The 10th meeting among the EU Council, the European Parliament, and the European Commission on the 2021–2027 Multiannual Financial Framework (MFF) and the Economic Recovery Plan ended “with hardly any progress” on the evening of Wednesday, 28 October.
The European Parliament’s ideas for unlocking additional funds for 15 EU flagship programmes (Horizon 2020, Erasmus+, InvestEU, etc.) were rejected by the German Presidency of the Council of the EU (see EUROPE 12591/5). It also appears that it will be difficult to keep to the objective of having the Recovery Plan come into force on 1 January 2021.
“The trilateral negotiations on the EU Budget and recovery package ended with hardly any progress tonight. Negotiations continue to be very difficult; substantial gaps remain. Talks continue on a technical level”, indicated the German Presidency of the Council of the EU.
The six European Parliament negotiators declared in a press release that they had made “a breakthrough proposal” on “the critical issue of how to count the costs of common debt in the next long-term EU budget”. A proposal that the EU Council “rejected blindly”, according to the European Parliament representatives.
Parliament is calling for a €39 billion increase in the budget for important EU programmes, including €12.9 billion by counting the Recovery Plan interest costs above the MFF ceilings. But this suggestion reportedly conflicts with the European Council agreement of 21 July.
“If we start to change the ceilings, it will contravene the European Council’s conclusions. And we would risk reopening Pandora’s box”, a European source pointed out on Thursday.
The EU Council would rather this €12.9 billion go back into the MFF. In addition to flexibility mechanisms, it agrees to an increase of €10 billion for EU programmes.
‘Rule of law’ conditionality. Talks also continue on the introduction of new own resources into the EU budget and ‘rule of law’ conditionality.
A fourth trilogue on the proposal aiming to establish a link between the disbursement of EU budget funds and respect for the rule of law took place on Thursday, 29 October. Despite significant progress, the parties did not reach a compromise.
A fifth trilogue on this sensitive issue (EU Council, European Parliament, and European Commission) will take place next week (see EUROPE 12591/9). (Original version in French by Lionel Changeur)