Mff Agreement July 2020

At the start of the European Council, the President of the European Parliament, David Sassoli, reminded EU Heads of State and Government of the Parliament`s main priorities. In particular, he stressed that the Parliament “expects the establishment of a package of own resources with the commitment that they will enter into force as soon as possible and at the latest by 2023”. As the EP negotiators on the MFF package stressed in a common position after the Political Agreement of the European Council: “New real own resources are the solution to repay the common debt, but the plastic-based contribution alone will not be enough! We recall our strict demand in this regard: a binding obligation to introduce additional own resources from 2021 and during the MFF 2021-2027. » The political agreement reached at the level of the European Council of 21 However, the process of adopting the EU`s long-term budget for the period 2021-2027 is not complete. [iii] This is only the starting point for negotiations between the two arms of the budgetary authority, the Parliament and the Council. Under Article 312 of the Treaty on the Functioning of the European Union, the regulation establishing the MFF is adopted unanimously by the Council after receiving the consent of the European Parliament. Charles Michel expressly opposed a reintroduction proposed by the Commission in its revised proposal of May 2020 on the MFF; Therefore, funding in this area could not be sufficient to achieve the EU`s stated goal of “digital sovereignty”. On political priorities, President Sassoli reaffirmed Parliament`s support for an MFF with sufficient funding for convergence policies and adequate resources to achieve the core priorities: the Green Deal, digitalisation and resilience. 30% will be committed by 2023, with the unemployment criterion replaced by a criterion based on the decline in GDP in 2020, and in 2021 the next generation will provide the Union with the necessary means to meet the challenges of the COVID-19 pandemic. The agreement will allow the Commission to borrow up to €750 billion on the markets.

This appropriation may be allocated to open loans and expenditure made through the MFF programmes. Capital raised on the financial markets will be repaid until 2058. Another change to Charles Michel`s negotiating box concerns the conditionality of the rule of law. Although with a more vague wording than proposed, the principle of the “rule of law” was accepted. The political agreement states that “a general regime of conditionality is put in place to address clear general shortcomings in the good governance of Member States` authorities with regard to respect for the rule of law where this is necessary to protect the proper implementation of the EU budget, including NGOs, and the financial interests of the Union`. Intense negotiations between Parliament and the Council are therefore to be expected. Although the total amount is not the main controversial issue, Parliament will seek to make concessions on issues such as the introduction of a mid-term review of the MFF and an increase in the resources allocated to its priority policies, as was the case during the negotiations on the MFF 2014-2020 (e.g. B with Erasmus). Parliament`s negotiating team has already indicated that it “will strive to secure improvements, including higher amounts, for forward-looking MFF programmes such as Horizon, InvestEU, LIFE and Erasmus+”.

Some group chair presidents have also already stressed that they will strive to “change the areas of the MFF, the rule of law and own resources”. . . .

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