EU long-term budget: EP still fighting for a good agreement | News | European Parliament
, https://www.europarl.europa.eu/news/en/press-room/20200917IPR87313/
Do not jeopardise future-oriented EU programmes, say EP’s budget negotiators | News | European Parliament
, https://www.europarl.europa.eu/news/en/press-room/20200911IPR86907/
German Presidency outlines priorities to EP committees | News | European Parliament
, https://www.europarl.europa.eu/news/en/press-room/20200706IPR82739/
EU long-term budget deal must be improved for Parliament to accept it | News | European Parliament
In a resolution on the conclusions of the extraordinary European Council meeting of 17-21 July 2020, adopted by 465 votes against 150, with 67 abstentions, MEPs pay tribute to the victims of the coronavirus and to all the workers who have been fighting the pandemic. They underline that “people in the EU have a collective duty of solidarity.”
Positive step for recovery, inadequate in the long term
In the text, which serves as a mandate for the upcoming negotiations on the future EU financing and recovery, Parliament welcomes EU leaders’ acceptance of the recovery fund as proposed by Parliament in May, calling it a “historic move for the EU”. MEPs deplore however the “massive cuts to the grant components” and call for full democratic involvement of Parliament in the recovery instrument which “does not give a formal role to elected Members of the European Parliament”.
As for the long-term EU budget, they disapprove of the cuts made to future-oriented programmes and consider that they will “undermine the foundations of a sustainable and resilient recovery.” Flagship EU programmes for climate protection, digital transition, health, youth, culture, research or border management “are at risk of an immediate drop in funding from 2020 to 2021″, and that as of 2024, the “EU budget as a whole will be below 2020 levels, jeopardising the EU’s commitments and priorities.”
Parliament cannot accept a bad agreement
Parliament thus does not accept the European Council’s political agreement on the 2021-2027 MFF as it stands and “will not rubber-stamp a fait accompli”. MEPs are “prepared to withhold their consent” for the long-term EU budget, the Multiannual Financial Framework (MFF) until a satisfactory agreement is reached in the upcoming negotiations between Parliament and the Council, preferably by the end of October at the latest for a smooth start of the EU programmes from 2021.
In the case however that a new MFF would not be adopted on time, MEPs recall that Article 312(4) of the TFEU provides for the temporary extension of the ceiling of the last year of the present MFF (2020), and that this would be fully compatible with the recovery plan and the adoption of the new MFF programmes.
Rule of Law
Parliament “strongly regrets” that the European Council significantly weakened the efforts of the Commission and Parliament to uphold the rule of law, fundamental rights and democracy in the framework of the MFF and the recovery plan, recalling that the Rule of Law Regulation will be co-decided by Parliament.
New sources of EU revenue and repayment of EU-debt
MEPs reiterate that Parliament will not give its consent for the MFF without an agreement on the reform of the EU’s own resources system, including the introduction of a basket of new own resources by the end of the 2021-2027 MFF which is necessary to cover at least the costs related to the recovery plan.
They believe that the EU Heads of State and Government have failed to tackle the issue of the recovery instrument repayment plan and recall that without further cuts to key programmes or increasing the Member States’ contributions to the EU budget, new own resources is the only acceptable option to Parliament.
Mid-term revision indispensable
Parliament demands that a legally binding MFF mid-term revision enters into force by the end of 2024 at the latest and stresses that this revision must include the ceilings for the 2025-2027 period, the introduction of additional own resources and the implementation of the climate and biodiversity targets.
MEPs debate recovery fund, condemn major cuts to long-term EU budget | News | European Parliament
In the debate with Council and Commission Presidents Charles Michel and Ursula von der Leyen, the deal reached at the recent European Council meeting on the recovery fund was qualified as “historic” by many MEPs as for the first time, member states have agreed to issue €750 billion of joint debt. With cuts made to the long-term budget (multiannual financial framework, MFF) however, most were “not happy”.
“We are not ready to swallow the MFF pill”, said Manfred Weber (EPP). Also, S&D leader Iratxe García would not accept the cuts, “not at a time when we need to strengthen our strategic autonomy and reduce disparities between Member states”.
Many highlighted that the question of reimbursing the debt was not resolved. MEPs insisted that the burden must not fall on the citizens, and that a robust system of new own resources including a digital tax or levies on carbon for the repayment must be guaranteed, with a binding calendar. Furthermore, many underlined that “the EU is not a cash machine for national budgets”, deploring that “frugal” countries do not want to pay the price for benefiting from the single market, and insisting that no funds should go to “pseudo-democratic” governments which do not respect the rule of law and EU values.
Others were more sceptical about new own resources generating enough to repay all the debt and warned that the crisis should not be used as a pretext for further EU integration. Most however stressed that Parliament is ready for swift negotiations to make the necessary improvements to the Council’s common position.
MEPs now vote on a resolution to wind up the debate, which will serve as a mandate for the upcoming negotiations with the German Presidency of the Council of the EU. The result of the final vote will be announced in plenary today at 17.30.
Click on links to view individual statements
Charles Michel, President of the European Council
Ursula von der Leyen, President of the European Commission
Robert Zīle (ECR, LV), Martin Schirdewan (GUE/NGL, DE)
Closing remarks by Charles Michel, President of the European Council
EU summit compromise: positive step for recovery, inadequate in the long-term | News | European Parliament
After five days of intense discussions, the Heads of State and Government reached a political compromise. Parliament’s negotiating team on the Multiannual Financial Framework (MFF) and Own Resources (OR) welcomes the fact that at last a common position has been achieved, and that the newly created Recovery Instrument (Next Generation EU) is financed with a borrowing of EUR 750 billion. But Parliament remains critical on some essential aspects of the compromise, particularly on the long-term perspective.
“The Recovery Instrument is an important step towards a new ambition for the Union: greener, more competitive and digital. This massive borrowing is an historical moment for the European Union, and we should not disregard what just happened.” However we regret that the Member States decided to entirely abandon the ‘bridge solution’, whose objective was precisely to provide immediate crisis response to the citizens, following the Covid-19 outbreak. In a context where the virus in on the rise again, citizens need certainty. Parliament will continue working hard to ensure that the recovery starts without delays. Furthermore, democratic oversight must be substantially increased: Parliament, as one arm of the budgetary authority will fight to be fully involved in the establishment and implementation of the Recovery Instrument”, said the EP’s negotiators on Tuesday.
“The picture is much more negative when it comes to the EU long-term budget (the MFF). Parliament cannot accept the proposed record low ceilings as they mean renouncing to the EU’s long-term objectives and strategic autonomy, while citizens ask for more. More European solidarity, more European action in public health, in research and digitalisation, youth, and in the historical fight against climate change. Key programmes to reach these objectives have been considerably shrunk, and lost most of their top-ups under Next Generation EU. We will strive to secure improvements, including higher amounts, on future-oriented MFF programmes like Horizon, InvestEU, LIFE, Erasmus+. And if our conditions are not sufficiently met we will adopt the programmes on the basis of the existing MFF, as foreseen by the Treaty”, warned the members of the EP’s negotiating team.
“The compromise is also a flagrant missed opportunity when it comes to modernising the revenue side, making it fairer and more transparent. The EU is now allowed to borrow funds but there is no certainty on how the debt will be repaid. Parliament has been clear: the recovery should not reduce investment capacities nor harm the national taxpayer. This is why new genuine own resources are the solution to repay the common debt, but the plastic-based contribution will not do the trick alone! We recall our strict demand to that respect: a binding commitment for the introduction of additional own resources as soon as 2021, and still in the course of the MFF 2021-2027. Furthermore, despite the United Kingdom leaving the EU, the insistence on the rebates has been extremely tough and results in a big step back for the European project: instead of being abolished, rebates are kept and even increased.
Additionally, Parliament remains firmly against watering down the mechanism to reduce or suspend EU funding if a Member State disrespects the rule of law, and this issue should not be put off but addressed now. Parliament has stood ready to enter into negotiations under co-decision to continue building a Europe of fundamental rights.
Parliament remains ready to immediately enter negotiations in order to achieve a better agreement for Europe”, the MEPs added.
The EP’s negotiating team for the next long-term EU budget and Own Resources reform
Johan Van Overtveldt (ECR, BE), Chair of the Committee on Budgets
Jan Olbrycht (EPP, PL), MFF co-rapporteur
Margarida Marques (S&D, PT), MFF co-rapporteur
José Manuel Fernandes (EPP, PT), Own Resources co-rapporteur
Valérie Hayer (RENEW, FR), Own Resources co-rapporteur
Rasmus Andresen (Greens/EFA, DE)
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Next steps
The Council will now finalise its mandate to enter negotiations with Parliament, which will have a final say before the 2021-2027 budget can enter into force. The current multiannual budget runs out on 31 December 2020.
Parliament will set out its conditions and take up negotiations with the German Presidency of the Council of the EU as soon as possible.