The Finnish Presidency of the Council of the European Union attaches great importance to the protection of the EU budget in case of generalised deficiencies in a Member State (conditionality) and expects the EU Council's position on this matter to be finalised after there is an agreement at the European Council on the EU's Multiannual Financial Framework (MFF) for 2021-2027.
The two subjects are closely linked, given that some elements of the budget/rule of law proposal are included in the elements of the next MFF.
In order to ensure the proper implementation of the EU budget and to protect the Union's financial interests, a general conditionality regime is provided for in order to respond to identified cases of generalised deficiencies as regards the rule of law in Member States, or widespread dysfunction of Member States' authorities regarding aspects linked to the budget.
The Finnish Presidency is doing its utmost to ensure that the timetable set by the June European Council is respected, i.e. that an agreement is reached by the end of 2019 on the MFF 2021-2027.
According to it, in the first half of 2019 under the Romanian Presidency of the EU Council, significant progress was made in the working group of national experts on discussions on the proposal linking budget and respect for the rule of law.
At the end of June, the Romanian authorities drafted a progress report, of which EUROPE obtained a copy, on the proposal showing the following issues to be resolved in order to reach an agreement: - identify deficiencies that justify the adoption of corrective measures (open/closed list?); - the conditions for triggering the measures (decision by a normal/reversed qualified majority?); - the protection of the final beneficiaries of EU funds and the proportionality of the measures; - the procedure for the lifting of measures.
The Presidency's objective is to “take the dossier as far as possible”, a Finnish source told EUROPE. But it must be taken into account that the open-ended key elements of this proposal are included in the 'negotiating framework' and require guidance from EU leaders.
The MFF 2021-2027 is on the agenda of the October European Council. The discussion will be prepared by the October EU General Affairs Council, which will submit a specific document to the leaders. Following instructions from the heads of state or government, the Finnish Presidency will produce a fully revised 'negotiating framework' with figures for the final stages of the negotiations on the MFF.
See the progress report of the Romanian Presidency: http://bit.ly/2n8HLOe (Original version in French by Lionel Changeur)