EU budget talks: Council rejects Parliament’s breakthrough proposal
EP’s negotiators made a breakthrough proposal on Wednesday on the critical issue of how to count the costs of common debt in the next long-term EU budget. Council has rejected it blindly.
At the 10th trilateral dialogue, Parliament and Council representatives reviewed all pending issues in the negotiation. On the question of the top-ups for the 15 flagship programmes, Council further hardened it stance while Parliament proposed a series of openings, said the members of the Parliament’s negotiating team on the Multiannual Financial Framework (MFF) and Own Resources (OR)
“Despite being largely left out of the decision to set up the EU Recovery instrument, Parliament has agreed that the costs of the new debt will be borne by the Union budget.
However, Parliament believes that such costs should be counted above the stringent ceilings of the Multiannual Financial Framework (MFF). Otherwise, they enter in competition with regular Union programmes. This is due to the top-down approach of the Council, which consistently sets overall MFF ceilings at a level closer and closer to 1% of the EU’s GNI. When repayments of the principal of recovery debt kick in after 2027 (more than 15 billion euros per year), this would be the end of the Union budget as we know it”, EP’s budget negotiators said.
“In 2021-2027, counting NGEU (‘Next Generation EU’ recovery instrument) costs above the ceilings would have released 12.9 billion euros within the ceilings for topping up flagship expenditure programmes, as requested by Parliament.
Tonight, we offered the Council to count the NGEU costs above the ceilings, but without redistributing the 12.9 billion euros to the flagship programmes. This would leave a significant unallocated margin that would be very welcome to finance unforeseen needs in the coming years, given the troubled times we are going through. Council would retain full control over whether this margin is used or not for additional expenditure in the future”, the MEPs added.
“The Council has blindly refused to consider this possible breakthrough, arguing once again that this was touching a ‘red line’ set by the European Council summit of July 2020. Parliament has a negotiating mandate; Council has a series of red lines.
Latest News from
European arrest warrant: Council adopts conclusions on current challenges and the way forward02/12/2020 15:25:00
The Council yesterday adopted conclusions on the current challenges and the way forward regarding the European arrest warrant and extradition procedures.
Commission welcomes the political agreement on the Common Provisions Regulation for shared management funds02/12/2020 14:33:00
The Commission welcomes the political agreement reached recently (30 November 2020) between the European Parliament and EU Member States in the Council on the Common Provisions Regulation (CPR) for shared management funds, including for the EU cohesion policy funds.
Climate change: the EU needs to be better prepared so it can better adapt02/12/2020 13:25:00
The upcoming EU adaptation strategy must give impetus to building climate-resilient societies, say Environment MEPs in a new resolution on adapting to climate change.
New EU rules: digitalisation to improve access to justice02/12/2020 12:38:00
Cross-border videoconferencing and safer and easier document exchange: learn how new EU rules for digitalising justice will benefit people and firms.
MEPs approve deal on tap water and demand that EU water legislation be respected02/12/2020 11:33:00
The Environment Committee yesterday approved the deal on the drinking water directive and adopted a resolution demanding EU legislation on water be correctly implemented.
Commission disburses €8.5 billion under SURE to five Member States02/12/2020 10:38:00
The European Commission has disbursed €8.5 billion in the third instalment of financial support to five Member States under the SURE instrument.
Ukraine: EU report notes continued implementation of the reform agenda though challenges remain02/12/2020 09:25:00
Ahead of the informal meeting of the members of the EU-Ukraine Association Council on 8 December, the European Union yesterday published its annual Association Implementation Report on Ukraine.
EIB Group cooperates with Hypo Vorarlberg to support climate action investments02/12/2020 08:20:00
The EIB Group, consisting of the European Investment Bank (EIB) and the European Investment Fund (EIF), has provided a mezzanine guarantee on a €330 million portfolio of mainly Austrian loans to SMEs and mid-caps, originated by Hypo Vorarlberg Bank AG.
Debt relief efforts for African countries: Council approves conclusions01/12/2020 16:33:00
The EU is committed to furthering international debt relief efforts for African countries.