The first discussions between the member states, at the level of the national ambassadors to the EU (Coreper) on Wednesday and ahead of the General Affairs Council, have shown that the discussions on the mid-term revision of the multi-annual financial framework of the EU will be sensitive and highly complex (see EUROPE 11628).
At the meeting of Coreper, the European Commission presented the proposals of 14 September on the mid-term revision of the MFF 2014-2020 (see EUROPE 11624). In particular, it stressed that the €6.4 billion extra earmarked for the new priorities (investment, youth employment, migration, European fund for sustainable development) will be financed without exceeding the ceilings of the MFF. The increased budgetary flexibility proposed will not lead to any additional expenditure, according to the European institution, a viewpoint that is not shared by the so-called 'net contributor' countries to the EU budget.
In the framework of the mid-term revision of the MFF, the Commission has proposed: - to double the level of the flexibility instrument and the emergency aid reserves; - to remove all restrictions for the overall margin for commitments and the overall margin for payments; - a new EU crisis reserve; - to create a 'flexibility reserve' for the external instruments; - and to create trust funds for internal policies as well.
In defence of the traditional policies of the EU. The countries of the 'net beneficiary' camp (including Spain, Poland, Hungary) and the 'cohesion' countries stressed that the payments for the various flexibility instruments should be situated above the ceilings of the MAFF. Several delegations in this camp spoke in favour of the cohesion policy and the common agriculture policy (CAP), the funding for which may adversely affect the new priorities (including investment and migration). Some of the countries in favour of an important role for the cohesion policy expressed doubts as to the new EU crisis reserve, as the procedure would lead to the recycling of unused commitment appropriations. The new financial instruments are a problem for many of the 'net beneficiary' countries, which are calling for an ex-ante assessment of these instruments. These countries, which include Spain, prefer to prioritise the 'historical' EU aid.
Acting within the ceilings of the MFF. The so-called 'net contributor' countries once again stressed the need to comply with the current ceilings of the MFF and expressed doubts as to whether the Commission's proposals will respect this principle. The concern for some of these countries, particularly the Scandinavian countries, is that the Commission's proposals will bring about an increase in the contributions of the member states to the Community budget. These countries are calling for more redeployments and are concerned that the budgetary margins will be fully used up.
The prospect of Brexit changes things. At the meeting of Coreper, the French delegation pointed out that the withdrawal of the United Kingdom from the EU may have a major impact on the EU budget if the British leave the EU in or around 2019.
The Commission's proposals, particularly regarding special instruments (flexibility), would have the effect of increasing the payment appropriations by €17 billion over the period (to run to 2020), according to one delegation. In total, the increase in the payment appropriations stemming from the Commission's proposals on the mid-term revision of the MFF could stand at €34 billion, a situation that would hit the member states' national contributions hard. The Friends of the Presidency group will hold discussions on Friday 23 September on the dossier of the mid-term revision of the MAFF and Coreper will regularly take stock of the state of progress with the talks. (Original version in French by Lionel Changeur)