Resolution of the UEF Federal Committee: OUR FEDERAL EUROPE, SOVEREIGN AND DEMOCRATIC

The Federal Committee of the Union of European Federalists,

gathered online on December 19, 2020

Underlining

• The current crisis has demonstrated the importance of acting united as Europeans in an effective and supportive manner, in order to strengthen the ability to act globally.
• In response to the pandemic, the Union has faced this unprecedented challenge, indicating both the need and the will to enhance its political unity.
• The need for collective action becomes even more evident with the second wave of the pandemic, which began in autumn 2020.

Welcomes with relief

• the election of Joe Biden and Kamala Harris to the White House.

Stressing

• how this pivotal shift in American policy must be met with an accelerated effort in Europe to enhance the EU's ability to be an authoritative partner in reshaping multilateralism.
• Recognizes the opportunity this election presents for establishing a new Atlantic Pact based on equal partnership, aimed at promoting more democratic global governance.

Welcomes

• the European Council's agreement on the Recovery Plan, reached on 21 July 2020, which incorporates many of the recommendations made in the European Parliament's resolutions of 17 April and 15 May 2020, as well as the proposals in the Spanish Non-Paper on the Recovery Strategy (17 April 2020), the Franco-German Recovery deal (18 May 2020), and the European Commission's Next Generation EU communication (27 May 2020). This agreement marks the beginning of a financial union through the common issuance of Union debt.

Stresses the importance of

• launching a European Health Union, based on Article 168.5 of the Lisbon Treaty (TFEU), as announced by the Commission on 11 November 2020 and advocated by the Union of European Federalists in its Federal Committee resolution of 4 July 2020.

Recalls

• that, in addressing the coronavirus crisis, the Union has also acted as a responsible global partner, supporting initiatives such as the COVAX Facility for equitable access to COVID-19 vaccines.
• that the coronavirus pandemic is a transnational public bad with great health, economic, and social consequences that requires global coordination by a reformed, strengthened and more democratic and efficient United Nations system, with a particular role for the World Health Organisation;

Expresses its satisfaction

• at the agreement achieved between the European Parliament and the Council on 10 November 2020 on the new MFF 2021-2027 and the Own Resources package that increased the previous proposal in more than €15 billion on conditioning European funds to respect for democratic values and the Rule of Law, thus correcting the Council's original position;

Notes with regret, however

• the veto of the Hungarian and Polish governments to the proposed 2021-2027 MFF and new Own Resources Decision of 16 November 2020, in order to dilute the said Rule of Law mechanism;

Underlines

• that the Hungarian-Polish veto recalls the urgency of reforming the Treaties in order to abolish unanimity in key financial, budgetary, and fiscal matters, and therefore the need to convene the Conference on the Future of Europe as soon as possible;

Highlights

• The crucial role of the European Parliament to reach a satisfactory agreement to correct the cuts in the budget lines for European youth programmes, (Erasmus programme, +€2.2 Billion), research (Horizon, +€4Billion), cultural sectors, (Creative Europe, +€600Million), citizenship (Rights and Values, +€800Million) and health coordination programmes (EU4Health, +€3,4Billion) aimed at building the future of Europeans;

Emphasizes

• the importance of the reform of the system of own resources, as a condition for making permanent an instrument such as the Next Generation EU, which provides the EU: i) with a stabilisation mechanism capable of structurally supporting the convergence and the overall resilience of the Euro area, as repeatedly requested by the ECB itself; ii) with a rallying point for national programmes of increased public investment;

Strongly supports

• the confirmation of a binding timetable for the introduction of new own resources in the form of new European taxes as the following: tax on non-recycle plastic will enter into force in 2021, the border adjustment mechanism for carbon emissions, and the Digital Service Tax in 2023 and the Financial Transaction Tax (FTT) and the Common Consolidated Corporate Tax Base (CCCTB) in 2026;

and while it affirms that

• increased competences for the European Parliament, in particular concerning the revenue side of the EU budget, must be grounded in a significant enhancement of its democratic legitimacy and, as a consequence, it becomes urgent the establishment of the necessary legal framework to ensure the election for the European Parliament cease to be a collection of national elections and become truly European,

strongly highlights

• the need to give the European Parliament the power to share decisions on the collection and spending of the European Union's own resources. This implies a reform of the Treaties aimed at attributing a fiscal competence to the European Union. This is also the request by the European Parliament in the legislative resolution on the draft Council decision on the system of Own Resources of the European Union adopted in plenary session on 15 September 2020, in which it is stated that “In view of future deliberations about treaty changes, and using the momentum of the Conference on the Future of Europe, the democratic legitimacy, accountability, resilience and alignment with major policy objectives of the Union budget’s revenue side, should be further strengthened by granting the European Parliament enhanced competences in the legislative decision making and a more active role in the monitoring of the implementation of the own resources system as well as in the underlying sectoral legislation” ;

Recalls

• that the pandemic has reminded Europeans of the need, in front of common transnational challenges, of supranational responses, of common action and co ordination of policies, and has shown the damage done by the multiple vetoes and complexity which defeat projects and block long-term visions; therefore, the importance of federalisation and of affirming the principle of subsidiarity, allowing efficient action while guaranteeing open and constant democratic participation to legitimate a sense of common destiny, and with information and consultation devolved to the lowest appropriate levels;

Recalls moreover

• that the nascent financial and fiscal union embedded in the Recovery Plan for Europe poses fundamental democratic and accountability dilemmas; that the French government aims to present, during the first half of 2022, the proposal for a "Common Security and Defence Union", with or without revision of the Treaties.

In this framework, the Federal Committee of the UEF claims strongly the start of Conference on the Future of Europe

The Conference on the Future of Europe presents a unique and urgent opportunity to initiate a concrete project for a stronger political Union of a federal nature. This should complement steps already taken toward a financial and fiscal union, engaging citizens in a transparent and participatory process.

It is the ideal platform to explore how Europeans can lead a successful transition towards a new model of sovereign political Union, enhancing participative democracy, the rule of law, and sustainable development.

The Conference provides an opportunity to define and discuss concrete proposals for opening a constitutional process to develop a federal constitutional pact, addressing the challenges of our time and the needs of European citizens.

The Conference also serves as a platform to advance the concept that subsidiarity must be combined with increased democratic participation. It offers a chance to experiment with new forms of citizen engagement, drawing from consultative assemblies in some Member States, particularly in the context of constitutional changes.

To foster a genuine European public space, movements and parties must become transnational, with membership, funding, and policies raised to a borderless level.

Having all this in mind, the FC of the UEF believes

that during the Conference it will be possible and necessary to discuss how Europe can:

• Guarantee the pursuit of its values, interests, and citizens’ security in the international arena, promoting human rights, multilateralism, and international cooperation.
• Accelerate the development of an autonomous European defence as the basis for a robust foreign policy and greater global influence.
• Establish a truly European migration policy.
• Position Europe as a model for sustainable development and ecological/digital transition.
• Strengthen the Single Market, ensuring fair competition, harmonized taxes, and a level-playing field.
• Make the Recovery Plan permanent and complete the Economic and Monetary Union.
• Promote inclusion, non-discrimination, gender equality, social justice, and solidarity.
• Implement a mechanism to safeguard the rule of law, democracy, and fundamental rights across Member States.
• Define the foundations of a genuine European democracy, including abolishing unanimity in the Council, extending co-decision powers for Parliament, and promoting transnational movements and parties through a joint EU electoral constituency with transnational lists and the formalisation of the Spitzenkandidaten system.

The FC of the UEF is also persuaded

that in order to respond to citizens’ questions, concrete proposals for a new Treaty must emerge, even if some countries and some political forces might not immediately share this view. These reforms must be focused on:

• Creating fiscal capacity for the EU, enabling it to collect resources independently to implement policies aligned with the European political agenda and pursue fair taxation within the Single Market.
• Granting the EU new competences in areas such as macroeconomic policy, foreign and security policy, research, health, and training, in line with the subsidiarity principle.
• Reforming decision-making to provide the Union with autonomy in its new areas of competence, extending the ordinary legislative procedure with co-decision between Parliament and Council.
• Safeguarding democratic principles and the rule of law within the EU, particularly against potential illiberal tendencies in Member States.
• Addressing the question of ratifying EU Treaties by qualified majority, allowing a majority of countries to move forward with deeper integration while maintaining the unity of the EU but providing for different levels of participation.

The Federal Committee of the UEF calls

on the European Parliament to take the lead in promoting this agenda at the Conference, fostering political debate with citizens from a constituent perspective;

On the entire UEF organisation and in particular its national sections to commit to the success of the Conference and to build a broad alliance with political forces, civil society organisations, and citizens in support our federal, sovereign, and democratic Europe.