The Socialists and Democrats (S&D) group launched a robust condemnation of European Commission plans to condition future EU budget disbursements on member states implementing structural reforms, according to Euractiv.
In a letter to Commission President Ursula von der Leyen dated Tuesday and obtained by Euractiv, S&D leader Iratxe García Pérez and senior colleagues declared they “will strongly oppose the possibility for national [budget] plans to be underpinned by a ‘payment against reforms’ rule.”
The group warned this approach would undermine social cohesion and democratic accountability within the bloc. The dispute centres on the forthcoming Multiannual Financial Framework (MFF), where the Commission seeks tighter control over its €1.2 trillion budget.
Brussels proposes releasing funds only after nations enact competitiveness reforms, a mechanism initially rejected by the centre-right European People’s Party (EPP), Parliament’s largest group, before it reversed its position.
S&D, the assembly’s second-largest faction, now positions itself as the primary bulwark against the scheme, asserting its support remains essential for budget approval despite EPP chief Manfred Weber’s claims of a national-oriented majority.
The Socialists simultaneously demanded ironclad protection for the €142 billion European Social Fund, opposing any diversion of resources toward defence spending. Their letter stressed that “the urgency of the political situation does not allow useless political games,” reminding von der Leyen that S&D support proved decisive in securing her reelection.
