On Monday 14 December, the EU Council adopted, by written procedure, the legislative acts on the EU Multiannual Financial Framework (MFF) for 2021-2027, the Economic Recovery Plan and the regulation linking the disbursement of EU funds to respect for the Rule of law. The European Parliament will endorse the package in plenary on Wednesday 16 December (see EUROPE 12621/2).
The decisions were made possible once the Hungarian and Polish vetoes on adopting the MFF and the Recovery Plan were lifted.
Own resources. The EU Council endorsed the own resources decision (https://bit.ly/3mhudbW ), which sets out how the EU budget will be funded. In order for the decision to come into effect, it has to be approved by the 27 EU Member States, in accordance with their constitutional requirements. Adoption of the decision enables the ratification process to begin. The decision will increase the maximum amount in resources that Member States can call on to fund EU expenditure (own resources ceiling) in any given year from 1.20 to 1.40% of the EU27’s Gross National Income (GNI). In exceptional circumstances, the Commission will be empowered to temporarily borrow up to €750 billion at 2018 prices on the capital markets to deal with the consequences of Covid-19. At the same time, the own resources ceiling will be exceptionally and temporarily increased by a further 0.6 percentage points to cover all EU liabilities arising from the loans until all funds borrowed have been repaid.
The EU Council also adopted a regulation to establish the EU Recovery Instrument (€390 billion in funds and €360 in loans to the Member States).
Conditionality. The EU Council adopted its position on the draft regulation on a general regime of conditionality for the protection of the Union budget at first reading. The document establishes a link between the disbursement of EU funds and the Rule of law (https://bit.ly/34eLxIC ).
The EU Council also forwarded to the European Parliament for approval the regulation laying down the 2021-2027 MFF (https://bit.ly/37fLVs4 ). European Parliament approval is required before the EU Council can formally adopt the next Multiannual Financial Framework.
Lastly, the EU Council approved the draft Interinstitutional Agreement on budgetary discipline, cooperation in budgetary matters and sound financial management, and the joint declarations arising from the agreements on the MFF and the Recovery Plan.
Budget for 2021. The EU Council adopted its position on the second draft budget plan for 2021, which was presented by the Commission last week. The draft budget plan reflects the common agreement reached on 4 December. (Original version in French by Lionel Changeur)