EU European Affairs Ministers meeting on Tuesday 18 June in Luxembourg are expected to reveal their differences on the elements of the multiannual financial framework (MFF) 2021-2027 (see EUROPE 12274/7).
In preparation for the European Council on 20 and 21 June in Brussels, the Romanian Presidency of the Council will present to the General Affairs Council the latest version of the negotiating box on the next MFF, a developing document aimed at facilitating negotiations on this very sensitive issue (see EUROPE 12273/19). The European Commission wants a political agreement to be reached at the European Council in October 2019.
The document does not contain any figures, either on the total volume of the MFF as a percentage of the EU's gross national income (GNI) or on the amounts allocated to the different headings of the EU budget. However, it points out that there would be no mid-term review of the MFF 2021-2027. One delegation criticized this lack of flexibility.
Climate. The negotiating framework provides that programmes and instruments should contribute to the achievement of an overall target of at least [25]% of the Union's budgetary expenditure in support of climate objectives.
Rule of law. In order to protect the sound implementation of the EU budget and the financial interests of the Union, a general regime of conditionality will be introduced to tackle problems in the Member States.
Two options to trigger the mechanism are presented in order to take into account the different sensitivities: - generalised deficiencies as regards of the rule of law in Member State authorities; - generalised malfunctioning of Member States authorities as regards budget-related aspects.
In the event of shortcomings, the Commission would propose proportionate measures to be approved by the European Council by qualified majority (reversed, in brackets).
Research. Heading 1 provides funding for large-scale projects, such as the new European Space Programme and the International Thermonuclear Experimental Reactor (ITER) project. The Horizon Europe research framework programme would be based on excellence, with a reference, at the request of the Central and Eastern European countries, to wider participation.
Heading 2 (cohesion) provides rules on how cohesion policy funds are allocated, and rules on capping, safety nets and co-financing rates (figures in brackets).
Agriculture. Heading 3 'Natural resources and environment' recalls the ambitious target of achieving at least [25]% of EU spending contributing to climate objectives.
On the Common Agricultural Policy (CAP), the negotiating framework refers to the new implementation model and future strategic plans. The share of agricultural expenditure dedicated to climate action should be [40]%.
The negotiating framework mentions several options on the controversial subject of external convergence of aid and refers, in brackets, to the 'voluntary' nature of capping and degressivity of aid. In addition, there is an agricultural reserve and the maintenance of financial discipline (threshold of [2000] euros).
In external action, the document confirms the differences on the budgetisation of the European Development Fund (EDF) and on the conservation of a specific European Neighbourhood Instrument (see EUROPE 12259/2).
Own Resources. The system for collecting traditional own resources would remain unchanged. The VAT-based own resource would be abolished or replaced by a simplified system.
A basket of new own resources would be introduced: - an Emissions Trading System with a call rate of [20]%; - a national contribution calculated on the weight of non-recycled plastic packaging waste (with a call rate of EUR [0.80] per kilogram); - possible new Own Resources to be brought forward by the Commission or defined by Member States.
Corrections. The negotiating framework provides that the current system of corrections "expires at the end of 2020". There is also provision for a gradual reduction in the flat-rate repayments granted to Member States. (Original version in French by Lionel Changeur)