login
login
Image header Agence Europe
Europe Daily Bulletin No. 12558
EU RESPONSE TO COVID-19 / Budget/economy

EU Council and European Parliament are working on a form of interinstitutional agreement including own resources for the Recovery Plan

The three EU institutions made progress, at their meeting on Friday 11 September, in their negotiations to finalise the modalities of the Post-Covid-19 Economic Recovery Plan and the EU’s Multiannual Financial Framework (MFF) for 2021-2027.

This was the third such meeting between the German Council Presidency, the negotiating team of the European Parliament and the European Commission, represented by Budget Commissioner Johannes Hahn (see EUROPE 12554/2).

The fourth meeting has been scheduled for 18 September. Others should follow, if necessary, in order to finalise a compromise between institutions.

Own resources. The EU Council has reportedly shown openness by agreeing to negotiate with the European Parliament an interinstitutional agreement (or an addendum to the existing 2013 agreement on budgetary discipline) providing for a binding timetable on new own resources for the EU budget. MEPs would also like to include certain principles, such as the repayment of part of the debt from the Recovery Plan using own resources for the benefit of the Community budget.

Members confirmed the progress that has been made. “We are continuing the trilateral negotiations with the German Council Presidency. The latter has changed things today and this is a positive sign. There was progress on the principle of a binding roadmap for the three institutions on new sources of EU revenue (own resources) and on reinforcements of future-oriented EU programmes”, said the members of the Parliament negotiating team on the MFF and own resources.

A source close to the negotiations told EUROPE that intensive work has been under way since Monday 7 September at expert level between Parliament, the Commission and the EU Council. “Delegations have narrowed down the differences and are working on a joint road-map. The idea that such a road-map can be referenced in the interinstitutional agreement is being explored by both sides. But no decision has been taken yet”, the source reports.

On the EU’s flagship programmes, Parliament calls for “real increases” for Horizon 2020, Erasmus+ and the health programme.

The German Presidency notes "progress was made on issues like own resources, governance of NextGenerationEU and horizontal issues. Differences remain including on top up” increases in appropriations for certain programmes.

Parliament continues to call for a mechanism to protect the EU budget against failures in the rule of law.

On 9 September, S&D Group President Iratxe García sent a letter to Commission President Ursula von der Leyen calling for a “clearly defined rule of law cross-compliance regulation covering the full scope of Article 2 of the Treaty”, which sets out the values of the EU. The EU Council must agree on this text before negotiating with the European Parliament. (Original version in French by Lionel Changeur)

Contents

ECONOMY - FINANCE - BUSINESS
EU RESPONSE TO COVID-19
SECTORAL POLICIES
EXTERNAL ACTION
INSTITUTIONAL
SOCIAL AFFAIRS
NEWS BRIEFS
CALENDAR
CALENDAR EXTRA