Representatives of the German Presidency of the Council of the European Union, the European Parliament and the European Commission kicked off on Thursday 27 August a series of inter-institutional meetings aimed at finalising agreement on the EU’s Multiannual Financial Framework (MFF) for 2021-2027 and on the modalities of the EU’s Economic Recovery Plan following the Covid-19 crisis.
The three European institutions will meet three more times in September: on 7 September (for discussions on MFF amounts and own resources), 11 September (governance and flexibilities) and 18 September. The aim is to reach an interinstitutional compromise as soon as possible.
“The constructive first round of talks on the future EU budget between the EU Council, the EP and the Commission has just ended. The atmosphere was good, everyone is aware of the urgency, but there is still a ways to go. The heavy lifting starts now!” said the German EU Council Presidency after this first meeting.
Parliament reiterated its demands for increases in appropriations for certain priority EU programmes, own resources, the governance of the recovery fund and, of course, the protection of the EU’s financial interests in the event of a breach of the Rule of law. In its view, there will be no agreement on the 2021-2027 MFF as long as the question of a link between the disbursement of EU funds and respect for the Rule of law is not settled (see EUROPE 12546/2).
Parliament is of the opinion that this mechanism should be activated by an EU Council decision adopted by a reverse qualified majority of Member States, i.e. when a Commission proposal is not rejected by a qualified majority of countries.
The Council of the EU will first have to agree internally on the proposal linking EU funds to respect for the Rule of law.
The European Council’s agreement on this mechanism, which refers to qualified majority voting, is to be transformed into a legislative text based on the May 2018 proposal. The EU Council will try to find a compromise on the regulation in question, which will then have to be accepted by Parliament.
With regard to own resources, Parliament is calling for a “package” of new own resources to be integrated into the EU budget from 1 January 2021. The European Council is referring initially only to the creation of a tax on non-recyclable plastic waste.
Finally, Parliament wants to increase the allocations for EU flagship programmes on climate protection, digital transition, health, youth and research. But the political room for manoeuvre within the EU Council on these sums seems very small.
A European diplomat recalled that the European Council agreement of 21 July “is the result of very difficult and complex negotiations among EU Member States”. Adding that: “Many leaders have only been able to agree to the deal with the greatest of reservations. If you changed one of the building blocks of this hard-won compromise now, the stability of the whole structure would be in danger”. (Original version in French by Lionel Changeur)