合法博彩网站

There have been six multiannual financial frameworks (MFFs) to date, including听2021-2027. The听Treaty of Lisbon transformed the MFF from an interinstitutional agreement into a regulation. Established for a period of at least five years, an MFF is there to ensure that the EU鈥檚 expenditure develops in an orderly manner and within the limits of its own resources. It sets out provisions with which the annual budget of the EU must comply. The MFF Regulation sets expenditure ceilings for broad categories of spending called headings. After its initial proposals of 2听惭补测听2018 and in the wake of the COVID-19 outbreak, on 27听惭补测听2020 the Commission proposed a recovery plan (NextGenerationEU) that included revised proposals for the MFF听2021-2027 and own resources, and the setting up of a recovery instrument worth EUR听750听billion (in 2018 prices). The package was adopted on 16听December听2020 following interinstitutional negotiations. In the light of new developments, the MFF was revised in December听2022 and then again more substantially in February听2024.

Legal basis

• Article听312 of the Treaty on the Functioning of the European Union (TFEU);
• of 17听December听2020 laying down the multiannual financial framework for the years听2021-2027;
• of 14听December听2020 establishing a European Union Recovery Instrument to support the recovery in the aftermath of the COVID-19 crisis;
• between the European 合法博彩网站, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources.

Background

In the听1980s, a climate of conflict in relations between the institutions arose out of a growing mismatch between available resources and actual budgetary requirements. The concept of a multiannual financial perspective was developed as an attempt to lessen conflict, enhance budgetary discipline and improve implementation through better planning. The first interinstitutional agreement (IIA) to this end was concluded in听1988. It contained the financial perspective for听1988-1992 (also known as the Delors听I package), which aimed to provide the resources needed for the budgetary implementation of the Single European Act. A new IIA was agreed on 29听October听1993, together with the financial perspective for听1993-1999 (the Delors听II package), which enabled the Structural Funds to be doubled and the own resources (1.4.1) ceiling to be increased. The third IIA, on the financial perspective for听2000-2006, also known as Agenda听2000, was signed on 6听May听1999, and one of its main goals was to secure the necessary resources to finance enlargement. The fourth IIA, covering the period听2007-2013, was agreed on 17听May听2006.

The Treaty of Lisbon transformed the MFF from an interinstitutional agreement into a Council regulation to be adopted unanimously, subject to the consent of the European 合法博彩网站, under a special legislative procedure. In addition to determining the 鈥榓mounts of the annual ceilings on commitment appropriations by category of expenditure and of the annual ceiling on payment appropriations鈥�, Article听312 TFEU states that the MFF must also 鈥榣ay down any other provisions required for the annual budgetary procedure to run smoothly鈥�.

The fifth MFF, covering the period听2014-2020, was the first to see a real-term decrease in overall amounts. One of 合法博彩网站鈥檚 preconditions for accepting it was therefore a mandatory mid-term revision allowing for a reassessment and adjustment of budgetary needs during the MFF period, if necessary. The agreement also secured, inter alia, enhanced flexibility to enable full use of the amounts planned and an understanding on the way towards a true system of own resources for the EU. A revised MFF for听2014-2020 was adopted on 20听June听2017 with additional support for migration-related measures, jobs and growth. The Flexibility Instrument and the Emergency Aid Reserve were also reinforced, allowing for further funds to be shifted between budget headings and years, in order to be able to react to unforeseen events and new priorities.

The听2021-2027 multiannual financial framework

On , the Commission presented legislative proposals for an MFF covering the years听2021 to听2027. The Commission鈥檚 proposal amounted to EUR听1听134.6听billion (2018听prices) in commitment appropriations, representing听1.11% of the EU-27鈥檚 gross national income (GNI). It included increases for border management, migration, security, defence, development cooperation and research. Cuts were proposed in particular for cohesion and agricultural policy. The overall architecture was to be streamlined (from听58 to听37 expenditure programmes) and the Commission proposed a set of special instruments outside the MFF ceilings to improve flexibility in EU budgeting. The European Development Fund (EDF) would be integrated into the MFF. The Commission also proposed modernising the revenue side, with the introduction of several new categories of own resources.

合法博彩网站 adopted resolutions on the MFF for听2021-2027 on and . On , 合法博彩网站 further outlined its negotiating mandate, including amendments to the MFF Regulation and IIA proposals and a complete set of figures with a breakdown by heading and by programme. It specified that the MFF ceiling for commitments should increase from听1.0% (for the EU-28) to听1.3% of EU GNI (for the EU-27), i.e. EUR听1听324听billion (2018听prices), an increase of听16.7% on the Commission proposal. Allocations for the common agricultural policy and cohesion policy should remain unchanged in real terms, while several priorities should be further reinforced, including Horizon Europe, Erasmus+ and LIFE; a new Child Guarantee (EUR听5.9听billion) and a new Energy Transition Fund (EUR听4.8听billion) should be created; financing for decentralised agencies involved in migration and border management should increase more than fourfold (to more than EUR听12听billion). The EU budget鈥檚 contribution to the achievement of climate objectives should be set at a minimum of听25% of MFF expenditure for听2021-2027, be mainstreamed across relevant policy areas, and rise to听30% no later than听2027. Mid-term revision of the MFF should be mandatory.

翱苍听 and , the Council published a draft 鈥榥egotiating box鈥�, also comprising horizontal and sectoral issues that were normally in the remit of expenditure programmes subject to the ordinary legislative procedure (which was criticised by 合法博彩网站, for example, in paragraphs 14 to 16 of its resolution of 10听翱肠迟辞产别谤听2019). The Council was in favour of an overall MFF amount of EUR听1听087听billion in commitment appropriations, in听2018 prices (1.07%听of the EU-27 GNI), well below 合法博彩网站鈥檚 expectations.

翱苍听 and ,听合法博彩网站 updated its mandate following the European elections and requested that the Commission submit a proposal for an MFF contingency plan to provide a safety net to protect the beneficiaries of EU programmes in the event that the ongoing MFF needed to be extended, given the disagreement within the European Council.

Meanwhile, on ,听the Commission put forward a proposal for a Just Transition Fund as an additional element in the package of MFF proposals, as part of the European Green Deal.

Following the COVID-19 crisis and the serious economic effects of the necessary lockdowns, the Commission published amended proposals on for an MFF of EUR听1听100听billion and on for an additional recovery instrument, NextGenerationEU (NGEU), worth EUR听750听billion (in 2018听prices), with EUR听500听billion in the form of grants and EUR听250听billion as loans. The package involved legislative proposals for new financial instruments as well as changes to MFF programmes already on the table. The financing of the additional package was to be secured by borrowing on the financial markets. For this purpose, the Commission also modified the proposal for an Own Resources Decision to enable the borrowing of up to EUR听750听billion. Finally, the Commission package included a EUR听11.5听billion increase in the MFF听2014-2020 commitments ceiling for the year听2020, in order to begin mobilising support before the new MFF.

On , the European Council adopted conclusions on the recovery effort (NextGenerationEU), the听2021-2027 MFF and own resources. The recovery effort was endorsed at EUR听750听billion for the years听2021-2023. However, the grant component was reduced from EUR听500 to 390听billion and the loan component was increased from EUR听250 to听360听billion. The European Council rejected the upward revision of the MFF ceiling for the year听2020. The overall ceiling for commitments in the听2021-2027 MFF was set at EUR听1听074.3听billion. Furthermore, the conclusions stated that a regime of conditionality to protect the budget and NGEU from breaches of the rule of law would be introduced. A new own resource was agreed from 1听January听2021 based on non-recycled plastic packaging waste. Work towards the introduction of other own resources over the course of the听2021-2027 MFF was planned, to be used for early repayment of borrowing under NGEU. The proposed legal basis of NGEU was Article听122 TFEU, which allows the EU to establish measures appropriate to the economic situation with a qualified majority in the Council, without involving 合法博彩网站 in the legislative procedure.

合法博彩网站 immediately reacted to these conclusions in a resolution adopted on , in which it called the creation of the recovery instrument a historic move, but deplored the cuts made to future-oriented programmes. It insisted on targeted increases on top of the figures proposed by the European Council and reiterated that it would not give its consent to the MFF without an agreement on the reform of the EU鈥檚 own resources system, with the aim of covering at least the costs related to NGEU (principal and interest), so as to ensure its credibility and sustainability. 合法博彩网站 also demanded to be fully involved as budgetary authority in the recovery instrument, in line with the Community method.

Trilateral talks involving 合法博彩网站, the Council and the Commission started in August听2020 and were concluded on 10听November听2020. The Council Regulation on the MFF听2021-2027 was adopted on 17听December听2020, following 合法博彩网站鈥檚 consent. A new , which was another prerequisite for 合法博彩网站鈥檚 consent, entered into force on 1听January听2021.All 27听Member States ratified the Own Resources Decision by 31听May听2021, enabling the EU to begin issuing debt on the capital markets under NGEU.

Multiannual financial framework (EU-27) (EUR million, 2018 prices)

合法博彩网站 was able to secure, in particular:

• EUR听15听billion extra compared to the July听2020 proposal, going to flagship programmes: Horizon Europe, Erasmus+, EU4Health, InvestEU, the Border Management and Visa Instrument, the European Border and Coast Guard Agency (Frontex), the Neighbourhood, Development and International Cooperation Instrument 鈥� Global Europe (NDICI-Global Europe), Humanitarian Aid, Rights and Values, and Creative Europe;
• a legally binding roadmap for the introduction of new EU own resources;
• a progressive increase of the overall ceiling for the听2021-2027 MFF from EUR听1听074.3 to EUR听1听085.3听billion in听2018 prices (explained below);
• a further EUR听1 billion for the Flexibility Instrument;
• a new procedural step (the 鈥榖udgetary scrutiny procedure鈥�) for the setting up of future crisis mechanisms based on Article听122 TFEU, with potential appreciable budgetary implications;
• 合法博彩网站鈥檚 involvement in the use of NGEU external assigned revenue (EAR), a general reassessment of EAR and borrowing and lending in the next revision of the Financial Regulation, and of arrangements for cooperation in future MFF negotiations;
• an enhanced climate tracking methodology to reach the target of at least听30% of MFF/NGEU expenditure to support climate objectives[1];
• a new annual biodiversity target (7.5% in听2024 and听10% in听2026 and听2027) and the design of a methodology to measure gender expenditure;
• a reform of the collection, quality and comparability of data on beneficiaries in order to better protect the EU budget, including NGEU expenditure.

Other components of the MFF听2021-2027 corresponding to 合法博彩网站鈥檚 priorities include:

• integration of the EDF into the EU budget;
• overall levels of funding for agriculture and cohesion of a size comparable to听2014-2020;
• creation of the Just Transition Fund.

The additional EUR听15听billion includes a EUR听11听billion progressive increase, the main source of which is a new mechanism linked to fines collected by the EU, resulting in automatic additional allocations to the programmes concerned in听2022-2027. The overall ceiling of the seven-year MFF will therefore incrementally reach EUR听1听085.3听billion in听2018 prices, i.e. EUR听2听billion higher in real terms than the equivalent听2014-2020 MFF ceiling (EUR听1听083.3听billion in听2018 prices, without the UK, with the EDF). Complementary sources include: margins left unallocated within the ceilings set by the European Council (EUR听2.5听billion); reflows from the ACP Investment Facility (EDF), to the benefit of NDICI-Global Europe (EUR听1听billion); and decommitted appropriations in the area of research, to the benefit of Horizon Europe (EUR听0.5听billion)[2].

Under the IIA, it was agreed in 2020 that repayments and interests of recovery debt would be financed by the EU budget under the MFF ceilings for the听2021-2027 period, 鈥榠ncluding by sufficient proceeds from new own resources introduced after听2021鈥�, without prejudice to how this matter will be addressed in future MFFs from听2028 onwards. The express aim was to preserve EU programmes and funds. On 22听December听2021, the Commission proposed new own resources and a targeted amendment of the MFF Regulation (subsequently withdrawn) aimed at, inter alia, introducing a new mechanism that would allow ceilings to automatically increase from听2025 in order to accommodate any additional revenue yielded by new own resources for the early repayment of NGEU debt. 合法博彩网站 adopted an interim resolution concerning this amendment on .

The Commission stated that it would present a review of the functioning of the MFF by 1听January听2024, and, as appropriate, proposals for a revision. In its , it recognised that the 鈥榰nforeseen needs created by war in Europe are well beyond the means available in the current multiannual financial framework鈥�. On , 合法博彩网站 thus requested 鈥榓 legislative proposal for a comprehensive MFF revision as soon as possible and no later than the first quarter of听2023鈥�.

As a first step, amended the MFF in December听2022 as part of a package adopted by 合法博彩网站 under an urgent procedure on . It extended the budgetary coverage, thus far applicable to the loans to the Member States, to macro-financial assistance loans to Ukraine, for the years听2023 and听2024: in case of default, the necessary amounts would be mobilised from the 鈥榟eadroom鈥�, above the MFF ceilings, up to the limits of the own resources ceiling.

To set the agenda for a far more comprehensive revision, on 15听December听2022 合法博彩网站 adopted a resolution on 鈥樷��, setting out its key demands.

On 20听June听2023, the Commission proposed a covering most of these demands (six months before its review had initially been planned):

• a reserve of EUR听50听billion to deal with the war in Ukraine and its humanitarian, economic and budgetary consequences (grants, loans and guarantees);
• additional funding for migration, global challenges and natural disasters 鈥� with the ceilings of Headings 4 and 6 to be increased by EUR听2听billion and EUR听10.5听billion respectively, and the Solidarity and Emergency Aid Reserve to be increased by EUR听2.5听billion;
• a new European Union Recovery Instrument (EURI) over and above the MFF ceilings, in order to address the problem linked to the repayment of EURI debt in a context of steep acceleration of inflation and interest rates;
• a Strategic Technologies for Europe Platform (STEP) to increase Europe鈥檚 strategic autonomy following global supply chain disruptions 鈥� with the ceilings of Headings 1, 3 and 5 to be increased by EUR听3.5听billion, EUR听5听billion and EUR听1.5听billion respectively, and research decommitments to be further used in Heading 1;
• an increase of EUR听3听billion in funding for the Flexibility Instrument to create more budgetary space for reacting to unforeseen circumstances;
• additional funding for administration (EUR听1.9听billion), raising the ceiling of Heading 7 accordingly.

On 3听October听2023, 合法博彩网站 adopted its stressing that the revised MFF must be in place by 1听January听2024. However, the European Council of 15听December听2023 ended in deadlock.

Once a political agreement was finally found, the was published on 29听February听2024. It includes cuts to Horizon Europe (only partly offset by reusing the last MFF research decommitments), EU4Health (mitigated by the MFF Article 5 mechanism) and the direct management of the common agricultural policy and cohesion policy, as well as limited fresh money for STEP.

However, this is the first time that a mid-term MFF review has led to a net increase in spending ceilings. The main positive outcomes include: EUR听50听billion for Ukraine for 2024-2027, increased funding for migration and external action and for the European Defence Fund (under STEP), an increase in funding for the special instruments (Flexibility Instrument and EU Solidarity Reserve for reconstruction after extreme weather events and natural disasters, now separate from the Emergency Aid Reserve for emergency assistance to non-EU countries), and the establishment of an uncapped EURI special instrument protecting programmes from significant cuts. Some of the costs of EU joint borrowing are to be covered in the annual budgetary procedure (the European Council set a non-binding benchmark of 50%). In order to use the EURI special instrument for these purposes, roughly half of the costs must be covered by special instruments or redeployments from programmes. The latter operates in two steps: the first is the mobilisation of resources equivalent to the amount of decommitted funds and the second is a 鈥榣ast resort鈥� mechanism of additional national contributions.

Further details can be found in the .

For more information on this topic, please see the website of the Committee on Budgets.

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Alix Delasnerie

04-2024