In Strasbourg on Thursday 15 December, the European Parliament called for the creation of a ‘European Sovereignty Fund’ to ensure the Union’s strategic autonomy and reduce its dependence on third countries in key sectors.
In adopting (366 votes in favour, 128 against and 55 abstentions) the report by Jan Olbrycht (EPP, Polish) and Margarida Marques (S&D, Portuguese) on the Multiannual Financial Framework (MFF) for 2021-2027, MEPs want the European Commission to provide “additional funds” for the ‘European Sovereignty Fund’ and to integrate it into the MFF, “thus allowing its full control by the European Parliament”. The European Parliament also considers that the MFF ceilings should be adapted to take account of this mechanism (see EUROPE 13084/10).
The European Parliament asks the Commission to revise the MFF in mid-2023, in particular because of policy initiatives with significant budgetary implications, such as the ‘European Hydrogen Bank’ or the SME package.
By adopting an amendment by several MEPs, the European Parliament reiterates its call for an urgent increase in the funding of the European Child Guarantee, with a dedicated budget of at least €20 billion (2021-2027).
The European Parliament calls for a rapid revision of the MFF in order to increase EU defence instruments, such as the European Defence Fund, military mobility and the future EU defence joint procurement mechanisms (instruments to strengthen the European defence industry through joint procurement and the European Defence Investment Programme), “as long as they strengthen the European defence industrial and technological base and ensure European added value”.
The Commission is cautious. “The Commission will carefully assess the sustainability of the expenditure ceilings and subceilings of the current MFF, because the Union budget must continue enabling us to deliver on our policy priorities,” said Commissioner for Budget Johannes Hahn the day before.
He acknowledged that “we must also factor in our joint commitment on the repayment of Next Generation EU and our ambitions about the new own resources”.
The commitment to review the MFF is not a commitment to propose a revision, the Commissioner said. “It is too early to speculate or foresee any such initiative. We will need to assess our options carefully, bearing in mind that the long-term budget agreed in 2020 lasts until 2027”, the Commissioner insisted.
He acknowledged the need for action because of rampant inflation. “In this respect, something must be done. I fully agree with all those who have said that we need to see to what extent we can make the budget more flexible or create something that allows us to react faster, more quickly to possible future developments.” (Original version in French by Lionel Changeur)