EU Heads of State or Government will hold a first real policy debate on Friday 18 October in Brussels on the main elements of the 2021-2027 Multiannual Financial Framework (MFF) (see EUROPE 12349/6, 12347/1). The European Council had a first exchange of views on the dossier in June (see EUROPE 12278/5).
EU leaders will not start negotiating strictly speaking on Friday, but they must give guidance on different topics, such as the total volume of the MFF, balance between policies, own resources and conditionality.
Then, the Finnish Presidency of the EU Council will have to draft the revised version of the ‘negotiation box’, with figures. The draft European Council conclusions provide for the presentation of a new negotiation box for the European Council in December 2019, which is intended to be decisive on this subject.
“We have to try”. Finnish Prime Minister Antti Rinne explained on Wednesday that he hoped the European Council would have an in-depth discussion on the general level of the MFF and on “how we will use the money in the future”. If “we can have this kind of discussion within the next two days, it is possible that the figures will be included in the ‘negotiation box’ by December of this year at the latest. But I’m not sure, we have to try”.
However, several diplomatic sources indicate that it will be difficult to meet the deadlines, as there are so many differences between the countries.
Finnish document criticised. During the discussions at the General Affairs Council, the Finnish Presidency document was heavily criticised by all sides. It will be submitted to EU leaders. However, it is “highly contested”, confirms a diplomatic source.
The ‘net contributors’ to the EU budget, such as Germany, Denmark, Austria, Sweden and the Netherlands, are asking not to exceed 1% of the EU-Twenty-Seven’s gross national income (GNI), whereas the Presidency had suggested a range of 1.03 to 1.08% and the Commission is expecting 1.114%. France is not taking a position on the figure after the decimal point but is rejecting any attempt to oppose policies to each other (modern and traditional).
The cohesion countries (Poland, Slovakia, Hungary, Greece...) criticised the planned cuts in cohesion policy appropriations.
Greek Deputy Foreign Minister Miltiadis Varvitsiotis told the press on Wednesday that Greece is calling for CAP and cohesion appropriations to be maintained at the same levels, with a total level of 1.3% of GNI. He said that a meeting with Europe’s regions will be held in Prague in November to call for the continuation of a “well-funded” cohesion policy. “The group of friends to cohesion is growing rapidly”, he said.
Several countries (France, Spain, Ireland, Greece...) advocate maintaining the current CAP budget with 27 Member States from 2021 to 2027.
With regard to own resources, the Finnish document only mentions a new own resource based on the quantity of non-recycled plastic packaging waste. (Poland is opposed). Several countries are asking for further tracks: France (which cites revenues generated by the emissions trading scheme), Italy (European investment bonds or a tax taking into account differences between countries in terms of taxation), Greece (digital tax, financial transaction tax) and Spain (carbon tax). France and Italy want the rebates to end quickly, while the countries that benefit from them, including Germany and the Netherlands, are against their abolition.
The Finnish Presidency is suggesting the creation of a mechanism linking EU funds to respect for the rule of law, an approach that does not enjoy unanimous support.
Finally, France is asking for a more ambitious target than 25%, i.e. a figure of 40%, for the share of the funds in the next MFF devoted to the green transition. (Original version in French by Lionel Changeur, with editorial staff)