The European Commission has reiterated its desire to structure the next Multiannual Financial Framework around three main pillars (Member States’ plans, competitiveness and external action), in a framework note from its President, Ursula von der Leyen, and the Budget Commissioner, Piotr Serafin, published on 11 May.
In the note, the Commission has refined its initial orientation: - the national plans will be “national and regional partnerships for investments and reforms”; - external action will be deployed on the basis of the EU’s “internal priorities”; - the own resources package, blocked by the Council, will be adapted “with additional proposals”.
National plans. The regions feared that they would be left out of the EU’s long-term budget as a result of the introduction of the ‘cash for reforms’ principle. The Commission has revised its wording: “Member States and their regions will be able to design their plans according to their specific needs”, the note reads.
The Commission goes further, assuring that “regions will remain at the centre (...) ensuring that regional and local authorities benefit from funding and participate at all stages of programming and implementation”. The division into national or regional chapters will be à la carte, depending on the “organisation” and “traditions” of each Member State.
Both pillars of the Common Agricultural Policy (CAP) will be included in these “partnerships”.
External action. The EU intends to focus its financial support around the world on its “internal priorities”, in a ‘Global Europe Fund’, to which the Neighbourhood, Development and International Cooperation Instrument (NDICI) and humanitarian aid will be attached (which “will continue to operate under its current rules”).
“Comprehensive partnership packages” will be tailored “for each geographical zone” according to the EU’s priorities: energy security, the supply of critical raw materials, the fight against climate action, connectivity, migration and defence.
New own resources. Piotr Serafin warned MEPs at the plenary session on 6 May (see EUROPE 13636/30) that the Commission would propose a package of new own resources if the EU Council refused to adopt the proposal submitted in 2023.
The European Commission’s new proposals include: - a digital tax, “given the difficulties in reaching agreement on the proposal based on Pillar 1 of the OECD agreement (in line with the European Council statement of 25 March 2021)”; - a tax on electronic waste that is not collected or recycled; - a recalibration of the ETIAS (European Travel Information and Authorisation System) fees and fees on small packages. Member States gave a lukewarm reception to some of these ideas put forward by the Polish Presidency of the EU Council in late April (see EUROPE 13630/13). The European Commission is persisting: new own resources will be needed to pursue ambitious European policies while repaying the loan for the post-Covid-19 fund (see EUROPE 13631/6).
Renewed priorities. As announced, the EU Competitiveness Fund will bring together several critical areas. It will be structured in “a small number of sectoral windows, revolving around key objectives”: clean transition, digital transition, resilience, defence and space, health and biotechnology.
The introduction of ‘conditionality’ (“respect of the rule of law is a must for all EU funds”), the Union’s crisis preparedness strategy, the strengthening of the European industrial base, Erasmus + and cross-border infrastructure remain EU priorities, as planned. (Original version in French by Florent Servia)