Debate contributions by Eero HEINÄLUOMA

Mr President, this week marks five years since the European Parliament adopted the historic decision on the conditionality mechanism. It was an important decision, as for the first time access to EU funds was tied to the rule of law. Experience in recent years shows that respect for democracy and the rule of law are also not self-evident within the Union. The same goes for today's debate. Unfortunately, Hungary continues to undermine the rule of law and curtail civil rights. It is high time that the Commission reacted again and suspended all EU aid payments. The EU is not just about free trade and the economy. We are also a community of values in which democracy, equality, human rights and the rule of law must be realised. These principles must be adhered to.

Mr President, I would like to begin by thanking the Court of Auditors and President Murphy for their important work. With an unprecedented volume of EU funds in circulation, the importance of independent auditing is highlighted. Congratulations on a good annual report that gives us a lot to think about. The 2024 annual report highlights a very serious problem, namely that controls in the Member States do not work. We continue to find errors in EU budget expenditure that national authorities should have found in their own audits. For the Recovery Instrument, Member States reported only five cases of suspected fraud last year, while the European Public Prosecutor’s Office had more than 300 cases pending, worth almost EUR 3 billion. The misuse of agricultural subsidies in Greece and the directing of EU subsidies to decision-makers in Hungary show that corruption is a real problem. There are therefore serious shortcomings in the recovery instrument, which serves as a model for the seven-year budget. We are not sure where the money will end up. Citizens must be able to rely on the correct use of EU funds. The Commission's proposal to control a budget of EUR 2 000 billion is to leave control in the hands of the national authorities. And the question is whether, after this annual report, there is no longer any possibility of doing so. I look forward to the Commission's conclusions on the annual report that we have now heard.

Madam President, a more competitive Europe means investing in the digital and climate transitions and fostering more industrial production in Europe. It means also investing for quality jobs and strategic autonomy. A competitive EU industry also needs a strong focus on research and innovation to develop new technologies and to bring new solutions to the market. More resources for Horizon Europe and CEF are really needed. It is more important than ever to increase investments into renewable and clean energy, ambitious electrification, grids and cross-border infrastructure. The 2026 budget must respond also to the economic impact of the ongoing geopolitical instability. Especially the EU's Eastern border regions, which have been particularly affected by the suspension of cross-border trade as a consequence of Russia's brutal war of aggression against Ukraine.

Mr President, the European Union is at the most dangerous time in its history. War is a reality in Europe. Russia’s unjustified invasion of Ukraine continues for the fourth year. Russia's aggressive actions are increasingly spreading across Europe. Our airspace is repeatedly violated. Our flight connections are being disrupted. Drones are a reality, especially on the EU's eastern border. The Commission and President of the Commission, Ursula von der Leyen, deserve great recognition for the rapid response to the rising drone threat. A drone wall is indeed needed, and the biggest investments should be made where the risk is greatest: the EU's eastern border. Now we need unity and solidarity, not internal politics. Let us act so that future generations are proud of how current decision-makers defended the EU's sovereignty and ability to act, Ukraine's sovereignty and the freedom of peoples.

Mr President, dear colleagues, with an effective paid tax much below 15 %, digital platforms do not pay their fair share in the European Union, despite the profits being made here. This is totally unacceptable. Try to explain this to your local bakery, entrepreneur or teacher. People and companies who pay much more than the big technical giants. We have tried to tackle this multilaterally. However, multilateral solutions seem to be only dreams these days. Therefore, in today's new geopolitical reality, the European Commission should step up and push again for a European Union digital service tax. In a world where our main trade partner threatens the Union, its citizens, its farmers, its workers and its factories with 50 % tariffs on goods, this is the only fair response from our side. The Union and its citizens should stop being the financial milk cow of foreign digital platforms. It's time to act.

Mr President, Europe has learned a great deal from the importance of security and defence. First, Russia rejected the OSCE documents it had signed and all its previous commitments and attacked its neighbours at the border. In violation of international law, Russia announced the annexation of Ukraine's independent and sovereign bordering territories. This was, of course, an attempt to replicate the 2014 pattern of the illegal annexation of Crimea. Then the new US administration has made it clear that its commitment to Europe is not absolute, but conditional and relative. It is time for Europe to grow up. It is time for them to take real responsibility for their own defence. At the upcoming NATO summit, EU countries must deliver a unified message: We fulfill our own defense obligations without compromising. We hope that the United States will remain ready for cooperation and presence in Europe in the future. European defence and support for Ukraine are in our common interest. That is why every EU country must take our defence commitments seriously. We must insist that all member states meet the minimum standards, both in defence and in support of Ukraine. Now the burden of securing Europe is very unevenly distributed. There are countries that have spent 4% of their GDP on defence and 2% of their GDP on helping Ukraine. At the same time, there are countries whose defence spending barely reaches one per cent and Ukraine's support one tenth. It's time to take the defense seriously. This must be our message in The Hague.

Mr President, five years ago, the European and global economy was threatened with a total halt. Corona had hit our societies with a force that had never been seen before. Strong action was needed and the EU Recovery Instrument responded to this need. However, five years after the stimulus decision, we are still in a situation where more than half of the money is unused. The transition to renewable energy and the digital society has accelerated, but there are clearly significant shortcomings in our work, as demonstrated by the European Court of Auditors. When money is still unspent, there is also a need to critically assess whether the support package was initially correctly dimensioned and designed. At the same time, there is a need to develop Member States' own administrations and activities so that they can receive support from the Union in a transparent manner for EU citizens in general.

Mr President, Commissioner, colleagues, I also would like to thank our rapporteur and the shadows for excellent cooperation in preparing this report. Combating fraud is about protecting the EU budget. Equally much, it is about protecting European citizens and businesses. Through European cooperation, we have managed to combat trade in faulty protection equipment during the pandemic, prevented unsafe toys from reaching our children and hindered dangerous food products from ending up on our plates. Together, we are able to better ensure that EU financial support benefits businesses that live up to our common rules and objectives, instead of those undermining European policies of fair competition on the single market. To be successful, however, we need all of our society to participate. A zero-tolerance culture against fraud begins with public authorities, including national governments, leading by example and condemning fraud and corruption wherever they occur. We need an open democratic society with media and civil society free from political pressure or attempts to restrict their participation in public dialogue. Here, the Commission has a key responsibility in ensuring that our safeguards are robust enough to meet a growing volume of EU funds and an ever more challenging fraud landscape, as our rapporteur told us. Reality shows the need for strengthened safeguards for protecting the EU budget against misuse, be it fraud or violations of the rule of law, not least in view of the upcoming MFF. Ultimately, we need to ensure that every euro is spent to the benefit of European citizens and businesses.

Mr President, the lack of a real internal market for financial services equals a tariff of more than 100 %, as calculated by the IMF. This is a tariff we Europeans put on ourselves. It makes the EU citizens remain champions in sticking to savings with low returns. To turn this around, we need three main changes: firstly, CMU, SIU, the name does not matter. What matters are real structural changes. We cannot stick to the status quo out of fear for change. Structural deficiencies in the system need to be addressed properly and not paid off by promising tax incentives. Secondly, to increase trust in the system, let's stop producing underperforming products, let's stop selling promo talks for advice, and let's stop charging unsustainable inducements. Finally, more trust is needed and there is also room for risk‑taking for consumers if there is transparency and financial literacy. Only if we make these changes, the SIU can become a success and turn the EU savers into EU investors.

Mr President, for ITRE, a more competitive Europe means investing in the green digital and climate transition and fostering more industrial production in Europe for quality jobs and strategic autonomy. It means investing in resilient digital and energy infrastructure, green steel chips, ambitious electrification, net-zero solutions, grids, interconnectors and energy storage. A competitive EU industry also needs a strong focus on research and innovation to develop cutting-edge technologies and to bring new developments to the market. We need to urgently close the innovation gap with our global competitors. Parliament is ready to send a strong message by accepting this proposal. The EU should increase research and innovation investment to 3 % of GDP. The 2026 budget should also help alleviate the economic and social hardship faced by the EU's eastern border regions, which have been particularly affected by economic losses and the suspension of cross-border mobility as a consequence of Russia's war of aggression against Ukraine.

Mr President, it is now, if ever, important for Europeans to come together and defend their own values. Russia's barbaric invasion of Ukraine forces us to invest in security. The response to the new US administration's policy, on the other hand, also requires strengthening Europe's own capabilities. The Commission's White Paper on defence is only the beginning of the necessary conclusions. Defence cooperation must go far beyond what the Commission is now proposing. When we put more money into defence, we need to make sure that this money brings security also financially. The European defence industry needs stable procurement programmes well into the future. EU money must create skills and jobs in Europe, not across the oceans. Buy European.

Mr President, the new US administration is once again turning to protectionism and the use of trade policy as a political weapon. In these circumstances, it is of particular importance that the EU acts as a defender of free trade and opens up new opportunities for fair trade agreements that recognise environmental and social responsibility. If implemented, the EU-Mercosur agreement would create the world's largest free trade area and open up a market of nearly 300 million customers for European companies. However, free trade requires fair rules – not only for the environment, but also for workers’ and consumers’ rights. The European Parliament must now ensure that compliance with the Paris Agreement on climate change is included in the agreement. It must be considered that the agreement is fair to European farmers and workers. It is only after this report that Parliament will be able to give its consent to this agreement.

Mr President, Russia's barbaric invasion of Ukraine is causing great suffering to millions of Ukrainians. At the same time, Russia's actions create a large economic, social and also security bill, especially for the residents of the EU's eastern border and the countries on the eastern border. Today's joint parliamentary debate recognises the development needs of this eastern border and sends a strong signal that we are a solidarity community – we care about each other. When the UK left the EU, the EU set up a €5 billion Brexit facility. It compensated the countries most affected by Britain's departure. The COVID-19 crisis, on the other hand, spawned a gigantic aid instrument worth EUR 750 billion. The question now is whether the Union will also hear from its Eastern Member States when they face the full implications of Russia's war of aggression. Improving border management at the eastern border is an urgent matter. A specific assistance instrument, such as the Brexit instrument, is needed for the MFF to support countries and border regions along the EU’s eastern border.

Mr President, we want to make Europe more competitive. In addition to economic competitiveness, social competitiveness must be fostered: well-being of societies and people. There is no sustainable competitiveness without natural boundaries and human well-being. The United States is dismantling environmental standards, withdrawing from the Paris Agreement on climate change, and is likely to be disengaged from international cooperation. It may be the American way, but it's not our way. The regulation needs to be simplified. We need to hear from companies here. It is justified to reduce reporting obligations for companies, but this must be done without lowering standards, without destroying nature and without undermining the rights of consumers and workers. The Commission is now required to be able to build a true sustainable competitiveness that delivers on European values and brings jobs to Europe, to every Member State. Competitiveness that respects our egalitarian way of life.

Madam President, despite the hurray mood in parts of the crypto world since the election of Trump, it's important to look at the facts. I see at least three reasons to remain concerned about this bubble. Firstly, despite all the measures adopted, crypto seems to remain the favourite tool for sanctions evaders and gangsters, including cocaine cartels, North Korean hackers, Iranian and Russian spies and fentanyl smugglers. If we want to tackle these problems seriously, let's hit them where it hurts. Secondly, as well outlined by the ECB, the recent rise in Bitcoin value benefits mainly a happy few at the expense of the many. From an investor protection perspective, this is far from optimal. Finally, in times of high energy prices and energy scarcity, investing in infrastructure to mine bitcoins is wasting energy. Therefore, it is good to have this debate. We indeed need global standards for crypto to tackle these challenges, and the EU should take the lead as MiCA and the AML package can give some inspiration. But we should go further and we need a MiCA 2 to close remaining regulatory loopholes, for example, around NFTs and decentralised finance applications. We count, therefore, on this new commission to pick up this role and push this agenda forward.

Mr President, there are now far too many breakages of vital cables in the Baltic Sea for all of this to be regarded as coincidence. The EU can only succeed if it contributes to ensuring uninterrupted cross-border connectivity for telecommunications and electricity. Therefore, repeated breaches of the Baltic cables are a matter for the Union as a whole. Baltic Sea countries have already taken steps to improve controls. The increased presence of European NATO allies in the Baltic Sea is to be welcomed. The environmental risks of the Russian shadow fleet need to be addressed. The EU must approach the flag states of ships and require compliance with safety rules and normal shipping practices. There is now a need to increase the number of sanctioned vessels. The oil price cap must be lowered. Contribute to the practical implementation of collateral checks. Strong action is expected from the Commission.

Mr President, the European Union is a community of shared values. And these values must be respected not only by our own Member States, but also by our partners around the world. Countries that want to cooperate with the Union must commit to respecting fundamental values like democracy and human rights, which include also respect for the political opposition. The developments in Kyrgyzstan are concerning. Efforts to limit the participation of opposition parties in elections are unacceptable and do not belong in a democratic society. I am especially concerned about the detention of the opposition leader and chair of the Social Democratic Party, Temirlan Sultanbekov. I have the honour to know Temirlan personally, and I know that he is fully committed to democracy and to serving the Kyrgyz people. So he must be immediately released, and Kyrgyzstan must live up to its commitments in the enhanced partnership and cooperation agreement signed with the European Union this summer.

Mr President, European thinking includes workers' rights and also cooperation between the social partners. Let us uphold these principles also in the current parliamentary term. Respect for workers' organisational rights, including the right to strike, are also part of European thinking. At the same time, we know that a strike is always a last-resort form of influence. Tesla's Elon Musk operations in Sweden are completely intolerable. It shows the difference between American business and European business. Opportunities must be created for joint action, and it will also be accompanied by a proposal to strengthen the role of European Works Councils to be discussed tomorrow. Please vote boldly in favour of this good proposal. It is part of the European sustainable model and competitiveness.

Mr President, the Baltic Sea is the inland sea of Europe. We have a responsibility for the state of the Baltic Sea and, in particular, for its safety. The main trade routes in Northern Europe pass through the Baltic Sea. Important telecommunications connections and gas connections important for our energy security also run on the bottom of the Baltic Sea. When these connections are repeatedly damaged, the idea comes to mind that this is not an accident, but a deliberate action. The countries bordering the Baltic Sea need the opportunity to investigate possible crimes related to shipping. The Commission must therefore examine the agreements on the law of the sea, their interpretation and the need for their development. We need to act quickly now, and this is what the new Commission has to do. (The speaker refuses to answer the blue card questions that Mr Rzońca and Mr Gražulis wished to put.)

Mr President, Mr Niinistö, thank you for your valuable work in strengthening the Union's preparedness. Your extensive experience and judgement are reflected in the balanced presentations of the report. The European Union's readiness is not only about money, iron and legislation, but above all about a paradigm shift. Thinking in which citizens themselves take responsibility and take security and preparedness seriously, as President Niinistö has often said. Then there are our current treaties, the Treaties. What are they obliging us to do in terms of security? The Union has a mutual assistance clause in its Treaties. Do we have procedures in place for the clause? What will we do in practice if a Member State is subjected to an external attack? There really is no time for silence. Here's a job site for the new incoming Defence Commissioner. This is one of the first issues to which the Union must give an answer.

Mr President, Madam Commissioner, next week it's 1 000 days since the brutal full-scale invasion from Russia into Ukraine. As the European Union, we stand behind Ukraine from day one. The EU adopted several sanctions packages against the aggressor and we tackled also many oligarchs. But, as we have heard, there are still loopholes and these need to be closed urgently. Indeed, yesterday it was revealed that the US authorities are inquiring into problematic recent transactions by Swiss bank UBS. Only a few weeks ago, Russia escaped the global AML blacklist thanks to support of countries like North Korea and Saudi Arabia. This is unacceptable. Following the ambitious AML package, the Union must continue to take the lead and list Russia as a high-risk third country now. If we want to stop this war, we have to close the funding channels. We have to stop financial institutions helping to launder money and financing, in this way, various kind of terrorism. Last but not least, may I express my appreciation to you, Commissioner McGuinness. You have done excellent work during last mandate. You have been a creator of the new AML package. You have always appreciated the cooperation with Parliament, and you have helped to get a deal here during the last mandate. Money laundering is still a problem and we should not wait the USA to solve it here in Europe. So let's be ambitious again and let's be also practical. Let's be bold against the aggressors. Let's blacklist Russia. This is what my group expects from this Commission and from the next Commission.

Mr President, first of all, thanks to President Murphy, you are doing valuable work at the Court of Auditors, the importance of which is emphasised in circumstances where there is a shortage of money and resources. The EU budget is a key instrument for achieving our common objectives. However, citizens are increasingly asking – quite rightly – how to use European money responsibly. The annual report is worrying in many respects. Mistakes have continued to grow. In the area of cohesion, they are already falling by 10%. Although mistakes do not automatically mean misuse of money, the situation is in no way acceptable. In particular, it is worrying that no error rate is foreseen for the use of funds from the Recovery Instrument to tackle the economic crisis caused by COVID-19. The focus is now on the Commission and the new Commission. The Court of Auditors' report calls for changes in the control of the use of funds, particularly for funds outside the EU budget.

Mr President, the steel industry is the cornerstone of European industry. Without steel, there is no construction, there is no automotive industry, there is no defence, and there is no strategic autonomy. And without the transition to carbon-free steel, Europe will not see the success of the green transition either. We have a state-of-the-art steel industry with long-term plans to produce steel without burning coal. However, I would remind you that we also need extensive emission-free energy production for fossil-free steel. When we set high environmental and emission standards for our own steel industry, we cannot accept the spillover of steel impregnated with state subsidies that are ignorant of climate requirements into Europe. Urgent action is now required from the Commission to enable the European high-quality, fossil-free steel industry to fulfil its role in fulfilling our well-being and security.

Mr President, the Hungarian Government's clear disregard for other EU countries and their security is another link to the growing concern about what is happening in a country that is important to us, Hungary. Violations of the rule of law appear to continue, the Union's foreign policy decisions are being blocked, support for Ukraine is being made more difficult and, most recently, rapid Schengen visas for Russian and Belarusian citizens. This is happening while Russia continues its war of aggression against Ukraine, targeting EU Member States with hybrid operations, as we have also seen on the EU’s eastern border. Free movement is one of the great achievements of European cooperation. Every day it benefits hundreds of thousands, millions of citizens and also European business. But freedom of movement also requires common rules, rules that are the responsibility of each Member State and that give rise to our common security. The fact is that the Hungarian Government has not taken into account the common security interests of the EU when adopting its new visa policy. This year's many strange events are accompanied by suspicions of Russian influence and destabilisation of organised societies. There are break-ins near important targets, drone flights and outright acts of violence. The risks have not decreased, but increased. Therefore, the core issue is that Hungary must carry out security assessments when issuing visas. It is not a question of numbers, it is a question of assessing the risks and of other Member States being able to rely on the fact that citizens coming through Hungary are checked and do not pose a threat to citizens of other EU countries.