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Europe Daily Bulletin No. 12577
EU RESPONSE TO COVID-19 / Budget/economy

European Parliament rejects EU Council’s insufficient offer on increase in funding for flagship programmes 2021-2027

The European Parliament expressed its disappointment, on Thursday (8 October), at the German EU Council Presidency’s suggestions on increasing funding for certain EU flagship programmes for 2021-2027.

Representatives of the EU institutions held a seventh meeting on Thursday afternoon to try to finalise the modalities of the EU 2021-2027 Multiannual Financial Framework (MFF) and the EU Recovery Plan after the effects of Covid-19 (see EUROPE 12574/3).

But Thursday’s discussions were unsuccessful. “Talks are suspended tonight. Nothing new from the German EU Council Presidency”, said one of the European Parliament negotiators, José Manuel Fernandes (EPP, Portugal), after the meeting. 

Eighth meeting on 14 October. The German Presidency of the EU Council believes, on the contrary, that the European Parliament has “missed the opportunity to make progress in the negotiations on the MFF. The EU Council Presidency’s overall compromise offer is maintained. The next round of trilateral negotiations is now scheduled for Wednesday, 14 October”, says the German Presidency. 

Budget Commissioner Johannes Hahn said that “we need to settle institutional differences for the sake of the people and businesses who rely on us to give them the support they urgently need”. The Commission announced that it will present compromise scenarios on 14 October. 

Johan Van Overtveldt (ECR, Belgium), Chair of the European Parliament’s Committee on Budgets, responded rather curtly, on Thursday, to a letter from German Ambassador to the EU Michael Clauß, giving an update on the state of negotiations on the MFF and the Recovery Plan.

Progress is noted on Own resources and the role of the budgetary authority in the Recovery Plan, but the European Parliament says it “looks forward to the start of our talks on the Rule of law(see EUROPE 12575/17 ). 

He says he is “disappointed” by what the ambassador proposes on EU programmes. 

Contrary to what you suggest, strengthening the flagship programmes without touching the ceilings of the MFF, or without placing the costs for Next Generation EU outside the ceilings of the MFF”, writes Van Overtveldt.

The European Parliament requests new money and to place funds outside of the MFF to free up some margin. 

According to the Chair of the Committee on Budgets, the German Presidency’s suggestions would result in a reduction in funding for other EU programmes and a reduction of “already very tight” margins over the next seven years.

Therefore, margins and flexibility cannot be an answer to our request for top-ups”, the MEP said.

The European Parliament presented an offer of €39 billion worth of fresh top-ups, the letter says, only 2% of the €1.8 trillion package agreed on by the leaders.

Link to the letter: https://bit.ly/3nvGgV6 (Original version in French by Lionel Changeur)

Contents

EU RESPONSE TO COVID-19
SECTORAL POLICIES
EUROPEAN PARLIAMENT PLENARY
EXTERNAL ACTION
CULTURE
INSTITUTIONAL
COURT OF JUSTICE OF THE EU
NEWS BRIEFS