Brussels, 14/06/2012 (Agence Europe) - The European Parliament has said that it is not prepared to approve the new regulation on the multiannual financial framework (2014-2020) “without political agreement on reform of the own resources system, putting an end to existing rebates and other correction mechanisms and bring increased transparency, equity and sustainability.” It delivered this warning to the Council through its adoption of a resolution on the Multiannual Financial Framework (MFF) for the EU's own resources on Wednesday 13 June in Strasbourg (541 votes to 100, with 36 abstentions).
Under the treaties, the EU budget must be “financed wholly from own resources” (Article 311). Parliament welcomes the legislative proposals, presented by the Commission on 29 June 2011, on reform of the own resources system, including proposals on introducing a financial transactions tax and a new EU VAT as own resources, which would reduce EU member states' contributions based on gross national income (GNI) from 75 % to 40 % by 2020.
The EP reiterates its desire for a robust budget for the 2014-2020 period. It points out that the Union's budget is an investment budget that contains a strong leverage effect, given that 94% of the money will go to stimulating economic growth and job creation and strengthening the Union's role as an actor on the world stage. Despite its small scale, only 2% of public spending in the Union, the Union budget “pools resources, acts as a catalyst and allows for economies of scale as well as cross-border benefits, as well as helping attain the Union's political objectives that have been decided in common”, explains the EP. It estimates that the Union budget should play a strategic role, alongside the budgetary consolidation currently being imposed in national budgets.
Flexibility. MEPs highlight the fact that the MFF for 2014-2020 should introduce greater budgetary flexibility both within and across headings as well as between financial years “in order to ensure that budgetary resources can be appropriately aligned with evolving circumstances and priorities”.
The Parliament was the first EU institution, on 8 June 2011, to adopt a position on the 2014-2020 framework. The European Commission presented its proposal on 29 June 2011. The Danish Presidency will present the negotiating box during the European Council on 28 and 29 June. (LC/transl.fl)