“At the Council, we discussed the EU’s supplementary budget, the situation of the economy and the euro area, further political, economic, and military support for Ukraine, and the situation in the Middle East at the level of heads of government for the first time. The long-term budget for the period 2021–2027 was made before Russia’s ultimatum, the manipulation of energy supplies and prices, and the full-scale war against Ukraine. We discussed how the budget of the European Union could be more flexible to respond to new challenges,” Prime Minister Kaja Kallas said in Brussels after a meeting of the heads of state and government of the EU.
“It is important for Estonia that the budget takes into account the drastically changed security situation and that the focus is on increasing defence capabilities,” the prime minister said. “I explained that we urgently need to make up for the peacetime years and invest more in our defence, because unfortunately, it is not enough just to reallocate the existing budget, but we need additional sources to ensure defence readiness. Every country must also invest in its own defence, as we have already decided to do in Estonia,” Kallas said. Heads of state and government of the EU will continue their budget discussions in December.
“The budget must also take into account the long-term support for Ukraine and give a clear signal that we will not give up; at the same time, it must be sustainable. Alongside support for Ukraine from the EU budget, we discussed the possibilities of using Russia’s frozen assets for the benefit of Ukraine. The European taxpayer does not have to and cannot pay for the damage caused by the aggressor. I explained to my colleagues and the European Commission Estonia’s solution to use the funds to support Ukraine,” Kallas added.
“We also discussed the current state of the economy of the European Union and its competitiveness. At the meeting, I stressed that, in addition to increasing our defence readiness, the budget must also reflect how Europe becomes more competitive. As we are operating in a single internal market, with national economies intertwined and equal competition at the heart of economic progress, the state aid race must be stopped. This is not sustainable, not even for rich Member States,” Prime Minister Kaja Kallas said.
Heads of state and government of the EU also discussed the situation in the Middle East. “We discussed developments and positions following last week’s extraordinary Council. It is clear that Israel has the right to defend itself against Hamas terror, but it must follow international and humanitarian law to protect civilians. It is important that humanitarian aid reaches Gaza as easily as possible,” said Prime Minister Kallas.
