On Thursday 1 February, the heads of state or government of the European Union reached unanimous agreement on a revision of the 2021-2027 Multiannual Financial Framework (MFF).
The EU27 confirmed that the EU budget extension will include macro-financial aid for Ukraine to the tune of €50 billion (€17 billion in grants and €33 billion in loans), despite concerns of renewed opposition from Hungarian Prime Minister Viktor Orbán (see EUROPE 13314/2).
Up until the eve of the summit, Mr Orbán had continued to lay down his conditions for an agreement between the EU27, to the point where tensions were running high between certain national delegations in the EU Council (see EUROPE 13331/26).
According to several sources, a compromise with Mr Orbán had been initiated by the President of the European Council, Charles Michel, and the French President, Emmanuel Macron, on Wednesday evening (see EUROPE 13340/5).
It was said to have been approved at a restricted committee meeting attended by the Presidents of the European Commission, the European Council, the French Republic, the German Chancellor, the Italian Prime Minister and the Hungarian Prime Minister. Hence the swift announcement of the agreement before midday on Thursday.
“All 27 leaders agreed on an additional €50 billion support package for Ukraine within the EU budget. The EU is taking leadership and responsibility in support for Ukraine; we know what is at stake”, said Mr Michel late this morning on the X social network.
However, in the conclusions it adopted, the European Council said it plans to hold an annual exchange of views on the implementation of the Ukraine Facility. And, “if needed, in two years”, it will invite the European Commission “to make a proposal for review in the context of the new MFF”. This request for a review would require the unanimous agreement of the EU27, but would have no impact on the ceiling of the current Multiannual Financial Framework.
In so doing, Mr Orbán described the outcome of the negotiations as “mission accomplished”, on X.
“There is an extra €10 billion for immigration, including €8 billion for the external dimension and forecasting migratory flows”, welcomed the Italian Prime Minister, Giorgia Meloni.
Additional budget. The extension of the EU budget approved by the EU27 will mobilise a total of €21 billion in fresh money.
In addition to aid to Ukraine, the package includes: - €2 billion for border management; - €7.6 billion for neighbourhood policies; - €1.5 billion for the ‘Strategic Technologies for Europe’ platform; - €2 billion for the flexibility instrument; - €1.5 billion for the Solidarity and Emergency Aid Reserve (SEAR).
In addition, redeployments totalling €10.6 billion are planned. They will come from the following instruments: - €4.5 billion will be released from the Neighbourhood, Development and International Cooperation Instrument (NDICI); - €2.1 billion from the ‘Horizon Europe’ research and innovation programme; - €0.6 billion from the Brexit Adjustment Reserve; -€1.3 billion from the European Adjustment Fund; - €1.1 billion from direct management of the Common Agricultural Policy and Cohesion funds; - €1 billion from the health programme (‘EU4Health’).
Towards interinstitutional negotiations. The amounts proposed by the Member States are three times lower than the European Commission’s initial proposal in June (see EUROPE 13205/1) and that of the European Parliament (see EUROPE 13263/7).
“Our MFF is pressed to its limits, and this agreement pulls money out of the programmes that our citizens depend on - on some of the most tangible benefits of the EU, our European Health Union or Horizon - especially with European elections in sight”, said the President of the European Parliament, Roberta Metsola, at a press conference following the summit.
Asked about the redeployment of €1 billion from the CAP to finance the political priorities set during the revision of the MFF, Charles Michel replied that the amounts negotiated between the Heads of State “significantly” increased the resources of the current MFF.
The revision of the budget will still have to be formalised legally, and in particular be the subject of a vote of consent, without amendments, at the plenary session of the European Parliament, probably between 26 and 29 February. In the meantime, interinstitutional negotiations (‘trilogue’) with the EU Council will take place next week in Strasbourg.
“Negotiations start next week, we have no time to lose”, said Jan Olbrycht, the European Parliament’s chief negotiator on the revision of the MFF.
At the same time, the European Council’s agreement should make it possible to finalise the interinstitutional negotiations on the ‘STEP’ platform and on the ‘Ukraine Facility’.
The ultimate aim is to enable the first payment to be made to Ukraine at the beginning of March.
To see the conclusions of the European Council: https://aeur.eu/f/aoz (Original version in French by Bernard Denuit with the editorial staff)