Most of the member states have come out in favour of increasing the post-2020 multiannual financial framework (MFF), the President of the European Commission, Jean-Claude Juncker, announced following the informal summit on the institutional and budgetary future of the EU, on Friday 23 February (see other articles). The introduction of new conditions for the award of European funding is reported to have gone down well also, but subject to conditions.
The President of the European Council, Donald Tusk, expressed surprise at this, as did Juncker. They welcomed the fact that discussions had gone more smoothly than anticipated, as the EU leaders did not draw lines in the sand in advance, but turned up with an attitude of openness.
Most member states called for an increase in the next MFF. The Commission President reported that quite a few of them declared their intention of financing the budgets of the forthcoming financial perspective at a higher level than currently. “I cannot tell you how many member states, but I think there were 14 or 15 that expressed this intention”, he added, whilst observing that certain net contributors are still absolutely determined to fight any increase to the EU budget (see EUROPE 11967).
Four member states are reported to have expressed clear misgivings about the budgetary increase: the Netherlands, Sweden, Denmark and Austria.
However, plugging the budgetary gap caused partly the withdrawal of the United Kingdom from the EU would help to simplify the balancing act between the new political priorities (migration, management of the external borders, security and defence, Erasmus +) and the traditional policies (common agricultural policy and the cohesion policy).
Budget cuts for the CAP and cohesion
However, Juncker predicts budgetary cuts for agriculture and cohesion, which currently represent more than 70% of the EU budget. “Yes, we will have to make cuts in agriculture and cohesion spending (…). I’m not a huge fan of this, but it will be the reality”, he said.
Juncker explained that keeping these two policies at their current levels would mean cutting the budgets of other policies by 45%. He called for a debate on this to unfold harmoniously, “or as harmoniously as is possible when talking about money”.
The French President, Emmanuel Macron, also anticipates a budgetary drop in the envelopes earmarked for agriculture and cohesion, but would consider increasing France’s budget for the next MFF. He laid emphasis on making spending efficient, by reducing structural and management costs and building in a degree of flexibility.
This opinion seems to be shared by the German Chancellor, Angela Merkel, who stressed the need to reduce red tape, particularly concerning the CAP. She highlighted the importance of having a political EU budget, referring to research, artificial intelligence, foreign-policy missions, Africa and the protection of the external borders.
The Spanish Prime Minister, Mariano Rajoy, on the other hand, said that he would do all in his power to defend the CAP.
“Positive” conditionality goes down well
Against all expectations, the ambition of the net contributor countries to bring in new conditionalities for the granting of European funds did not lead to outcry.
Poland, for instance, said that it was very much in favour of this, Tusk noted, but not unless objective criteria are also introduced.
More generally, the member states are more disposed to accept ‘positive’ conditions, in other words setting an incentive in place rather than sanctions. In this spirit, Merkel repeated Germany’s willingness to allocate more funding to countries and regions involved in the hosting of migrants.
A “difficult” timetable to keep to
The European Council President confirmed that it would be very difficult to reach a unanimous political agreement of the member states by the end of 2018, to allow the budgetary procedure to conclude ahead of the European elections of May 2019.
Furthermore, several member states, including Sweden and Austria, announced that they would struggle to stand before their voters with an agreement that was already signed and sealed. According to a diplomatic source, the aim would be to move forward in the negotiations on the MFF with the current European Parliament and, if necessary, reach an agreement with the next one.
This first exchange between member states was all the more cordial as there are no figures on the table as yet. Discussions will get into the thick of the subject after the Commission makes its specific proposals on 2 May. (Original version in French by Pascal Hansens and the editorial team)