Brussels, 20/06/2013 (Agence Europe) - Will the European Parliament (EP) agree with the deal reached on Wednesday 19 June by the Irish Presidency of the Council of Ministers and the chair of the budgets committee at the European Parliament on the European Union's multiannual financial framework for 2014-2020? Far from certain, judging by the criticisms voiced by members of the S&D, ADLE and Greens/EFA, and the resignation of Reimer Böge (EPP, Germany) from the job of rapporteur on the financial perspectives (the remaining four rapporteurs are still in place).
The Irish deputy prime minister and foreign minister, Eamon Gilmore, said on Wednesday evening after a three-way meeting that he had agreed with the chair of the EP's budgets committee, Alain Lamassoure (EPP, France) on a package to be submitted to the General Affairs Council on Tuesday and also to the European Parliament. The package covers the four areas identified by the EP, he said, namely: - flexibility to make the most of cash available in the EU budget; - mid-term review clause: he said the Commission would unveil proposals in 2016 so that the new EP elected in 2014 would be able to review what is in the MFF; - a method for pursuing talks on own resources (a timetable and a political review of the situation every six months); - a single budget is guaranteed (so that European taxpayers can see where their money is going at EU level). This is very good for Europe, commented Gilmore, pointing out that the total EU budget (€960 billion) was six times bigger than the Marshall Plan, and they had reach a balance compromise.
For the 2013 budget, he pointed out that the Ecofin Council had agreed on €7.3 billion towards the outstanding invoices, with the remainder at a later date, but the EP wants guarantees for the full €11.2 billion. Nothing concrete was agreed on this on Wednesday.
Alain Lamassoure said he had agreed with the Irish Presidency on the contents of a possible compromise, adding that nothing more could have been negotiated because both politicians had gone as far as their mandates allowed.
EP to decide on Tuesday whether or not to go along with the package. At 9.30am on Tuesday 25 June, the EP president, Martin Schulz, will meet with the EP rapporteurs on the MFF and the political group co-ordinators to see whether a majority could go along with the deal. If so, he will tell the General Affairs Council meeting that same day in Luxembourg so that it can approve the draft regulation on the MFF. The Presidency will only present the deal to the Council if it has assurances that the EP would support it. Gilmore said he was “confident”.
Sources have said that the package agreed on Wednesday is the final offer from the Irish and it had been accepted by Lamassoure on a personal basis, but none of the rapporteurs has yet endorsed it.
Hannes Swoboda, head of the S&D Group, commented: “We deeply regret that the Council did not make a more substantial move towards the European Parliament's demands for EU citizens”. The head of the ALDE Group, Guy Verhofstadt, said: “At this stage, there is still no agreement between the Parliament and the Council”. “Little progress has been made in meeting the EP's demands for the modernisation of the budget and, in terms of flexibility, progress is insufficient. We demand a real revision, obliging the Council to return to the negotiating table with our newly elected colleagues next year”, he stated. On behalf of the Greens/EFA, Isabelle Durant said that the Irish Presidency's proposal was simply “indigestible” and she would be recommending that her group reject the compromise because it did not provide Europe with any prospects of recovery or getting out of crisis over the next seven years.
Details of the compromise (seen by EUROPE). The package on the table includes progress on flexibility. For the question of using unused funding earmarked for payments in the following year, the deal moves away from the suggested cap of €4 billion a year to zero in 2015, €3 billion in 2016 and 2017, €4 billion in 2018, €6 billion in 2019 and €8 billion in 2020, which works out at an average of around €4 billion a year. The deal includes flexibility for commitment appropriations (which the Council of Ministers initially rejected) whereby, on a single occasion, in 2017, any unused margins from the three previous years could be used during the last four years of the MFF (from 2017 to 2020) for spending connected with growth and jobs (main jobs for young people). The EP wanted this flexibility to apply every year and is critical of the suggested methodology. It is also demanding flexibility in another area - “frontloading” spending, such as the €3 billion earmarked for jobs for young people, in addition to the €3 billion from the European social fund.
On the review clause, it is envisaged that the Commission unveil by the end of 2016 a review of how the MFF is operating, taking account of the economic situation prevailing at that time. This compulsory review shall, as apppropiate, be accompanied by draft legislation to amend the MFF. The EP is unhappy about the idea of the review being subject to a unanimous vote at the Council, rather than a qualified majority vote.
On own resources, there is a non-binding written statement calling for the establishment of a high-level working group by the three EU institutions to work on the question of own resources. National parliaments and experts would be involved, but any changes would only apply after the 2014-2020 MFF. (LC/transl.fl)