At the European Council meeting on Thursday 26 October, the EU27 will debate the mid-term review of the 2021-2027 Multiannual Financial Framework (MFF).
In June, the European Commission proposed an additional €65.8 billion to meet the unforeseen costs generated by the war in Ukraine and its consequences, such as inflation and the energy crisis, but also to finance the management of migration and challenges abroad (see EUROPE 13205/1).
This is the very first time that the 27 Heads of State or Government of the Member States of the European Union will be debating the European Commission’s proposal in depth. The European Parliament, for its part, has already adopted its position on the revised MFF (see EUROPE 13263/7) as well as a budget proposal for 2024 aligned with this revision (see EUROPE 13274/13).
The technical work has already been launched in the Council of the EU, which has expressed the reluctance of Member States to contribute more to the EU budget, despite the fact that several EU countries recognise “that all the reserves of the MFF have been exhausted and that the EU needs new money”, as one European diplomat put it.
Although no decision is expected at this stage, the aim of this discussion at European leaders’ level is to present positions and define priorities, “which opens the way for negotiations. This is part of the process”, said another diplomatic source.
A majority of Member States reiterated that aid to Ukraine was their number one priority (see other news). As part of the revision of the MFF in June, the Commission therefore proposed the creation of a €50 billion Ukraine Facility.
A group of Member States would be more in favour of redeploying the existing budget for other funding priorities, namely managing the EU’s external borders and challenges abroad, but also responding to humanitarian crises and natural disasters, responding to the increased borrowing costs for Next Generation EU, promoting EU competitiveness and critical technologies, and funding administration.
This means “taking a closer look at spending”, explains another diplomat. “Funds have been allocated for certain programmes but have not yet been spent.” Some are therefore considering ‘frontloading’ these funds. This represents a debate at the technical level, but several diplomats are saying that it is necessary at this stage to let the Heads of State and Government set a direction.
Some people are also wondering what position the President of the European Council, Charles Michel, intends to adopt.
Following these preliminary discussions, the European Council should formally invite the Council of the EU to continue negotiations with the aim of reaching an agreement by the end of the year.
See the European Council's draft conclusions of October 24: https://aeur.eu/f/99d (Original version in French by Pauline Denys with the editorial staff)