The Council of the European Union on 2 June 2026 published a cover note conveying the reasoned opinion of the Lithuanian Parliament (Seimas) on the proposed Multiannual Financial Framework (MFF) for 2028-2034 and the accompanying reform of the EU's own resources system. The opinion assesses the legislative proposals for compliance with the principles of subsidiarity and proportionality, as part of the EU's early-stage scrutiny of the long-term budget package.
The document, submitted under Protocol No 2 on the application of subsidiarity and proportionality, addresses two key proposals: a Council Regulation laying down the MFF for 2028-2034, and a Council Decision on the system of own resources. The opinion focuses on whether the EU's proposed actions are justified at the Union level rather than by member states, and whether the measures are proportionate to the objectives.
Subsidiarity and Proportionality Assessment
The Lithuanian Parliament's opinion raises concerns regarding the scope and justification of the proposed MFF. It questions whether certain expenditure areas, particularly those related to shared competences, could be more effectively managed at the national level. The opinion also examines the proportionality of the proposed own resources reforms, including potential new revenue streams, and their impact on national fiscal sovereignty. The Seimas calls for clearer evidence that EU-level action provides added value compared to member state initiatives.
Impact on Stakeholders
- EU Institutions: The opinion adds to the procedural record for the MFF negotiations, potentially influencing the European Commission's revisions and the Council's deliberations. It may encourage other national parliaments to issue similar opinions, strengthening the subsidiarity review process. - National Governments: The Lithuanian position signals caution on expanding EU budgetary powers, aligning with member states that advocate for stricter control over EU spending and revenue. It could embolden other capitals to push for a more limited MFF. - EU Taxpayers and Beneficiaries: If the opinion leads to a more constrained budget, funding for EU programs (e.g., cohesion, agriculture, research) may be reduced, affecting beneficiaries. Conversely, it could limit the introduction of new EU taxes, benefiting taxpayers. - EU Policy Sectors: Sectors reliant on EU funding, such as agriculture and regional development, face uncertainty if the MFF is scaled back. The opinion's emphasis on national-level management could shift resources away from EU-wide initiatives.
Institutional Follow-Up
The reasoned opinion will be forwarded to the European Commission, the European Parliament, and the Council for consideration. The Commission must respond if a sufficient number of national parliaments raise subsidiarity objections (the 'yellow card' procedure). The MFF proposal is expected to be debated in the Council and Parliament over the coming months, with adoption targeted before the end of 2027.
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