“It is in all of our interests to reach a swift agreement on the multi-annual financial framework” (MFF) for 2021-2027, said EU Budget Commissioner Johannes Hahn on Wednesday 24 June.
In a speech before the European Parliament’s Committee on Budgets, the Commissioner presented the draft EU budget plan for 2021 in detail (see EUROPE 12513/3).
“A swift agreement on the MFF will allow for a smooth adoption of the draft budget – so that we can implement programmes as of 1 January 2021”, he said.
He said that once political agreement on the MFF had been reached, the draft 2021 budget plan can be adapted, if necessary, to the outcome in an amending letter.
The rapporteur on the 2021 budget, Pierre Larrouturou (S&D, France), said the European Parliament wanted to play its full role in the recovery plan. However, “the amounts that will form part of the 'Next Generation EU' were not subject to the negotiations between the two arms of the budgetary authority. The European Parliament wants to control the use of these funds. The European Parliament cannot be excluded from this negotiation”, stressed Mr Larrouturou.
Contingency plan. The rapporteur on the 2021 budget has asked the Commission to present a 'contingency plan' on the MFF, should negotiations at EU leaders' level fail.
Mr Hahn stressed the need to focus on the MFF negotiations. He expressed the hope that the European Council would reach agreement on the MFF 2021-2027 in a single meeting on 17 and 18 July.
Climate. Mr Larrouturou pointed out that the European Parliament wants 30% of the EU 2021 budget to be spent on climate change, while the Commission proposes 25%. Hahn said €1.5 billion was also earmarked for the Just Transition Fund, which will be supplemented by €8 billion as part of the Next Generation EU.
David Cormand (Greens/EFA, France) regretted the lack of ambition regarding climate change and called on the Commission to bank on 30% of the money being earmarked for the fight against climate change and 10% for biodiversity. “Our proposal is ambitious” with regard to climate change, Hahn said.
Own resources. New ways of providing the EU budget with its own resources are needed to “finance the repayment” of the recovery plan, Mr Hahn emphasised (see EUROPE 12512/18). In order to be accepted by EU citizens, these own resources must be linked to political priorities (climate, fairness in taxation), the Budget Commissioner added.
Agriculture. Mr Cormand deplored the reduction in the agricultural budget in the draft budget plan for 2021. The funds set aside are “sufficient”, Hahn said. The increase in funding for the second pillar (+€15 billion for rural development), announced in the proposal for the next MFF, will take place from 2022 onwards, the Commissioner said. (Original version in French by Lionel Changeur)