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Europe Daily Bulletin No. 11660
INSTITUTIONAL / Budget

Slovak Presidency of Council puts forward compromise on revision of multiannual financial framework

On Friday 4 November, the Committee of Permanent Representatives to the EU (Coreper) will discuss a compromise text of the Slovak Presidency of the Council of the EU on the mid-term revision of the multiannual financial framework (MFF) 2014-2020. At this stage, the aim is still to reach agreement on this dossier by the end of the year, if possible at the General Affairs Council of 15 November.

Negotiations between the member states on the mid-term revision of the MFF are getting down to the bare bones of the issue. The two questions at the forefront are the financing details for the additional funding for priority areas (security, migration, growth and employment) and the accountancy treatment of the special instruments (EU Solidarity Fund, European Globalisation Adjustment Fund, emergency aid reserve and flexibility instrument).

The European Commission made a proposal to make €6.4 billion available over the period from 2018 to 2020 to pay for the priorities (see EUROPE 11629, 11628) and (EUROPE 11624). The Slovak Presidency's idea is reported to involve trimming this additional envelope slightly, by making more use of redeployments under heading 1a (growth).  The sum of €5.8 billion may be proposed (rather than €6.4 billion). The extra amounts under headings 3 (security and justice) and 4 (EU in the world) to manage the refugee and migrant crisis have been agreed to by the Council.

As regards the special instruments, Poland and other member states from Central and Eastern Europe are asking for these to be dealt with above the ceilings of the MFF. The Commission also shares this view. The so-called 'net contributor' countries, on the other hand, are calling for these special instruments to be included within the ceilings of the MFF.

No more crisis reserve? Furthermore, many member states are opposed to the idea of creating a new reserve to manage the crises of the Union. The Slovak Presidency may opt for a non-automatic mechanism, with a funding ceiling. However, there is much opposition in principle. The idea of using 'recycled de-commitments' to pay for this reserve (as proposed by the Commission) has been challenged by many member states, net contributors and those that derive the greatest benefit from EU policies alike. In fact, the most recent version of the compromise text makes no plans to create this crisis reserve.

The Council wants to tackle the MFF dossier separately from the negotiations on the 2017 budget. For its part, the European Parliament argues that the two are a single package (see EUROPE 11655). (Original version in French by Lionel Changeur)

Contents

BEACONS
INSTITUTIONAL
SECTORAL POLICIES
ECONOMY - FINANCE - BUSINESS
EMPLOYMENT
EXTERNAL ACTION
COUNCIL OF EUROPE
NEWS BRIEFS