MEPs approved the draft report by Johan Van Overtveldt (ECR, Belgian) on the impact on the EU 2024 budget of the increased borrowing costs of the European Union Recovery Instrument (EURI) on Wednesday 10 May by a large majority (434 votes in favour, 99 against and 89 abstentions).
Assuming a gradual increase in borrowing interest rates from 0.55% in 2021 to 1.15% in 2027 (for the Multiannual Financial Framework (MFF) 2021-2027), €15 billion per year would be needed to cover the borrowing costs related to the EU’s recovery financing instrument (see EUROPE 13171/26).
If no action is taken, this increase in borrowing costs will have an impact on funding programmes such as Erasmus+, EU4Health, ‘Citizens, Equality, Rights and Values’ and Creative Europe, as high inflation reduces the real value of the overall EU budget, warns the European Parliament.
The European Commission is expected to present a revision of the Multiannual Financial Framework in June, including a structural solution for financing the European Union Recovery Instrument.
To see the report: https://aeur.eu/f/6tn (Original version in French by Pauline Denys)