, imprisonment, smear campaigns, pressure and fear.

After all these years, what Sahrawis are asking for is not complicated.

We are not asking the world to choose an answer for us. Nor should the outcome be written in advance in our favour.

We are asking for something more elementary: Treat the Sahrawi as a free human being, capable of thinking, choosing and expressing a view about the future of the land he or she calls home without fear.

It is easy to live in a democratic society, protected by freedom of expression and equality before the law, and then propose a political solution for a distant people who will have to live with its consequences every day.

But a human question should come before the geopolitical one:

Would you accept for yourself and your children a political order in which expressing your views about your homeland could expose you to surveillance, intimidation or punishment?

A Sahrawi is not a number in a diplomatic file, a detail in a geopolitical bargain or a security problem to be managed.

A Sahrawi is a human being, with a memory, a family, a homeland, an opinion and a future.

After nearly 50 years, perhaps it is time simply to hear that voice as it is, rather than as others interpret it.

Give Sahrawis one day without fear.

One day to speak without surveillance, without pressure and without wondering whether their words will reach their phone, their workplace, their home or their family.

Do not write the answer for them.

Just let them speak.

If any political solution is truly just, why should it fear the voice of the human being who will have to live under it?

  •  

Cut the EU budget and we all lose

When certain governments discuss the EU’s next seven-year budget, their first reflex seems to be: what can we cut? That is the wrong question. The real question is not how much the EU budget costs, but how much an insufficient budget will cost us all.  

Economic benefits of EU membership are estimated to be two to six times the financial contribution of individual member states. For every euro we contribute to the EU budget, we can receive up to six euros in return.

That is the power of investing together: European investment delivers more than fragmented national spending. And it does so with a budget of just one percent of EU GNI, while national budgets can reach 50 percent.

The EU budget is not simply money transferred from national capitals to Brussels: it is an investment that creates value benefiting citizens through stronger economies, better infrastructure, food security, cutting-edge research, educational opportunities, regional development, and security.

Ultimately, all member states benefit from the added value created by the EU, making the concept of ‘net contributors’ obsolete.

Easing the pressure on national contributions is a legitimate objective, and it has a clear solution: an EU revenue reform. 

The European Parliament supports the basket approach of the European Commission on new own resources and its proposals. It also proposed three additional options capable of generating substantial revenue by 1 January 2028: a digital service levy on major platforms (€25.2bn per year), a levy on online gambling (€3.9bn per year) and a crypto-assets-based own resource (€3bn per year).

Our position is clear: large global companies that benefit most from Europe’s single market should contribute fairly to the EU budget that makes those benefits possible.

Cutting the EU budget may look like saving money. But if it means weaker competitiveness, less social investment and a less secure Europe, we save nothing and taxpayers foot the bill.

The European Union’s common budget has not grown in real terms for 40 years. On the contrary, its purchasing power has been steadily eroded due to high inflation. The current EU budget has lost around 10 percent of its purchasing power compared to when it was adopted in 2020. 

A more ambitious EU budget does not automatically mean that member states will have to contribute substantially more from their national budgets. When amounts are compared in constant prices and as a share of the size of the European economy – like with like – a more realistic picture emerges. 

In terms of spending capacity, and without counting repayment of the Covid-19 recovery fund (NextGenerationEU), the commission’s proposal for the 2028-2034 budget would be below the relative size of the current 2021-2027 MFF at the time of its adoption.

Even with parliament’s proposed increase for key EU programmes, member states’ contributions would still not substantially increase. 

Let us not forget: Europeans benefit considerably more than their countries’ headline contributions suggest. The single market is the clearest example. By removing barriers between 27 economies, it creates opportunities and delivers growth that no country could generate alone. 

By reducing the budget, the EU and its member states will have less capacity to deliver the economic and social benefits that citizens expect. We’ll have less cohesion, less competitiveness, a weaker agricultural sector, less global influence, reduced social investment and a much less secure Europe. And this also comes at a cost. A big one.

Instead of “what can we cut” we should be asking ourselves, “how can we finance a budget that delivers more for all”.  

If we genuinely want to use limited public resources efficiently, we must invest together. Economies of scale work for successful businesses, and they work for Europe.

Siegfried Mureşan (EPP, Romania) and Carla Tavares (S&D, Portugal) are the parliament’s co-rapporteurs on the EU budget, also known as the multiannual financial framework (MFF)

  •  

Indonesia should count the real cost of its mineral incentives

Every year, the Indonesian government forgoes taxes it could collect. Through tax holidays, rate cuts and exemptions, it courts investment while easing the burden on households and small businesses. Economists call this “tax expenditure” because giving up revenue is another way of spending public money. The Ministry of Finance expects it to reach 564 trillion […]

The post Indonesia should count the real cost of its mineral incentives appeared first on Asia Times.

  •  

Choices that will define Asia’s AI future are coming into focus

We are fortunate to live at an incredible moment in history. As more and more AI applications have become available, people have turned to them to seek advice, build businesses, express ideas, learn, and improve their health and quality of life. Nowhere is this more clear than in Asia. AI is already turbocharging small businesses […]

The post Choices that will define Asia’s AI future are coming into focus appeared first on Asia Times.

  •  

Plainly, Trump doesn’t really care about the midterms

With a month still to go before America’s mid-term congressional and gubernatorial elections, the prospect of a “blue wave” of Democratic success in the House of Representatives, the Senate and in many governorships is looking increasingly likely. But whether that forecast holds true or not, one important aspect has already become clear. It is that […]

The post Plainly, Trump doesn’t really care about the midterms appeared first on Asia Times.

  •  
❌