A working version of the general regulation on the post-2027 Multiannual Financial Framework, published by Agence Europe, reveals the European Commission’s intention to increase the flexibility of the EU budget in the event of unforeseen circumstances.
Neither the commitment and payment ceilings nor the envelope amounts are shown in this document. The next MFF will last seven years. As expected, the European Commission intends to propose, “in parallel with this proposal”, a revision of the EU Council Decision on the European Union’s system of own resources.
Flexibility. In the wake of the Covid-19 crisis and Russia’s war of aggression in Ukraine, the Commission wants the EU to have “the capacity to act – and react – when circumstances change”, and is therefore proposing “more flexibility” in the new long-term budget.
The “indicative financial envelopes” for the programmes and the spending instruments may be adjusted according to spending priorities during the annual procedure. The Commission also intends to leave “a higher share of unprogrammed amounts”. The simplified architecture of the MFF and the reduced number of programmes will also contribute, according to the Commission, to its flexibility objective.
The “streamlined flexibility toolbox” will comprise three instruments: a special thematic instrument (the “Ukraine Reserve”) and two special non-thematic instruments, based on the existing strengthened mechanisms: the Single Margin Instrument and the Flexibility Instrument.
The European Commission wants to strengthen the latter two, because they are “the only tools providing the possibility to address unpredictable events or new and emerging priorities across all the budget lines”.
The Single Margin Instrument allows available margins of commitment and/or payment appropriations from previous years to be used to finance additional expenditure over and above the ceilings. It will apply from 2029.
The Flexibility Instrument will comprise a fixed amount to which will be added the revenue from fines, other sanctions and penalties and the amount of decommitted appropriations (excluding external assigned revenue, which is earmarked for a predetermined use).
Reserve for Ukraine. This new thematic instrument should enable the EU to continue to support Ukraine. It will be attached to the ‘Global Europe’ instrument, which should be the third pillar of the next MFF (see EUROPE 13641/8).
Support will be provided in the form of non-repayable support and provisioning of budgetary guarantees. A maximum annual amount, “for the duration of the MFF”, will be set in the proposal. The European Commission specifies that the unused part of the annual amount may be used in subsequent years, until 2034.
The MFF proposal is expected on 16 July (see EUROPE 13667/29).
See the document: https://aeur.eu/f/huw (Original version in French by Florent Servia with Lionel Changeur)