Michael Roth, the German Minister of State for Europe, told MEPs on Tuesday 1 September that there was no room for manoeuvre in the Council of the EU “to make far-reaching changes” to the agreement on the EU’s 2021-2027 Multiannual Financial Framework (MFF) (see EUROPE 12550/1).
“Member States’ room for manoeuvre is quite limited”, he said during a debate in the European Parliament Committee on Budgets.
He noted that the United Kingdom’s departure from the EU and the loss of its contribution to the EU budget meant that conditions this time were different from those during previous MFF negotiations.
“I don’t want to take anyone hostage”, Roth said in response to criticism from some Members of Parliament that the Council of the EU was not flexible enough to make changes to the MFF agreement and the Recovery Plan. “You decide by a majority vote, the Council decides unanimously”, he stated.
“Everyone has had to give something up”, the German minister observed in relation to the concessions made by EU leaders at the European Council on 21 July, which resulted in an agreement on the MFF and the European Recovery Plan (see EUROPE 12549/1).
In response to criticism, the German minister clarified that funding for Erasmus+ will increase by 50% and for Horizon Europe by 25%.
He believed that, with regard to own resources, “we have taken a big step forward” by deciding to make radical changes to the system by introducing a new contribution calculated on the basis of non-recycled plastic packaging waste from 2021.
He also welcomed the fact that, for the first time, “an agreement has been reached on Rule of law conditionality to guarantee that the budget is protected”. Roth said that this was a great achievement, a turning point. He indicated that the European Parliament and the Council of the EU needed to reach a compromise on implementing the Regulation in question.
European Parliament opinion on own resources. On 1 September, the European Parliament Committee on Budgets adopted (by 33 votes in favour to five against, with two abstentions) the report by José Manuel Fernandes (EPP, Portugal) and Valérie Hayer (Renew Europe, France) on the decision relating to own resources. The European Parliament vote will take place during the plenary session between 14 and 17 September.
The European Parliament opinion envisages the introduction of a ‘basket’ of new own resources to fund the costs of repaying the debts incurred under the European Recovery Plan. New revenues would be introduced according to a legally binding timetable.
In addition to a new national contribution calculated on the basis of non-recycled plastic packaging waste, MEPs are recommending: - from 1 January 2021, an Own Resource based on revenue stemming from the EU Emissions Trading Scheme; - from 1 January 2023, Own Resources based on the revenue from the taxation of digital services and a carbon border adjustment mechanism; - from 1 January 2024, an Own Resource based on a Financial Transaction tax; - from 1 January 2026, an Own Resource based on the share of taxable profits allocated to each Member State in accordance with the Union’s rules on the Common Consolidated Corporate Tax Base. (Original version in French by Lionel Changeur)