Karas: Proposal for the EU budget “suitable basis for discussion”

Aug 7, 2025 - 15:00
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Karas: Proposal for the EU budget “suitable basis for discussion”

Vienna/Alpbach – The new president of the European Forum Alpbach (EFA), Othmar Karas, considers the EU Commission’s proposal for the next multiannual budget as a “suitable basis for discussion,” as he told APA. What he does not yet see is how all the urgently needed investments could be initiated. “The budget is not higher, when you deduct the repayments, than it was before 2019, but everything that has happened between 2019 and this year demands more activity.”

Not everything can be done through budgets, said the former First Vice-President of the European Parliament. Initiatives are also needed and the “unlocking of the treasure of private capital, which unfortunately is still spent far too much outside of Europe.” “There is still much to negotiate here so that we can achieve the goals we have set and given ourselves. Because the budget is the working program cast in numbers. And it is a question of credibility and political action ability that we negotiate the coverage of financing for what we demand and what we decide, and not everyone submits their letters to Santa Claus.”

If one wants to save costs, one must cooperate more, emphasized Karas. “That is actually the purpose and aim of the European Union.”

“Trade conflict avoided for August 1”

When asked about the recent agreement between the EU and the USA regarding tariffs, Karas stated that he considers a rules-based world trade to be a matter of justice and fairness. “And therefore, I consider international trade agreements and a strong WTO to be important.”

He does not yet know the deal in detail. The positive aspect, however, is that “a trade conflict has been avoided for August 1.” “But it is also a call for us that the European Union must be strong and united on an equal footing. Without unity, without strength, without European agreement, we are weakened in the new geopolitical power distribution.” This is also a political question: “How strong is the Commission? Can it implement what it negotiates? If you will: Are we strong enough that others fear us?” This also applies to security issues.

“That Mr. Trump currently places self-interest over community responsibility has opened our eyes. But actually, the future of the European Union should be shaped as we do in the forum: interdisciplinary, intergenerational, and solution-seeking. We finally need a common business basis again, because only that creates trust,” said Karas. This is the model for all questions and crises of the time.

“Made dependent out of convenience”

“We know that Mr. Trump acts this way. But that the world is reorganizing, we should have already understood. We have made ourselves dependent out of convenience and naivety. And then we wonder about a lack of sovereignty,” criticized the forum president.

“We have made ourselves dependent on Russia in energy policy and have been vulnerable, not only because of supply chains but also because of prices. We have made ourselves dependent on fossil energy sources, which complicates the European Union’s achievement of climate goals. We have made ourselves dependent in security policy on decisions in Washington and on NATO deployment. We have made ourselves dependent on medical products from China, and we have made ourselves dependent on technologies from telecommunications to batteries and green technologies and digitalization and AI from China and America and perhaps also from other Asian states.”

If one is dependent, then one is vulnerable, and if one is vulnerable, then one is not sovereign. “That means we must develop European sovereignty in all matters. We must shake off our dependencies,” demanded Karas. “But that also means for Austria, if Europe is not sovereign, then as a member state, one is not sovereign either. And if one is not sovereign as a member state, it is better to work on a strong European Union to create a community sovereignty.” This ultimately strengthens one’s own population, one’s own economy, and competitiveness.

Focus on security, energy, and capital market union

This year’s general theme of the Alpbach Forum – “Recharge Europe” – also means for him to think through Europe and develop a new spirit of departure. “And to think about how we can make Europe better, how we can deepen it, how we can expand it” and in fact “provide a united European response to all the challenges of our time.” Therefore, the topic has also been very focused down to three key areas: security union, energy union, and capital market union.

As special qualities of the forum, the former long-time ÖVP-EU member of parliament emphasized that it is interdisciplinary and intergenerational. However, Alpbach itself is also essential: “The place slows down,” said Karas. “We also rely on the fact that it is probably easier to talk and listen to each other in Alpbach and at the European Forum Alpbach than in a meeting room in Brussels, Paris, or elsewhere.”

It is important to be “rooted” – “rooted in our homeland, rooted in our regions, rooted in our communities, yes, those who are not rooted cannot embark.” Not for nothing does the forum also begin with a focus on the Euregio Tyrol-South Tyrol-Trentino. “Europe also begins in our communities and in the regions, but all the challenges of the regions, the communities, all the worries and problems that we have on our table today need a common European response. No one can solve this alone, and generating this sense of ‘we’ is crucial.” (07.08.2025)