Next multiannual financial framework and recovery package: Council moves to finalise adoption
The EU institutions are finalising the procedures for the adoption of the multiannual financial framework for 2021-2027 and the recovery package. The Council yesterday adopted a set of decisions on legislative acts forming part of the package and laying down the EU budgetary framework for the coming years.
The decisions follow the European Council meeting on 10-11 December, as a result of which all member states could support the package.
New own resources decision
The legislative acts adopted yesterday include the own resources decision, which defines how the EU budget is financed. The decision needs to be approved by all 27 EU member states in accordance with their constitutional requirements to enter into force. Its adoption yesterday allows the ratification process to start.
Once approved, the decision will raise the maximum amount of resources that can be called from member states in any given year to finance EU expenditure – the so-called own resources ceiling – from 1.20% to 1.40% of the sum of the EU-27 Gross National Income. This reflects the integration of the European Development Fund into the EU budget and addresses the withdrawal of the UK, a former net contributor to the EU budget.
The Commission will also be authorised, on an exceptional basis, to borrow temporarily up to €750 billion in 2018 prices on the capital markets to address the consequences of the COVID19 crisis. In parallel, the own resources ceiling will be exceptionally and temporarily increased by a further 0.6 percentage points to cover all liabilities of the EU resulting from this borrowing until all the borrowed funds have been repaid.
The decision also simplifies the calculation of the EU own resource based on value added tax and introduces a new EU own resource from 1 January 2021 – a contribution from member states based on non-recycled plastic packaging waste.
European Union Recovery Instrument
The Council has also adopted a regulation establishing the European Union Recovery Instrument.
The regulation identifies the COVID-19 recovery measures to be financed from the €750 billion of borrowed funds, defines the time limits for the use of the funds and determines their allocation to different EU programmes. It establishes that €390 billion of the funds will be spent for non-repayable support, repayable support through financial instruments or for provisioning for budgetary guarantees and related expenditure. €360 billion will be used to provide loans to member states.
New budget conditionality mechanism
The Council yesterday adopted its position at first reading on the draft regulation on a general regime of conditionality for the protection of the Union budget. This paves the way for the European Parliament's final vote on the regulation on Wednesday.
The regulation allows to protect the EU budget where it is established that breaches of the principles of the rule of law in a member state affect or seriously risk affecting the sound financial management of the EU budget or the protection of the financial interests of the EU in a sufficiently direct way.
- Regulation on a general regime of conditionality for the protection of the Union budget
- Statement of the Council's reasons
Finalising the next multiannual financial framework
The Council yesterday decided to forward the regulation laying down the multiannual financial framework for the years 2021-2027 to the European Parliament for its consent. The EP's consent is required before the Council can formally adopt the next multiannual financial framework. The European Parliament is expected to vote on its consent on Wednesday.
In parallel, the Council has approved the draft interinstitutional agreement on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as the joint declarations agreed with the Parliament and the Commission as part of the talks concluded on 10 November. The Parliament and the Commission are expected to approve them by Wednesday.
- Council Regulation laying down the multiannual financial framework for the years 2021-2027
- Interinstituional agreement on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources
- Joint and unilateral declarations
EU budget for 2021
Separately, the Council has also adopted its position on the second draft budget for 2021, presented by the Commission last week. The draft budget reflects the common understanding reached on the content of the budget for 2021 in the conciliation committee on 4 December.
The European Parliament is expected to adopt the budget for 2021 by the end of this week, so that the first budget of the next multiannual financial framework can start running from 1 January 2021.
The total commitments in the 2021 budget are set at €164.2 billion and total payments at €166.1 billion. Funding has been directed towards mitigation of the effects of the COVID-19 pandemic, support for a sustainable recovery and the EU's green and digital transitions, in line with the priorities addressed in the next multiannual financial framework.
- EU budget for 2021: Council and Parliament reach common understanding (press release, 4 December 2020)
- Communication on the conclusion of the written procedure, including joint declarations and statements
+32 2 281 38 71
+32 470 89 08 50
If you are not a journalist, please send your request to the public information service.
Latest News from
Council agrees on emergency measures to reduce energy prices03/10/2022 16:33:00
EU energy ministers recently (30 September 2022) reached a political agreement on a proposal for a Council Regulation to address high energy prices.
Guidelines on general visa issuance in relation to Russian applicants and controls of Russian citizens at the external borders03/10/2022 15:25:00
The Commission recently (30 September 2022) presented updated guidelines to Member States on visa procedures as well as on border controls for Russian citizens at the EU's external borders.
Message of President Charles Michel on Russia's illegal annexation of Ukrainian regions03/10/2022 14:33:00
Message of President Charles Michel on Russia's illegal annexation of Ukrainian regions (30 September 2022).
Ethiopia: Statement by Commissioner Lenarčič on the humanitarian situation and International Humanitarian Law in northern Ethiopia03/10/2022 13:25:00
Ethiopia: Statement given recently (30 September 2022) by Commissioner Lenarčič on the humanitarian situation and International Humanitarian Law in northern Ethiopia.
Antitrust: Commission upgrades eLeniency tool to grant companies online access to leniency and settlement documents03/10/2022 12:10:00
The European Commission has upgraded its online platform “eLeniency” to ensure that companies who are parties to cartel and antitrust proceedings can easily and securely access documents online.
State aid: Commission approves aid to support the resolution of the Polish Getin Noble Bank S.A.03/10/2022 11:33:00
The European Commission has approved, under EU State aid rules, several support measures in the context of the resolution of the Polish Getin Noble Bank S.A.
Council and Parliament reach provisional political agreement on access to Union waters, extending the current rules for fishermen for another ten years30/09/2022 15:25:00
The Czech Presidency of the Council of the European Union and the European Parliament reached a provisional political agreement as regards the regime for access of fishing vessels to member states’ territorial waters.
Ensuring radiation protection: Commission refers LATVIA to Court to guarantee citizens' protection from ionising radiation-exposure risks30/09/2022 14:33:00
The Commission is taking legal steps to ensure the protection of citizens, workers and patients against the dangers arising from exposure to ionizing radiation.
Investor citizenship scheme: Commission refers MALTA to the Court of Justice30/09/2022 13:25:00
The European Commission yesterday decided to refer Malta to the Court of Justice of the European Union for its investor citizenship scheme, also referred to as the ‘golden passports'.
Human rights: EU increases support to the protection of human rights defenders worldwide30/09/2022 12:38:00
Human rights are increasingly under threat worldwide. Against this global backdrop, reconfirming the European Union's strong support to human rights, fundamental freedoms and democracy, and their defenders worldwide, Commissioner Jutta Urpilainen yesterday signed €30 million, a substantial increase, for the new phase of the EU Human Rights Defenders Mechanism, in the presence of civil society organisations and human rights defenders, for the period 2022–2027.