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Europe Daily Bulletin No. 12223
EUROPEAN PARLIAMENT PLENARY / Foreign affairs

European Parliament adopts its position on single financial instrument for post-2020 neighbourhood/development

The European Parliament adopted its position on Wednesday 27 March in Strasbourg on the proposal for a Regulation establishing the single Neighbourhood, Development and International Cooperation Instrument (NDICI) in the EU's future 2021-2027 budget (see EUROPE 12041/1)

By a comfortable majority (420 votes in favour, 146 against and 102 abstentions), it managed to complete its first reading by largely endorsing the position of its ‘Foreign Affairs' and ‘Development' committees (see EUROPE 12207/19)

This instrument, which merges 10 existing instruments, will be endowed with €93.15 billion in current prices for the 2021-2027 period, an increase of €4 billion compared to the European Commission's proposal. 

With their vote, MEPs proposed a coherent framework to ensure an enhanced role for the European Parliament and set clear and ambitious objectives for the different areas of external action, while putting human rights and their promotion at the centre. 

On purely budgetary aspects, Parliament increased the total allocation by 4.4%; it also introduced guarantees for geographical financial allocations for neighbourhood and sub-Saharan Africa. 

It has further strengthened allocations for human rights, civil society and global challenges while at the same time reducing the reserve from €10.2 billion to €7 billion. 

Pier Antonio Panzeri (S&D, Italy), one of the four co-rapporteurs, said that this result, which was the result of a compromise between the political groups, represented a “balanced position” on merging existing instruments to allow for Parliamentary scrutiny. “All of the major strategic choices will be submitted to Parliament for consideration, and we will have the opportunity to object”, he said. Parliament has in fact voted in favour of delegated acts instead of the implementing acts proposed by the Commission. 

Parliament advocates a 45% increase in funding for the implementation of international commitments stemming from the universal sustainable development goals for 2030 and the Paris Climate Agreement and the inclusion of a clause suspending funding to countries that are falling behind in human rights or the rule of law. 

The approved amendments provide for a 24% increase in neighbourhood funds compared to the current allocation in the multiannual financial framework. 

For peace and stability, MEPs specified that these funds should guarantee sustainable development and not be used to purchase arms and ammunition or to carry out military or defence operations. 

With regard to sub-Saharan Africa, a programme is planned for the ACP (Africa/Caribbean/Pacific) countries to meet future challenges under the post-2020 Cotonou Agreement. A reference has been added for poverty eradication. 

With regard to official development assistance, MEPs propose to increase funding that meets the OECD criteria to at least 95% (instead of 92%). 

In the area of migration, they advocate a holistic and long-term approach that addresses the root causes of migration, including climate migration.

Denouncing the very critical attitude of the Greens/EFA Group towards this catch-all financial instrument, Cristian Dan Preda (EPP, Romania), co-rapporteur, recalled that initially his group wanted dedicated instruments (pre-accession, development, neighbourhood, humanitarian aid) because of the specific financial and political characteristics of the EU's fields of intervention, but that he had “committed himself in good faith to the work of improving the proposal”. 

Frank Engel (EPP, Luxembourg) pointed out that one issue remained unresolved: that of EDF budgeting, which France and some other Member States oppose.Let Parliament say that budgeting is a democratic necessity and let the EU Council take responsibility for this necessity”, he said. 

According to Charles Goerens (ALDE, Luxembourg), co-rapporteur, Parliament has kept its promise to “think outside the box”. And thinking outside the box “means making external action more coherent, budgeting for the EDF, understanding that it is a question of meeting challenges of a different magnitude after 2020 than those of today, and realizing that States cannot do everything. What could be more normal than inviting the private sector to divert its resources towards development?” (Original version in French by Aminata Niang)

Contents

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