MEPs were almost unanimous in welcoming a historic agreement and a victory for the Assembly, in plenary on Wednesday 11 November, on the previous day’s agreement on the Multiannual Financial Framework (MFF) 2021-2027 and the European Economic Recovery Plan (see EUROPE 12599/2). The compromise reached on the link between the disbursement of EU funds and respect for the Rule of law was also praised by the European Parliament.
“I think that we have, all together, made history”, said Commissioner for Budget Johannes Hahn. The Commission has committed itself, in a declaration, to present a long-term budget review by 1 January 2024 and, if necessary, a proposal for a revision, the Commissioner also said.
“The incredible reception given to these two historic agreements shows that when we work together to build a Europe that protects its citizens, things work well”, said Eider Gardiazabal Rubial (S&D, Spain)
For Valérie Hayer (Renew Europe, France), the addition of €16 billion is “an unprecedented victory. In 2006, four billion euros. In 2013, zero billion euros of new money”. She welcomed the fact that the European Parliament had “tripled the budget for health, where Member States saw it as a national competence that should remain national, even in times of a pandemic. We have corrected this nonsense”.
Rasmus Andresen (Greens/EFA, Germany) welcomed, among other things, the fact that nature protection had become a budgetary objective.
Link to the Rule of law. The President of the European Parliament, David Sassoli, told the press on Wednesday 11 November that the EU cannot “go back” on the agreement to make the payment of EU funds conditional on respect for the Rule of law, a mechanism denounced by Hungary. “It is a great novelty, it is a budget that protects the values of the European Union. The EU cannot turn back the clock”, Mr Sassoli warned at a press conference. However, he said that citizens receiving the funds would not be penalised, “despite the fact that governments may be guilty of violations or be subject to sanctions”.
Own resources. Mr Sassoli also welcomed the introduction of new sources of revenue for the EU (plastic tax as of next year, followed by carbon market reform, digital tax, financial transaction tax). “We finally have a Europe capable of self-financing”, he said, adding that there was a “ clear timetable” for the Commission to make proposals to introduce these taxes.
“We are finally going to have a carbon border adjustment mechanism, we are finally going to have a tax on digital giants, we are finally going to have a tax on financial transactions”, Ms Hayer said.
For José Manuel Fernandes (EPP, Portugal), it was essential to have new own resources in order to protect the future budget and not to cut Community programmes because of the costs of the Recovery Plan.
The Conference of Presidents gives the green light. The day after the agreement, the Conference of Presidents of the Parliament’s political groups assessed and approved the political agreement reached on the MFF and the new own resources. The leaders of the political groups also stressed the importance of the political agreement reached between the Parliament and the EU Council on the Regulation on the Rule of law.
In addition to the arrangements for a €16 billion increase in expenditure, the interim agreement also provides for: - a joint statement on the costs and interest repayments of the Recovery Plan in the MFF 2021-2027 to ensure that expenditure covering the financing costs of the Recovery Plan does not reduce EU programmes and funds; - a legally binding roadmap for the introduction of EU own resources; - strengthened control of the Recovery Plan funds by the budgetary Authority, ensuring that democratic accountability is included in the Interinstitutional Agreement; - a guaranteed role for the European Parliament in new proposals based on Article 122 of the Treaty with potentially important implications for the EU budget; - a statement by the Commission on programme-based contributions to climate action.
The Presidents of the institutions insist on entry into force on1 January 2021. The President of the European Commission, Ursula von der Leyen, held a fifth videoconference with David Sassoli and Chancellor Angela Merkel (meeting under Article 324 of the Treaty), whose country holds the Presidency of the EU Council, on Wednesday 11 November. The three Presidents welcomed the agreements on the MFF, the Recovery Plan and the Rule of law mechanism. According to them, “the time has now come to finalise all the necessary steps to allow the MFF and the Recovery Plan to come into effect on 1 January, 2021”. They called on the European Parliament and the EU Council to formally approve the agreements as soon as possible. “This will pave the way for the formal adoption of all necessary legislation and for national ratifications, where appropriate”.
Plenary vote on 25-26 November? According to an indicative timetable, the Committees on Budgets and Constitutional Affairs could adopt the opinions on the MFF 2021-2027 and the reports on the Interinstitutional Agreement on 23 November. The plenary vote could thus take place on 25 or 26 November. (Original version in French by Lionel Changeur)