The European Ministers for European Affairs were once again able to note, on Monday 16 September in Brussels, the differences in their views on the main elements of the next EU Multiannual Financial Framework (MFF) for 2021-2027 (see EUROPE 12299/6).
The EU General Affairs Council held a debate on Monday on the next deadlines of the MFF 2021-2027.
Due to differences between countries on the MFF and uncertainties about how the United Kingdom will withdraw from the EU, the planned timetable for agreement by the end of 2019 between EU Heads of State or Government on the next MFF seems very difficult to meet. The European Council on 17 and 18 October will focus on the MFF, but also on Brexit, which makes it very difficult to make maximum progress on the MFF 2021-2027. The European Council aims to conclude an agreement by the end of 2019 on the MFF 2021-2027.
The Finnish Presidency at the helm. Finnish Minister for European Affairs, Tytti Tuppurainen, recalled that the response of the EU delegations as well as the bilateral ones with Member States provided “useful information on each other's priorities”. The Finnish Presidency will prepare a document to assist the President of the European Council, Donald Tusk, in preparing for the exchange of views between EU leaders at the European Council in Brussels on 17 and 18 October. After this debate at the European Council, the Finnish Presidency will draft a new version of the ‘Negotiating Box’ “to prepare for the next steps”, said Tytti Tuppurainen. This Negotiating Box is a 'living' document aimed at facilitating a compromise on the 2021-2027 MFF.
On Thursday 12 September, the Finnish Presidency met with the new team of European Parliament negotiators on this issue. The Finnish Minister recalled that the European Parliament continues to defend a total volume amounting to 1.3% of the Twenty-Seven's Gross National Income, compared to 1.114% put forth by the Commission. Several EU countries do not wish to exceed the 1% GNI limit.
Germany advocates a budget limited to 1% of EU GNI. Germany would have made it clear that it wanted a post-Brexit MFF 2021-2027 limited to 1% of EU GNI, a position defended by other so-called 'net contributors' to the EU budget, such as the Netherlands, Denmark, Sweden or Austria.
France acknowledged that Germany had defended this position close to 1% of GNI.
According to Amélie de Montchalin, French Secretary of State for European Affairs, the “starting point” should not be the total amount of the EU budget or “the number after the comma”, but rather the policies to be defended.
She once again called for the maintenance of the current level of Common Agricultural Policy (CAP) expenditure and the creation of new own resources to “ensure the ecological transition”. The Secretary of State cited plastics, the carbon market or the carbon inclusion mechanism at borders (integrating products manufactured outside the EU and in sectors at risk of offshoring into the carbon market) as new own resources.
France and Sweden, in particular, once again defended, as did the Finnish Presidency, the conditionality mechanisms in the budget (payment of credits subject to compliance with certain criteria, in particular the Rule of law).
No progress on the new own resources. Parliament also calls, like the Commission or certain countries such as France or Italy, for the creation of new resources to finance the EU budget for 2021-2027.
But Member States are very divided and Budget Commissioner Günther Oettinger regretted the lack of progress in the EU Council on this issue.
The Polish Minister for European Affairs criticised the unfairness of the options for the national contribution calculated on the weight of non-recycled plastic packaging waste and the emissions trading scheme. Poland wants to discuss the financial transaction tax or the digital tax.
Poland is stalling and Spain is concerned. Poland has asked the Finnish Presidency not to move too fast in the negotiations, in order not to “tie the hands of the future President of the European Council” who will replace Mr Tusk on 1st December. The country also criticised the planned cuts in appropriations for the CAP and cohesion policy.
Luis Marco Aguiriano Nalda, the Spanish Secretary of State for the EU, expressed his "strong concerns" about the state of the negotiations. “We do not see how we are going to meet the timetable” for an agreement by the end of 2019 on the MFF 2021-2027, the Spanish Secretary of State regretted.
“My main concern is that Europe will be in a difficult economic and geopolitical situation if there is no budget on 1st January” 2020, said Mr Oettinger, recalling that some of the EU's “big countries” risk facing an economic recession soon. (Original version in French by Lionel Changeur)