The European Commission is expected to present its initial ideas on the revision of the Multiannual Financial Framework (MFF) for 2021-2027 (see EUROPE 12470/1) to EU leaders, who will meet by videoconference on Thursday 23 April to discuss ways to revive the economy after the coronavirus crisis.
The President of the European institution, Ursula von der Leyen, has already stressed that the next MFF is the right instrument to make the huge investments needed to revive the economy after the coronavirus crisis (see EUROPE 12467/4). “Thousands of billions of dollars of investment” will be needed, she said.
On the basis of guidance from the Twenty-Seven, the Commission will make a formal proposal for a revised MFF at the end of April.
Mrs von der Leyen will on Thursday present to EU leaders “the basis of our ideas on the recovery plan and the role that the MFF must play”, a spokesman for the institution explained on Monday 20 April. Only after the video conference of the Heads of State or Government will the Commission adopt “a specific proposal” for revising the draft MFF, he added.
The Commission would envisage a seven-year MFF, as in its May 2018 proposal, with a significant part of the recovery plan envelope to be mobilised at the beginning of the cycle, over the first two years (‘frontloading’). It is considering drawing inspiration from the investment plan for Europe, known as the ‘Juncker Plan’ (2015-2020), through bonds that it could subscribe to on behalf of the EU and for which the EU Member States would act as guarantors.
To this end, the Commission is considering raising the EU own resources ceiling (see EUROPE 12464/25) from 1.20 to 2% of EU Gross National Income (GNI).
Spanish proposal. Spain, in particular, has proposed in a paper to raise the ceiling of the EU's own resources and to maintain the same level, after 2020, of EU funding for cohesion policy and the common agricultural policy (see EUROPE 12470/1).
For Madrid, the total volume proposed by the Commission in May 2018, i.e. 1.114% of the Twenty-Seven’s GNI, should form the basis for an agreement.
Last February, a level of 1.07% of GNI was considered too high by those knows as ‘frugal’ Member States, led by the Netherlands.
See the Spanish proposal: https://bit.ly/3513Yjf (Original version in French by Lionel Changeur, with Mathieu Bion)