The Finnish Presidency of the EU Council’s latest version of the quantified ‘negotiating box’ for the 2021-2027 budget was strongly criticised by Member States on Wednesday 4 December, particularly with regard to cuts in cohesion spending (see EUROPE 12381/1).
On Wednesday, EU ambassadors held a lengthy debate on the EU's next Multiannual Financial Framework (MFF), based on the Finnish document, which has been widely criticised. This version of the Finnish Presidency's ‘negotiating box’ will be forwarded without changes to the European Ministers of the General Affairs Council, who will discuss it on 10 December. The European Council will then hold a debate on the next MFF on 12 and 13 December.
According to draft conclusions, the European Council should, after a debate on the ‘negotiating box’ presented by Finland, call on the President of the European Council to take the negotiations forward “with a view to reaching a final agreement”.
During the round table at Coreper level on Wednesday, the 16 so-called ‘cohesion’ countries strongly criticised the excessive cuts in funding for cohesion policy in the Finnish document (see also other news). Criticisms have also been focused at the strict conditions for the implementation of this policy and at the reference period for the granting of funds. Some countries would have welcomed the elements allowing the category of so-called ‘transition’ regions to be retained.
The countries classified as ‘net contributors’ to the budget (Germany, the Netherlands, Sweden...) considered the total amount provided for in the Finnish document (1.07% of the EU's Gross National Income) too high and reiterated that they did not want to go beyond 1% of GNI.
Some countries defending the appropriations of the Common Agricultural Policy (CAP), such as France, have reportedly insisted on the need to increase the amount of direct aid, taking into account the challenges facing the sector (modernisation, climate). The expected slight increase (compared to the Commission's initial proposal) in the rural development envelope was rather well received.
Some delegations also reportedly protested against cuts in some priority programmes, such as defence, migration and border control.
Some countries would have welcomed the elements of the document providing for the end of budget discounts or rebates in 2021. But questions were raised about keeping possible “flat-rate reductions” in brackets.
Italy and Portugal, for example, are reported to have criticised the envisaged reduction in the budget for the euro area.
On own resources, Hungary and Poland would have criticised the ideas contained in Finland's document (such as the plastic tax), while other countries would have liked a more complete basket of new own resources.
Finally, some ‘net contributors’ to the EU budget and France welcomed the elements of the negotiating box establishing conditionality between the EU budget and respect for the Rule of law.
Ursula von der Leyen is concerned about drastic cuts. “I am concerned about the drastic cuts” in the negotiating box presented by Finland, the new Commission President said at a press conference on Wednesday. She cited Frontex, defence, digital and “efforts to green the economy” as sectors that could be affected by these cuts.
Mrs von der Leyen acknowledged that the Finnish proposal showed “how difficult the negotiations on the MFF are”. These negotiations will now be led by the new President of the European Council, Charles Michel, “with the aim of reaching an agreement early next year”, she hoped.
To take into account both the departure of the United Kingdom, a net contributor, and its priorities (security, migration, digital, climate), the Commission had proposed setting contributions at 1.114% of EU GNI.
To consult the negotiating box proposed by the Finnish Presidency: http://bit.ly/34HwPYP (Original version in French by Lionel Changeur)