The Finnish Presidency of the Council forwarded to the EU Member States the latest version of the ‘negotiation box’ providing for a European budget for 2021-2027 which would be at 1.07% of the EU's gross national income (GNI) (see EUROPE 12377/4).
This document, which is intended to facilitate the negotiation of an agreement on the 2021-2027 multiannual financial framework (MFF), will be sent for discussion to EU ambassadors on Wednesday 4 December and then to the General Affairs Council on 10 December. EU Heads of State or Government will discuss them at the European Council in Brussels on 12-13 December with a view to a possible compromise around February or March 2020.
€1,087 billion. The maximum total amount of expenditure for the Twenty-Seven for the period 2021-2027, according to the new ‘negotiation box’ presented by the Finnish Presidency, reportedly amounts to €1,087 billion in commitment appropriations (1.07% of EU GNI) and €1,080 billion in payment appropriations (1.06% of GNI). In October, the Presidency had forecast a level between 1.03 and 1.08%; the latest draft is therefore close to the Commission’s proposed figures. All figures are expressed in constant 2018 prices, with automatic annual technical adjustments for inflation (fixed deflator of 2%).
The Commission had proposed a budget of €1,135 billion in commitments (2018 prices), or 1.1% of the GNI of the Twenty-Seven.
Decrease in agricultural credits and cohesion. The Finnish Presidency is thus suggesting a 12% reduction in cohesion policy expenditure compared to the 2014-2020 MFF. Funding for the Common Agricultural Policy (CAP) is decreased by 13%. On the contrary, allocations for EU priority programmes (research, border control, climate) reportedly benefit from an increase of 37%. As a result, the new priorities would represent 32.8% of the total budget during the next MFF, compared to 30.7% for agriculture and 29.7% for cohesion policy.
The level of commitments for heading 1 ‘Single Market, Innovation and Digital’ would benefit from a maximum total of €151.79 billion for 2021-2027, including €5 billion for the ITER project, €12.7 billion for the implementation of the space programme, €84 billion for the Horizon Europe programme (including €8.6 billion for food, agriculture and environment) and €28.4 billion for the Connecting Europe Facility (CEF).
Commitment appropriations for heading 2 ‘Cohesion and values’ amounted to a maximum of €374.056 billion, of which €323.181 billion would be allocated to the subheading ‘Economic, social and territorial cohesion’. In particular, €194.6 billion is provided for the less developed regions, €43.2 billion for regions in transition, €34.2 billion for more developed regions and €39.7 billion for the Member States supported by the Cohesion Fund.
For heading 3 ‘Natural resources and environment’, a total amount of €346.582 billion is foreseen, including €254.247 billion for market expenditure and direct payments (like in the Commission proposal). The Finnish Presidency plans a system of capping direct payments at €100,000 and a system of ‘external convergence’ of support (all Member States whose direct payments per hectare are less than 90% of the EU average will cover 50% of the gap between their current average level of direct payments and 90% of the EU average in six equal steps from 2022 onwards).
The allocation for the ‘Asylum and Migration Fund’ for the period 2021-2027 is reportedly €9.205 billion.
Climate. EU programmes and instruments should contribute to the integration of climate actions and to the achievement of an overall target of at least 25% of EU budgetary expenditure in support of climate objectives.
Euro area budget. The budget instrument for convergence and competitiveness (BICC) would have a total budget of €12.9 billion (with possible additional voluntary contributions) over 7 years.
Protection of the Union budget in the event of widespread deficiencies in the rule of law. “In order to protect the proper implementation of the EU budget and the financial interests of EU Member States”, a general conditionality regime will be put in place to address identified cases of widespread rule of law deficiencies in Member States’ authorities, the document states. Conditionality under the scheme would be “real, in order to address in a sufficiently direct way” deficiencies affecting the proper implementation of the EU budget or the Union’s financial interests. Cases of deficiencies would be identified using “clear and sufficiently precise criteria”. In the event of such shortcomings, the Commission will propose “appropriate and proportionate” measures to be approved by the EU Council by a qualified majority (the term ‘reversed’ remains in square brackets). This regime would be “separate and autonomous” from the other procedures provided for by the Treaties (such as Article 7).
Own resources. The document foresees the expiry of the budgetary corrections at the end of 2020. A (modest) “basket of new own resources” would be set up. Finland mentions a national contribution calculated on the weight of non-recycled plastic packaging (with a call rate of €0.80 per kilogram). It refers, in square brackets, to an emissions trading system (call rate of 20%) and leaves the door open for possible further new own resources, including an extension of the emissions trading system.
To consult the document on the new negotiation box: http://bit.ly/34HwPYP (Original version in French by Lionel Changeur)