After an informal meeting between representatives of the three EU institutions concerned (EU Council, European Parliament, Commission) on Wednesday 14 October, it was decided not to hold a formal negotiation meeting on the EU’s Multiannual Financial Framework (MFF) for 2021-2027 and the EU Economic Recovery Plan (see EUROPE 12580/3) at this stage.
It is possible, according to sources in Parliament, that a new political meeting between the three institutions will be held next week, depending on indications that may emerge from the European Council meeting on Thursday 15 and Friday 16 October. Differences continue to exist on the envelopes of the EU flagship programmes, on the link between the budget and respect for the Rule of law and on the EU’s own resources to finance the Recovery Plan.
The subject is not officially on the agenda, but European Parliament President David Sassoli plans to discuss the MFF and the Recovery Plan at the opening of the EU summit on Thursday 15 October (see other news).
The Parliament President may be disappointed by the EU Council’s proposals on EU programmes and the link between payment of budget appropriations and respect for the Rule of law. He could call on Member States to rapidly adopt the decision on EU own resources, which gives substance to the Recovery Plan, in order to ensure its entry into force in early 2021. The own resources decision requires unanimous voting in the EU Council and must be ratified by the national parliaments, which takes time.
“There are no plans to have discussions on this specific issue at this summit. Because discussions are continuing with Parliament. We have a legal process under way, we do not see the need for the European Council to intervene at this time”, an EU diplomatic source said on Wednesday 14 October.
However, as soon as an agreement has been reached between the institutions, “we can go back to the European Council to see if it is acceptable by all or by a qualified majority” of Member States, the source continued.
Another possible scenario: another source considered that the possibility of convening a European Council on the MFF and the issue of ‘Rule of law’ conditionality should not be excluded, given the divergences.
Poland and Hungary do not want this Rule of law conditionality, while the Scandinavian countries and the Netherlands make it a condition for approving the ‘own resources’ decision to implement the 750 billion euros Recovery Plan.
Various offers on EU programmes. The representatives of the institutions discussed on Wednesday: - Commission proposals on ‘technical scenarios’ (https://bit.ly/3dCKwxz ) to increase funding for 15 EU flagship programmes; - Parliament’s offer (https://bit.ly/3lIUCQ8 ) of a 39 billion euros increase in appropriations for these programmes; - and concessions accepted by the German EU Council Presidency (an increase of between 5 and 9 billion euros). “There can be no new money”, a European diplomatic source hammered home on Wednesday.
Another European diplomatic source specifies that, in the conclusions of the July European Council, “there are margins, we can look at how to mobilise them; there are about 7 billion euros”. (Original version in French by Lionel Changeur)