EU European Affairs Ministers were divided on Tuesday 21 May in Brussels on the proposal to integrate the European Development Fund (EDF) into the European budget after 2020. In addition, many called for the maintenance of a European Neighbourhood Instrument (ENI) separate from other EU external action funds.
The EU ‘General Affairs’ Council was thus divided and rather critical of the European Commission's proposals for EU external action instruments in the next Multiannual Financial Framework (MFF) for 2021-2027. The Commission has proposed replacing the various programmes with a single fund, the Neighbourhood, Development and International Cooperation Instrument (NDICI). It has also proposed, as the European Parliament in particular wishes, to integrate the European Development Fund (EDF) into this Neighbourhood, Development and International Cooperation Instrument (NDICI).
EU Foreign Ministers have, for the most part, supported the financial allocations proposed by the Commission for external action in the 2021-2027 MFF. However, some countries, such as Sweden and Austria, have reiterated their desire to limit the EU budget to 1% of the EU's Gross National Income (GNI) per year over the next seven-year period.
As regards the timetable for negotiations on the MFF, only a few countries, such as Spain, Portugal, Latvia and Luxembourg, have asked for work to be speeded up, particularly at the June European Council, with a view to reaching a political agreement in autumn 2019 at the level of EU Heads of State or Government. “Quality must take precedence over timing”, noted the Polish minister. The European Commissioner for the Budget, Günther Oettinger, recalled that there are six months left to complete the dossier.
Integration of the EDF divides Member States. The EU Council was divided above all on the proposal to integrate the EDF into a new comprehensive instrument and, therefore, into the EU budget.
The ministers of the following countries voted in favour of the EDF budgetisation proposal: Estonia, Spain, Belgium (provided that there is not too much flexibility in the use of unspent funds), the Netherlands, Portugal, Germany (provided that the current rules on unspent amounts are maintained), Ireland, Sweden, Denmark (with compliance regarding the rules on the annuality of the budget), Czech Republic (provided that unspent amounts may not be reused), Finland, Cyprus, Malta and Greece.
On the other side, France, Poland (in particular to maintain good relations with the United Kingdom after Brexit), Hungary (unless the MFF ceiling is increased), Slovakia, Slovenia, Bulgaria, Latvia and Croatia have opposed the integration of the EDF into the EU budget, for sometimes different reasons.
Fight against immigration. Italy indicated that having a single instrument could be “something positive”, but it considered that the proposed funds were not sufficient to effectively address the root causes of immigration. “The EU now earmarks a third less funding for cooperation than in the 90s”, the Italian minister stressed.
Signage. The Commission has proposed setting aside at least 10% of the new Neighbourhood, Development and International Cooperation Instrument (NDICI) for actions that combat immigration. Hungary considered that 10% was insufficient (Hungary proposed at least 25%).
The Commission has proposed a minimum of 25% for climate-related actions, an effort supported in particular by the Czech Republic. France has asked for a more ambitious target of 40% (and even 50% for actions in favour of the environment and biodiversity).
Maintaining a separate instrument for the neighbourhood policy. A majority of delegations (including Poland, France, Portugal, Estonia, Latvia, Lithuania, Slovakia, Hungary, Bulgaria, Malta and Luxembourg) requested that a separate instrument for the EU's neighbourhood policy be maintained in the 2021-2027 budget.
This debate will help the Romanian Presidency of the EU Council to prepare a new 'negotiating framework' on the MFF in June. (Original version in French by Lionel Changeur)