A bold way to finance the strategic priorities and the future budget of the European Union is presented by Kyriakos Pierrakakis, as quoted in a Politico report.
Can money come out of nowhere? The Minister for Finance of Greece, Kyriakos Pierrakakis, says he can to be found in... radio waves, notes in today's publication the Politico.
The president of the Eurogroup presents one—as Politico comments— potentially bold new way of raising money for the EU: the redirection of profitable revenue from national radio frequencies (or spectrum) auctions in Brussels, precisely at the time when the block's seven-year budget is intensified.
«It's a telecommunications policy» said in an interview, citing the former Italian Prime Minister's plan to reverse Europe's economic decline, which called for greater coordination and harmonisation in the way in which national governments grant licences to frequencies powered by mobile networks. Such regulation would also have the advantage of encouraging greater development of critical technologies across the block.
Europe's telecommunications providers are currently located faced with a patchwork of national procedures to ensure access to this critical asset, including auctions whose revenue flows into the national budgets.
As noted in the relevant report, Since 2020 providers have spent more than 50 billion euros on spectrum licenses, according to Connect Europe. The process has long been criticised for pushing suppliers financially instead of encouraging investment, with former EU Commissioner Thierry Breton, to speak of «Cash cow» of the governments.
Kyriakos Pierrakakis invited Europe to rely on what he described as The «most innovative auction» The, referring to Greece's 2020 plan to allocate 25% of the revenue from spectrum auctions for a new venture capital fund investing in the growing 5G ecosystem.
The head of Eurogroup provides for Breakdown of 75% of auction revenue in the Multiannual Financial Framework, the EU's long-term spending plan, 25% being channelled through a European Investment Bank fund. With such a fund, he supports, «We will end up with a much larger sum in Europe's hands».
The non-conventional proposal, as characterized by Politico, could give negotiators a new revenue source at EU level – also known as «own resource» with the terminology used in Brussels – as Europe remains divided about the budget of the 2 trillion euros of the block between the so-called... small countries that want to limit spending and those who want to maintain current levels.
Pierrakakis said he also wanted to link this idea of «non-zero sum» by trying to strengthen European industry champions as well as reduce the bloc's dependence on American technology.
However, as noted, the proposal can be met reactions between EU states, which have long resisted reform in this area and have expressed its outrage at the violation of a national competence – and a source of budget revenue from Brussels.
«This idea has levels. There is a very visible level, which is just the timing of auctions» said Mr. Pierrakakis, arguing that reducing fragmentation and approximation to a single market would already be a great victory. «The appreciation to our champions and our telecommunications operators is self-evident, before we proceed to the debate on revenue».
He argued that a new example emerges after the recommendations of recent years from the reports on European competitiveness Dragi and the former Italian Prime Minister Enrico Leta.
Specifically, he mentioned the Capital Markets Association, the long-term work of the EU. to create a single market for investment and financing, which has recently gained ground.
However, even with his admission, His idea of the new distribution of revenues from radio waves will be difficult to rely on.
«I don't think he'll gain broad support» said a national government official, maintaining his anonymity. The official noted that countries would be reluctant to give up revenues and are likely to resist any attempt by the European Commission to secure a greater role in spectrum coordination through the Digital Networks Act, which is under negotiation. «In general, allowing the Commission to collect spectrum fees is not something that Member States like» repeated a second official from another government.
The chief negotiator for the proposal in the European Parliament, the centre Polish MEP Michal Kobosco, had previously stated in an interview that he did not want to insist on «status quo that government takes these huge amounts from operators and then nobody has a say in how this money is used».
K. Pierrakakis expressed hope that his idea could fuel the EU budget negotiations. 2028-2034 and the wider debate on European competitiveness. He said that «Many» Mr President, I would like to thank the rapporteur for his excellent report. «adopt the central philosophy of the idea». «We need to move on to a more detailed and detailed phase where we will need a specific impact study, [specifically] steps, etc., to discuss this further.».
