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Europe Daily Bulletin No. 12137
EUROPEAN PARLIAMENT PLENARY / Budget

EP endorses its ambitious position on multiannual financial framework 2021-2027

The European Parliament decided on Wednesday 14 November in Strasbourg to correct the initial proposals on the EU's multiannual financial framework (MFF) for 2021-2027 to obtain new money for new priorities, without cutting - as the Commission does - the appropriations dedicated to agricultural and cohesion policies (see EUROPE 12136). 

Parliament is ready to negotiate with the Council before the May European elections a compromise on the next MFF. But in the Council, delegations are divided on the timetable. 

Don't get any illusions. MEP Alain Lamassoure (EPP, France) said on Wednesday in Strasbourg that Parliament's position was a “good basis for negotiations”. "Nevertheless, we should not be under any illusions: the European Council will not be able to reach a unanimous agreement on the MFF by May", he predicted. For him, this makes sense from a democratic point of view. "It will be up to the next Commission and Parliament to discuss and decide with the Council on the future financial means” for the EU. 

The interim report on the MFF 2021-2027 - Parliament's position for an agreement - by rapporteurs Jan Olbrycht (EPP, Poland), Isabelle Thomas (S&D, France), Gérard Deprez (ALDE, Belgium) and Janusz Lewandowski (EPP, Poland) was adopted by Parliament with 429 votes in favour, 207 against and 40 abstentions. The initial report was not amended, as the amendments tabled in plenary by the EFDD, Greens/ALE and GUE/NGL groups were rejected (see EUROPE 12131). 

Parliament calls for the EU's contribution to the achievement of climate objectives to be set at a minimum of 25% of MFF expenditure and 30% as soon as possible, but no later than 2027. 

Parliament confirms its official position that the MFF 2021-2027 should amount to 1,324.1 billion euros at 2018 prices, or 1.3% of EU-27 GNI (gross national income) (the Commission proposed 1.08% of GNI). 

Parliament's requests for expenditure include: - increase the budget for Horizon Europe to 120 billion euros; - maintain funding for cohesion policy and the common agricultural policy for the EU-27; - double the resources for combating youth unemployment under the European Social Fund + (ESF+); - triple the budget for the Erasmus+ programme; - double the current funding for the Life+ programme. 

New proposals. Parliament invites the Commission to present a proposal for a regulation establishing a ‘Fair Energy Transition Fund' (with 4.8 billion euros from 2021 to 2027) and a specific programme on sustainable tourism. Parliament supports a 'European guarantee for children' (5.9 billion euros over 7 years) under the ESF+. 

Mid-term review. The Assembly calls for a mandatory and legally binding mid-term review of the MFF by 1 July 2023. 

Own resources. Parliament calls for the introduction of new own resources, including a digital tax, a share of revenue from the emissions trading scheme, or a contribution based on the quantity of non-recycled plastic packaging. (Original version in French by Lionel Changeur with Solenn Paulic)

Contents

INSTITUTIONAL
EUROPEAN PARLIAMENT PLENARY
ECONOMY - FINANCE - BUSINESS
SECTORAL POLICIES
EXTERNAL ACTION
SOCIAL AFFAIRS
COURT OF JUSTICE OF THE EU
NEWS BRIEFS