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Europe Daily Bulletin No. 12831
Contents Publication in full By article 18 / 30
ECONOMY / Budget

EU Council and European Parliament struggle to agree on elements of EU 2022 budget

EU finance ministers were struggling on Friday 12 November to reach a compromise with the European Parliament over the main elements of the EU’s 2022 budget (see EUROPE 12828/14).

On Friday morning, the European Commission presented a second version of the draft conclusions on next year’s 2022 budget, which has been criticised by several delegations. 

In Finland’s opinion, for example, the second compromise “is going in the wrong direction”.

The net contributor countries to the EU budget have requested to not go beyond the EU Council’s initial position in July regarding the level of payment appropriations. The impact of the UK’s exit from the EU is reflected in an increase in national contributions, France also noted.

Decommitment. The Council of the EU has asked that from now on, Article 15.3 of the Financial Regulation on commitment appropriations (forHorizon Europe) corresponding to the amount of decommitments following the non-implementation of research projects is not used, as the European Parliament would like, but instead it is used at the end of the Multiannual Financial Framework (MFF).

Administrative expenses. Requests from the European Parliament for an increase in staffing levels were refused by the Council of the EU in line with the effort to stabilise staffing levels in the institutions.

Next Generation EU. With regard to the amounts not being used for interest on the bonds issued for the Next Generation EU programme, delegations emphasised that these amounts should be used for to repay these bonds early, in accordance with the decision on own resources.

Reserve for emergency aid. Some delegations asked for a more precise estimate of needs before transferring a proportion of this reserve to humanitarian aid, in line with the Commission’s wishes. Other countries, such as Spain, have instead supported the compromise that was presented by the Commission regarding the use of the EU Solidarity Fund. 

Budget Commissioner Johannes Hahn proposed in the second draft conclusions: + €50 million (compared to the European Commission’s draft budget plan) for the Horizon Europe programme, + €10 million for the single market programme and + €40 million under article 15.3 of the financial regulation; an increase of €50 million for the European Neighbourhood, Development and International Co-operation Instrument (NDICI); + €341 million for humanitarian aid (with the same amount to be made available by a transfer from the reserve for emergency aid).

At the time of going to press, a third draft of the conclusions on the 2022 budget was being discussed in the conciliation committee between the Presidency of the EU Council, the European Commission and the European Parliament team led by rapporteur Karlo Ressler (EPP, Croatia).

The EU Council session was due to resume after the European Parliament/Council Conciliation Committee. If an agreement is reached, the Council of the EU will approve it; if not, it will decide on the next steps.

The conciliation period ends on 15 November at midnight. (Original version in French by Lionel Changeur)

Contents

SECURITY - DEFENCE
EXTERNAL ACTION
SECTORAL POLICIES
ECONOMY
SOCIAL AFFAIRS
EUROPEAN PARLIAMENT PLENARY
BREACHES OF EU LAW
EU RESPONSE TO COVID-19
NEWS BRIEFS