On Wednesday 14 March, the European Parliament adopted the draft Olbrycht/Thomas report on the post-2020 multiannual financial framework (MFF) and the draft Deprez/Lewandowski report on the reform of the system of own resources of the EU, with hardly any modifications (see EUROPE 11980 and 11967).
There were no real changes compared to what the parliamentary committee on budgets voted through on the level of the budget, its duration, political priorities, structure or functions, a parliamentary source confirmed.
The MEPs are calling for the EU's upper spending limit to be set at 1.3% of gross national income (GNI), to pay for the new political priorities identified – innovation, security, migration – without sacrificing the traditional policies, such as the common agriculture policy (CAP) and territorial cohesion.
The MEPs call for the programmes for research and innovation, mobility (Erasmus+), the youth employment initiative, support for SMEs and investments in infrastructure in the framework of the Connecting Europe Facility to be reinforced. They adopted an amendment tabled by the Greens/EFA Group, calling for the funding allocated to the LIFE+ programme to be at least doubled, in a context in which climate issues will be duly taken on board in the future EU spending.
The Parliament is ready for negotiations with the Council, Jean Arthuis (ALDE, France) told the press. However, the chair of the European Parliament's budgets committee and the president of the Liberal group, Guy Verhofstadt of Belgium, abstained during the vote. The Social Democrats criticised this attitude as being due to petty internal politics.
Arthuis told EUROPE that the texts adopted are too close to 'business as usual' and that the Parliament to be voted into place in May 2019 will have to have its say on the post-2020 MFF, through a revision clause. “It's not a question of the ceiling”, he said.
“Logically, you would think that when the United Kingdom leaves, the budget would get smaller. But MEPs have just voted to increase every country's contributions”, criticised Bernd Kölmel (ECR, Germany).
Conditionality. The MEPs call upon the Commission to create a mechanism to punish member states breaching the rule of law, but not the beneficiaries of European co-funding.
Noting many amendments aiming to sanction the illiberal policies of countries such as Poland and Hungary, rapporteur Olbrycht (EPP, Poland) considers that such a mechanism is inevitable, as long as it does not lead to a freeze on European funds meant for beneficiaries who have not themselves breached the rule of law, otherwise it would be unfair and ineffective, he said.
Concerning the structure of the budget, the European Parliament opposes any unjustified radical change and proposes the following six headings: (1) a stronger and more sustainable economy; (2) reinforced cohesion and solidarity in Europe; (3) stronger and more sustainable agriculture and fisheries sectors; (4) greater responsibility in the world; (5) security, peace and stability for all; (6) effective administration at the service of the Europeans.
The idea of a separate heading for the CAP and fisheries, which was under consideration at one point, has finally been abandoned.
Own resources. The EU budget is currently made up as follows: 69% from the GNI-based contributions, 13% from traditional own resources (customs duty, agricultural duty, sugar quotas), 12% from VAT revenue and the rest from tax paid by EU staff and competition infringement fines.
According to the MEPs, the introduction of new resources to feed into the EU budget should ultimately make it possible to reduce the share of the national contributions to 40%. This will save the member states money and put an end to the 'juste retour' mindset.
The Parliament is also calling for Brexit to serve as an opportunity to scrap all rebates awarded to certain member states.
The own resources referred to by the Parliament include the creation of carbon, plastics and digital taxation. Additionally, a proposal for the taxation, at European level, of the web giants will be tabled on Wednesday 21 March (see EUROPE 11970).
The Commission's proposals for a post-2020 MFF will be presented on Wednesday 2 May. (Original version in French by Mathieu Bion)