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AMENDMENTS

The Committee on ~~Economic~~Civil Liberties, Justice and ~~Monetary~~Home Affairs submits the following to the Committee on Budgets, as the committee responsible :

Amendment 1

Motion for a resolution

Citation -11 a (new)

Motion for a resolution

Amendment

~~– having regard to the Commission communication of 10 February 2025 entitled ‘The Clean Industrial Deal: A joint roadmap for competitiveness and decarbonisation’ (COM(2025)0085),~~

– having regard to the Charter of Fundamental Rights of the European Union (‘the Charter’),

Amendment 2

Amendment

– having regard to the Commission communication of 11 December 2019 entitled ‘The European Green Deal’ (COM(2019)0640) and the Paris Agreement, adopted on 12 December 2015 at the UN Climate Change Conference,

– having regard to the European Court of Auditors special report of 2021 on ‘Gender mainstreaming in the EU budget’,

Amendment 3

Amendment

~~– having regard to the Antwerp Declaration for a European Industrial Deal, signed on 20 February 2024,~~

– having regard to the UN instruments on the protection of human rights and fundamental freedoms, including the International Covenant on Civil and Political Rights, the International Convention on the Elimination of All Forms of Racial Discrimination, the Convention on the Elimination of All Forms of Discrimination Against Women and the Convention on the Rights of Persons with Disabilities, the recommendations and reports of the UN Universal Periodic Review, the case-law of the UN Treaty Bodies and the special procedures of the Human Rights Council,

Amendment 4

Motion for a resolution

Citation 1812 ac (new)

Motion for a resolution

Amendment

– having regard to the ~~Commission~~report ~~communication~~from the European Union Agency for Fundamental Rights of 2919 ~~January~~December ~~2025~~2023 entitled ‘A‘EU ~~Competitiveness~~funds: ~~Compass~~Ensuring ~~for~~compliance ~~the~~with ~~EU’~~fundamental ~~(COM(2025)0030),~~rights’,

Amendment 5

Motion for a resolution

Citation 1917 a (new)

Motion for a resolution

Amendment

– having regard to Article 9 of the ~~discharge~~Common ~~procedure~~Provisions Regulation on horizontal principles and ~~the~~to ~~findings~~Article 15(1) of ~~the~~Annex ~~European~~III ~~Court~~on ofhorizontal ~~Auditors~~enabling conditions, in ~~their~~particular ~~annual~~regarding ~~reports~~respect onfor fundamental rights and compliance with the ~~implementation~~Charter of Fundamental Rights of the EUEuropean ~~budget,~~Union,

Amendment 6

Motion for a resolution

Citation 1917 b (new)

Motion for a resolution

Amendment

– having regard to the European Council conclusions of 69 ~~March~~February ~~2025~~2023, on30 ~~European~~June ~~defence,~~2023 and 19 December 2024,

Amendment 7

Motion for a resolution

Recital ~~A a~~-A (new)

Motion for a resolution

Amendment

~~A a. whereas Article 3(3) of the Treaty on European Union defines the internal market as a competitive social market economy;~~

-A. whereas the Union is founded on the values of respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights, including the rights of persons belonging to minorities (Union values); whereas the Union’s aim is to promote peace, its values and the well-being of its peoples; whereas the Union shall offer its citizens an area of freedom, security and justice without internal frontiers;

Amendment 8

Motion for a resolution

Recital BF a (new)

Motion for a resolution

Amendment

B a. whereas growth in Europe has fallen behind other regions of the world; whereas, the gap between the gross domestic product (GDP) of the United States and that of the EU widened from 17 % in 2002 to 30 % in 2023;

F a. whereas breaches of the values enshrined in Article 2 TEU undermine the cohesion of the European project, erode the rights of EU citizens and weaken mutual trust among Member States;

Amendment 9

Motion for a resolution

Recital CG

Motion for a resolution

Amendment

C. whereas spending through the Union budget, if effectively targeted, aligned with the Union’s political priorities and coordinated with spending at national level, helps to avoid fragmentation in the single market and to boost the overall impact of public investment; whereas public investment, if used efficiently and in a targeted manner, should serve as a catalyst for incentivising private investment and should fill investment gaps, to enable the Union to regain its leading position;

G. whereas the context in which the Commission will prepare its proposals for the post-2027 MFF is every bit as challenging, from our security at home to the rapid and radical changes to the established global and geopolitical order, amplified by the return of large-scale wars in our neighbourhood that threaten the security of the EU, its Member States and its citizens, and the Union budget needing to change accordingly;

Amendment 10

Motion for a resolution

~~Recital C a (new)~~

Paragraph 1

Motion for a resolution

Amendment

C a. whereas unlocking private investment in the Union remains a priority; whereas the completion of the savings and investments union is crucial for mobilising private investment, in particular facilitating market access for retail investors, addressing the fragmentation of the internal market, improving access to equity financing for European businesses and supporting the EU’s industrial strategy;

1. Underlines that the post-2027 long-term budget must be designed and resourced so as to enable the Union to deliver on its policy objectives, tackle the growing challenges it faces, manage and repay its debt sustainably, respond to shocks and crises and adjust to evolving spending needs;

Amendment 11

Motion for a resolution

~~Recital D~~

Paragraph 3

Motion for a resolution

Amendment

D. whereas the NextGenerationEU recovery instrument (NGEU) established in the wake of the COVID-19 pandemic enabled significant additional investment capacity of EUR 750 billion in 2018 prices, prompting a swift recovery and return to growth and supporting the green and digital transitions; whereas NGEU will not be in place post-2027;

3. Emphasises that the post-2027 MFF must also become simpler and more transparent and be protected against misuse, fraud and breaches of the principles of the rule of law and the Union’s values;

D. whereas the NextGenerationEU recovery instrument (NGEU), with a one-off investment capacity of EUR 750 billion in 2018 prices, established in the wake of the COVID-19 pandemic enabled additional investment and reforms, prompting a swift recovery and return to growth and supporting the green and digital transitions; whereas NGEU will not be in place post-2027; whereas repayment of the NGEU debt has to start as of 2028;

3. Emphasises that the post-2027 MFF must also become simpler and more transparent and be protected against misuse, fraud and breaches of the principles of the rule of law and all other Union values enshrined in Article 2 TEU;

Amendment 12

Motion for a resolution

~~Recital D a (new)~~

Paragraph 4

Motion for a resolution

Amendment

D a. whereas the Recovery and Resilience Facility (RRF) plays a role in boosting investment across the EU, mitigating contractionary effects by maintaining substantial levels of public investment; whereas the RRF is a temporary instrument that will expire in 2026; whereas a timely debate is needed to ensure appropriate levels of public investment beyond 2026 to adequately finance common EU priorities and to ensure continued reforms;

4. Underlines that a simpler, more flexible MFF requires more robust parliamentary accountability;

4. Underlines that a simpler, more flexible MFF must fully respect Parliament’s role as co-legislator for the duration of the next programming period, including through mid-term revisions of the MFF-related basic acts and requires more transparency and robust parliamentary scrutiny and accountability;

Amendment 13

Motion for a resolution

~~Recital E~~

Paragraph 4 a (new)

Motion for a resolution

Amendment

E. whereas the Union budget, bolstered by NGEU, has been instrumental in alleviating the economic and social impact of the COVID-19 crisis and in responding to the effects of Russia’s war of aggression against Ukraine; whereas the Union budget remains ill-equipped, in terms of size, structure and rules, to fully play its role in adjusting to evolving spending needs, addressing shocks and responding to crises and giving practical effect to the principle of solidarity;

4 a. Highlights the importance of safeguarding the progress achieved so far in key areas of EU policies, including fundamental rights; emphasises the need to ensure that the post-2027 MFF does not lead to backtracking on the progress made;

E. whereas the Union budget and NGEU have been instrumental in alleviating the economic and social impact of the COVID-19 crisis and in responding to the effects of Russia’s war of aggression against Ukraine; whereas the Union budget remains ill-equipped, in terms of size, structure and rules, to fully play its role in adjusting to evolving reforms and investment needs, addressing shocks and responding to crises, giving practical effect to the principle of solidarity and, in particular, addressing growing European security threats and rapidly increasing defence obligations;

Amendment 14

Motion for a resolution

~~Recital E a (new)~~

Paragraph 5

Motion for a resolution

Amendment

E a. whereas in a rapidly shifting European security landscape, the EU budget must include defence as a specific priority, reflecting the EU added value that fully supports Member States on fulfilling their mutual defence commitments effectively, in accordance with Article 42(7) of the Treaty on European Union;

5. Considers that, in view of the structural challenges facing the Union, the post-2027 MFF should adjust its spending focus to ensure that the Union can meet its strategic policy aims as detailed below;

5. Considers that, against the background of growing threats and structural challenges facing the Union, the post-2027 MFF should focus its spending to ensure that the Union can meet its strategic policy aims as detailed below;

Amendment 15

Motion for a resolution

~~Recital F~~

Paragraph 6

Motion for a resolution

Amendment

F. whereas, since the adoption of the current multiannual financial framework (MFF), the political, economic and social context has changed beyond recognition, compounding underlying structural challenges for the Union and leading to a substantial revision of the MFF in 2024;

6. Is convinced that boosting competitiveness, decarbonising the economy and enhancing the Union’s innovation capacity are central priorities for the post-2027 MFF and are vital to ensure long-term, sustainable and inclusive growth and a more resilient economy and society;

F. whereas, since the adoption of the current multiannual financial framework (MFF), multiple crises, such as the COVID-19 pandemic and Russia’s war of aggression against Ukraine, have highlighted the need for flexibility in order to address serious socio-economic challenges; whereas it needs to be taken into consideration that the political, environmental, economic and social context has changed beyond recognition, compounding underlying structural challenges for the Union and leading to a substantial revision of the MFF in 2024;

6. Is convinced that boosting competitiveness, decarbonising the economy and enhancing the Union’s innovation capacity are central priorities for the post-2027 MFF and are vital to ensure long-term, secure, sustainable and inclusive growth and a more resilient economy and society;

Amendment 16

Motion for a resolution

~~Recital G~~

Paragraph 19

Motion for a resolution

Amendment

19. Stresses that cohesion policy funding must tackle the key challenges the Union faces, such as demographic change and depopulation, and target the regions and people most in need; highlights, in particular, the importance of enhanced support to address the EU-wide housing crisis affecting millions of families and young people;

G. whereas the context in which the Commission will prepare its proposals for the post-2027 MFF is every bit as challenging, with the established global and geopolitical order changing quickly and radically, the planet’s sustainability remaining a key concern, the EU facing increasing annual financing needs, as underlined in the Draghi report, and the Union budget needing to change accordingly;

19. Stresses that cohesion policy funding must tackle key challenges the Union faces, such as demographic change and depopulation, and target the regions and people most in need; highlights, in particular, the importance of enhanced support to address the EU-wide housing crisis affecting millions of families and vulnerable young and elderly people who cannot fully enjoy their rights and often face discrimination;

Amendment 17

Motion for a resolution

~~Recital H a (new)~~

Paragraph 20

Motion for a resolution

Amendment

H a. whereas the Budapest Declaration of 8 October 2024 on the new European competitiveness deal committed the Union and its Member States to achieving the objective to spend at least 3 % of the Union’s GDP on research and development by 2030, an objective first set for 2010 under the Lisbon Strategy;

20. Points out that Russia’s war of aggression against Ukraine has had substantial economic and social consequences, in particular in Member States bordering Russia; insists that the next MFF provide support to these regions;

20. Points out that Russia’s war of aggression against Ukraine, supported by Belarus, and hybrid actions have had substantial negative economic, security and social consequences, in particular in Member States bordering Russia, Belarus and Ukraine; insists that the next MFF provide support to these regions;

Amendment 18

Motion for a resolution

~~Recital H b (new)~~

Paragraph 24

Motion for a resolution

Amendment

~~H b. whereas the European Court of Auditors, in its 2024 report, concluded that the error rate for EU spending has risen to 5.6 % of the overall budget;~~

24. Points to the profound technological shift under way, with new technologies such as artificial intelligence both creating opportunities, in terms of economic potential and improvements to the citizens’ lives, and posing reliability and ethical challenges; stresses that the next MFF must support the development and safe application of such technologies and help people to hone the skills they need to work with and use them;

24. Points to the profound technological shift under way, with new technologies such as artificial intelligence (AI) both creating opportunities, in terms of economic potential and improvements to the citizens’ lives, and posing reliability, ethical and legal challenges; stresses that the next MFF must significantly boost development and innovation in this sector, ensure the safe application of secure AI technologies with a human-centric approach, and help people to hone the knowledge and skills they need to work with and use them, while ensuring a high level of protection of fundamental rights, including democracy and the rule of law; highlights that investing in reskilling and upskilling tools is essential to facilitate the transition;

Amendment 19

Motion for a resolution

~~Recital H c (new)~~

Paragraph 25

Motion for a resolution

Amendment

~~H c. whereas the EU budget needs to stick to the socio-economic objectives of the Union laid down in Article 3(3) of the Treaty on European Union;~~

25. Recalls that security is the foundation for the Union’s prosperity and social model and that the next MFF must invest significantly more in safeguarding the Union against the myriad threats it faces;

25. Recalls that security is the foundation for the Union’s prosperity and social model and that the next MFF must invest significantly more in safeguarding the Union and its citizens against the numerous internal and external threats it faces; underlines that safeguarding security is essential to preserving the Schengen area and freedom of movement;

Amendment 20

Motion for a resolution

~~Recital H d (new)~~

Paragraph 26

Motion for a resolution

Amendment

~~H d. whereas the Letta report proposed a State aid contribution mechanism;~~

26. Underlines that, as the Niinistö report makes clear, the fragmenting global order, increasingly frequent and intense extreme weather events, the security threat posed by Russia, growing tensions globally, hybrid campaigns, which include cyberattacks, foreign information manipulation, disinformation and interference and the instrumentalisation of migration, and health threats are combining to heighten instability and increase the Union’s vulnerability;

26. Underlines that, as the Niinistö report makes clear, the fragmenting global order, increasingly frequent and intense extreme weather events, the security threat posed by terrorism, international organised crime, hostile actors such as Russia, growing tensions globally, hybrid campaigns, which include cyberattacks, foreign information manipulation, physical sabotage of critical infrastructure, disinformation, intimidation and interference – particularly in electoral processes – and the instrumentalisation of migration, as well as violent extremism and health threats are combining to heighten instability and increase the Union’s vulnerability;

Amendment 21

Motion for a resolution

~~Recital H e (new)~~

Paragraph 28 a (new)

Motion for a resolution

Amendment

~~H e. whereas the well-being of families and individuals should be kept as the central guiding principle in all aspects of the Union budget;~~

28 a. Underlines the role of the EU budget in developing critical and dual-use technologies to strengthen the EU’s autonomy, infrastructure, strategic reserves and long-term capabilities, while reducing external dependencies; calls for a comprehensive approach on investments in AI, cybersecurity, cloud systems and connectivity to ensure interoperability and support a competitive, resilient European security industry;

Amendment 22

Motion for a resolution

~~Recital H f (new)~~

Paragraph 29

Motion for a resolution

Amendment

~~H f. whereas Commissioner Valdis Dombrovskis is tasked with implementing the review of the system of national accounts, to better integrate well-being and sustainability concerns;~~

Amendment 23

Motion for a resolution

~~Paragraph 1~~

Paragraph 30 a (new)

Motion for a resolution

Amendment

30 a. Highlights that hybrid threats and attacks can trigger large-scale crises, harming citizens’ safety and well-being, societal stability, and the economy, posing a major challenge to the Union’s internal security; stresses the need for a stronger EU preparedness approach, enhancing strategic foresight, early warning and coordination; underlines the importance of equipping the Union with flexible tools, including financial resources, to address new security challenges swiftly and effectively;

1. Underlines that the post-2027 long-term budget must be designed and resourced so as to enable the Union to adequately invest, incentivise public investment and deliver on its policy objectives, strengthen its competitiveness at international level, tackle the growing challenges it faces, manage and repay its debt sustainably, respond to shocks and crises and adjust to evolving spending needs; recalls that the MFF and the Recovery and Resilience Facility (RRF) amount to almost EUR 2 trillion for the current period and that high inflation rates have decreased the impact of EU spending; calls for the size of the post-2027 budget to sufficiently address the significant investment gap identified in the Draghi report;

Amendment 24

Motion for a resolution

Paragraph 231

Motion for a resolution

Amendment

2. Stresses that all spending in the post-2027 MFF must be strategically aligned with the EU’s political aims, adding tangible value for the people of the Union, with discernible net benefits compared to spending at national or sub-national level and leading to real and lasting results;

31. Emphasises that the Union needs to ramp up funding for preparedness across the board; underlines that, in addition to efforts to mitigate climate change through the green transition, significant investment is required to adapt to climate change, in particular to protect against and reduce the impact of natural disasters and severe weather events; considers that support for this purpose must be significantly increased in the next MFF;

2. Stresses that all spending in the post-2027 MFF must be strategically aligned with the EU’s political aims of sustainable competitiveness and resilience, adding tangible value for the people of the Union, with discernible net benefits compared to spending at national or sub-national level and leading to real and lasting results; asks, in particular, that the funding of common European public goods be prioritised in policy areas where public provision is more efficient at the EU level as a result of economies of scale, thereby generating savings for EU taxpayers;

31. Emphasises that the Union needs to ramp up funding for civilian and military preparedness and readiness across the board, in particular to foster coordination and cooperation, civil protection capabilities and public-private partnerships, embracing the ‘whole of society’ approach;

Amendment 25

Motion for a resolution

~~Paragraph 3~~

Paragraph 31 a (new)

Motion for a resolution

Amendment

~~3. Emphasises that the post-2027 MFF must also become simpler and more transparent and be protected against misuse, fraud and breaches of the principles of the rule of law and the Union’s values;~~

31 a. Stresses the need to strengthen the budget for EU cross-border police, judicial and inter-agency cooperation to enhance Member States’ coordinated responses to transnational crime and security threats such as terrorism; considers, in particular, that adequate funds should be allocated to fostering joint prevention measures, information sharing, joint investigations and operations, and effective prosecution; insists on proper funding and staffing for all EU JHA agencies and bodies that ensure the Union’s safety and best interests;

3. Emphasises that the post-2027 MFF must also become simpler and more transparent and be protected against misuse, fraud and breaches of the principles of the rule of law and the Union’s values in line with the recommendations issued by the European Court of Auditors in its successive reports;

Amendment 26

Motion for a resolution

~~Paragraph 3 a (new)~~

Paragraph 33

Motion for a resolution

Amendment

3 a. Stresses the importance of upholding the principle of subsidiarity in the next MFF; calls for those policy areas where public expenditure is more efficient at national and subnational levels to be explored;

33. Underlines that, with technological change, it has become easier for malicious and opportunistic foreign actors to spread disinformation, interfere in elections and mount cyberattacks against the Union’s interests; insists that the next MFF must invest in enhanced cybersecurity; points to the importance of digital and media literacy and critical thinking in this regard, and to the need for continued Union budget support for initiatives in these areas;

33. Underlines that, with technological change and digitalisation, it has become easier for malicious and opportunistic foreign actors such as Russia to spread disinformation, interfere in elections and mount cyberattacks against the Union’s interests, impacting both online and offline spheres; insists that the next MFF must invest in enhanced and robust cybersecurity capabilities and democratic and societal resilience, and ensure full resourcing of EU tools to counter interference and disinformation; points to the importance of digital and media literacy and critical thinking, and to the need for continued Union budget support for initiatives in these areas, such as training, online tools and awareness-raising campaigns; underlines that these initiatives should be targeted at all citizens, including marginalised and vulnerable groups;

Amendment 27

Motion for a resolution

~~Paragraph 4~~

Paragraph 33 a (new)

Motion for a resolution

Amendment

~~4. Underlines that a simpler, more flexible MFF requires more robust parliamentary accountability;~~

33 a. Stresses that in light of the rapid development of information technology and the associated risks, the next MFF should support flexible and effective responses to the evolving security and crime environment; emphasises that attention should be paid to fostering cross-border measures aimed at prevention, cooperation and the fight against online crime, in particular affecting women and children, such as gender-based violence and child sexual abuse;

4. Underlines that a simpler, more flexible MFF requires sufficient transparency and more robust parliamentary accountability; underlines the need for any future budget to fully respect Parliament’s role as budgetary authority and its co-decision rights, as defined in the Treaties, as regards the design, scrutiny, allocation and evaluation of the budget; notes, in this respect, that national parliaments should be empowered to fulfil their oversight role and exercise their rights in holding the executive accountable when making commitments with the EU; underlines, further, the need to increase parliamentary oversight over the European Semester process, in line with the provisions of the Treaties;

Amendment 28

Motion for a resolution

~~Paragraph 4 a (new)~~

Paragraph 34

Motion for a resolution

Amendment

4 a. Recalls that EU citizens must be able to count on those implementing the EU budget informing them about how the funds have been spent and the objectives achieved; recalls that transparency is essential to retain citizens’ trust, and that fraud and misuse of funds are extremely detrimental to that trust; calls on the Commission to put in place solid anti-fraud mechanisms in all funding instruments for the post-2027 MFF, to ensure the protection of the EU budget;

34. Underscores the importance of continued funding, in the next MFF, for effective protection of the EU’s external borders; underlines the need to counter trafficking networks and address hybrid attacks and the instrumentalisation of migrants, in particular by a third country or a hostile non-state actor;

34. Underscores the importance of continued funding, in the next MFF, for effective protection of the EU’s external borders; underlines the need to counter transnational criminal networks and better protect victims of trafficking networks, and to strengthen resilience and response capabilities to address hybrid attacks and the instrumentalisation of migrants by third countries or hostile non-state actors;

Amendment 29

Motion for a resolution

~~Paragraph 6~~

Paragraph 34 a (new)

Motion for a resolution

Amendment

34 a. Highlights, in particular, the need for adequate financial support to frontline Member States, to ensure they have the resources to maintain facilities and installations necessary to secure the external borders of the EU, including electronic border security enhancements and other tools for border surveillance;

6. Is convinced that boosting competitiveness, decarbonising the economy, strengthening our security and defence, strengthening territorial, regional and social cohesion, enhancing the Union’s innovation capacity and digitalisation are central priorities for the post-2027 MFF and are vital to ensure long-term, sustainable, green and inclusive growth and a more resilient economy and society; points out, however, that these priorities cannot be achieved through additional spending alone;

Amendment 30

Motion for a resolution

~~Paragraph 7~~

Paragraph 34 b (new)

Motion for a resolution

Amendment

7. Underlines that, as spelt out in the Letta and Draghi reports, the European economy and social model are under intense strain, with the productivity, competitiveness and skills gap having knock-on effects on the quality of jobs and on living standards for Europeans already grappling with high housing, energy and food prices; is concerned that a lack of job opportunities and high costs of living increase the risk of a brain drain away from Europe;

34 b. Underlines that, in addition to efforts to mitigate climate change through the green transition, significant investment is required to adapt to climate change, in particular to protect against and reduce the impact of natural disasters and severe weather events; considers that support for this purpose must be significantly increased in the next MFF;

7. Underlines that, as spelt out in the Letta and Draghi reports, the European economic and social model based on the principle of a social market economy is under intense strain, with the productivity, competitiveness and skills gap having knock-on effects on the strength of our economy and the quality of jobs, and on living standards and economic and social prosperity for Europeans already grappling with high housing, energy and food prices; is concerned that a lack of opportunities for creating new businesses and jobs, as well as the high costs of living and the declining quality and accessibility of the provision of services of general interest, increases the risk of a brain drain away from Europe; stresses, furthermore, that the threat of deindustrialisation exacerbates these challenges, having an adverse impact on workers;

Amendment 31

Motion for a resolution

~~Paragraph 7 a (new)~~

Subheading 5

Motion for a resolution

Amendment

7 a. Recalls that, in accordance with the recommendations made in the Letta and Draghi reports, all Commissioners were tasked, in their mission letters, with ensuring that existing rules are fit for purpose and with focusing on reducing administrative barriers and burdens and simplifying legislation; calls on the Commission to make sure that no legislative proposal should be introduced without a thorough impact assessment and competitiveness check;

External action and enlargement

Migration, external action and enlargement

Amendment 32

Motion for a resolution

~~Paragraph 8~~

Paragraph 37 a (new)

Motion for a resolution

Amendment

8. Points out that Draghi puts the annual investment gap with respect to innovation and infrastructure at EUR 750-800 billion per year between 2025 and 2030; underlines that, while the Union budget cannot cover that shortfall alone, it must play a vital role;

37 a. Stresses that instability in neighbouring regions, poverty, underlying trends in economic development and demographic changes continue to generate migration flows towards the Union, placing significant pressure on asylum and migration systems; underlines that the post-2027 MFF must support the full and swift implementation of the Union’s Asylum and Migration Pact, as well as effective return and readmission policies, in line with fundamental rights and Union values, including the principle of solidarity and fair sharing of responsibility; underlines, moreover, that, in line with the Pact, the EU must pursue enhanced cooperation and mutually beneficial partnerships with third countries on migration, with adequate parliamentary scrutiny, and that such cooperation must abide by EU and international law;

8. Points out that Draghi puts the annual private and public investment gap with respect to innovation and infrastructure at EUR 750-800 billion per year between 2025 and 2030; underlines that the Union budget must play a vital role in covering that shortfall; calls on the Commission, in this context, to establish a target for the funding that should be allocated to start-ups and SMEs; recalls that the new Commission’s self-imposed goal is to be an ‘investment Commission’ and to unlock the public and private financing needed for the green, digital and social transitions, among other things; recalls, furthermore, that the budget should be better leveraged to pursue European objectives and increase the European economy’s competitiveness; acknowledges Draghi’s assessment that much of the productive investment will be undertaken by the private sector and points out that the Union budget contains tools to de-risk and leverage private investments;

Amendment 33

Motion for a resolution

~~Paragraph 8 a (new)~~

Paragraph 38

Motion for a resolution

Amendment

8 a. Underlines the need for a modernised budget to bolster the future of Europe’s strategic autonomy; takes note of the Commission’s announcement of a European competitiveness fund to provide financial support to key sectors to match their investment needs under the competitiveness coordination tool; recalls that the European competitiveness fund should also pursue the integrity of the single market; stresses the need to prioritise investment with European added value, such as cross-border projects and Important Projects of Common European Interest (IPCEI); underlines that, while investment in clean and strategic technologies and support for IPCEIs are essential, actions aimed at effectively strengthening Europe’s competitiveness require a comprehensive approach that also includes targeted measures to bridge the skills gap through education, (re)qualification and training, thus ensuring that the EU workforce remains adaptable and future-ready; stresses that, for the fund to have a real impact, it must be backed by ‘fresh money’ rather than relying solely on the reallocation of existing resources;

38. Underlines that the budget must uphold the Union’s role as the world’s leading provider of development aid and climate finance in line with the Union’s global obligations and commitments; insists that the budget must continue to support the Union in its efforts to defend the rules-based international order, democracy, multilateralism, human rights and fundamental values;

Amendment 34

Motion for a resolution

~~Paragraph 8 b (new)~~

Paragraph 40

Motion for a resolution

Amendment

8 b. Emphasises that the Union budget should focus on jointly agreed strategic goals and objectives, streamlining its budget structure to achieve sufficient scale and support for strategic goals, and simplifying access to beneficiaries, and underlines, in addition, that the creation of a savings and investments union will be key to complementing more efficient public funding;

40. Emphasises that, in a context in which global actors are increasingly using trade interdependence as a means of economic coercion, the Union must bolster its capacity to protect and advance its own strategic interests, develop more robust tools to counter coercion and ensure genuine reciprocity in its partnerships, using all available instruments – diplomatic, economic and development cooperation;

Amendment 35

Motion for a resolution

Paragraph 943

Motion for a resolution

Amendment

9. Stresses that the Union budget must be carefully coordinated with national spending and designed such that it can de-risk, mobilise and leverage private investment effectively, enabling start-ups and SMEs to access funds more readily; calls, therefore, for programmes such as InvestEU, which ensures additionality and follows a market-based, demand-driven approach, to be significantly reinforced in the next MFF; considers that budgetary guarantees are an effective use of resources and calls for them to be simplified;

43. Stresses that financial support must be conditional on the implementation of reforms and adherence to Union values; emphasises, in this regard, the need for a strong governance model that ensures parliamentary accountability, oversight and control;

9. Stresses that the Union budget must be carefully coordinated with national spending and designed such that it contains elements to de-risk, mobilise and leverage private investment effectively, ensuring fair opportunities for all Member States, particularly smaller economies, to attract capital and drive sustainable growth, and enabling start-ups, scale-ups and SMEs to access funds more readily; recognises financial instruments and budgetary guarantees as powerful tools to achieve critical EU policy goals; calls, therefore, for programmes such as InvestEU and the European Innovation Council, which ensure additionality and follow a market-based, demand-driven approach, to be significantly reinforced in the next MFF and to be allowed to follow a less risk-adverse approach to truly stimulate innovation in order to build up Europe’s venture capital ecosystem; considers that budgetary guarantees can be an effective use of resources and calls for them to be simplified and streamlined, reducing unnecessary complexity and burdens for beneficiaries and implementing partners;

43. Stresses that financial support must be conditional on adherence to Union values, respect of obligations stemming from international law and the implementation of reforms, but also on the condition of having stable institutions that guarantee democracy, the rule of law, respect for minorities, and their protection; emphasises, in this regard, the need for a strong governance model that ensures parliamentary accountability, oversight and control;

Amendment 36

Motion for a resolution

~~Paragraph 10~~

Subheading 6

Motion for a resolution

Amendment

10. Insists that, in the next MFF, more must be done to maximise the potential of the role of the European Investment Bank Group – together with other international and national financial institutions – in lending in strategic policy areas, such as climate and, latterly, dual-use defence projects;

Fundamental rights, Union values and the rule of law

10. Insists that, in the next MFF, more must be done to maximise the potential of the role of the European Investment Bank (EIB) Group – together with other international and national financial institutions – in lending in strategic policy areas under the mandate of the EIB; calls, in this respect, for a reinforced investment partnership to ensure that every euro is used in the most efficient manner at the European level; welcomes, in that regard, the launch on 13 February 2023 of the European Tech Champions Initiative, which channels late-stage growth capital to European innovators; highlights the fact that the severe instability of the current geopolitical situation requires the defence industry’s access to private funding to be strengthened, via the EIB, among other bodies, without losing the triple A status; highlights the crucial role played by the EIB, particularly in addressing areas where private financing is lacking, and calls for its risk appetite to be increased and for its efforts to be stepped up, especially in the area of venture capital;

Union values: democracy, the rule of law and fundamental rights

Amendment 37

Motion for a resolution

~~Paragraph 10 a (new)~~

Paragraph 46

Motion for a resolution

Amendment

10 a. Calls on the Commission to prioritise the legislative proposals to complete the savings and investments union and the banking union; notes the importance of increased funding for financial literacy in the Union as a way to ensure that EU citizens have the knowledge and skills they need to make good financial decisions;

46. Emphasises the importance of the Union budget in promoting and protecting democracy and the Union’s values, fostering the Union’s common cultural heritage and European integration, enhancing citizen engagement and youth participation and promoting fundamental rights enshrined in the Charter of Fundamental Rights and the rule of law; points to the importance of independence of justice, the sound functioning of national institutions, support for civil society and de-oligarchisation;

46. Emphasises the importance of the Union budget in promoting and protecting democracy and the Union’s values, enshrined in Article 2 TEU, fostering the Union’s common cultural heritage and European integration, enhancing citizen engagement and youth participation and protecting and promoting fundamental rights enshrined in the Charter and the rule of law; points to the importance of independence, quality and efficiency of the judiciary, in particular its independence from political interference, the sound functioning of democratic institutions, independence and pluralism of the media, the transparency and anti-corruption framework, good governance, checks and balances, promoting equality for all and efforts to combat all forms of discrimination, including racism;

Amendment 38

Motion for a resolution

Paragraph 1147

Motion for a resolution

Amendment

11. Emphasises that funding for research and innovation should be significantly increased, should be focused on the Union’s strategic priorities and should continue to be determined by the principle of excellence; considers that there should be sufficient resources across the MFF and at national level to fund all high-quality projects;

47. Stresses that instability in neighbouring regions, poverty, underlying trends in economic development and demographic changes continue to generate migration flows towards the Union, placing significant pressure on asylum and migration systems; underlines that the post-2027 MFF must support the full implementation of the Union’s Asylum and Migration Pact, in line with fundamental rights and EU values; underlines, moreover, that, in line with the Pact, cooperation with third countries on migration must abide by EU law and respect international standards;

11. Stresses that the innovation gap is at the root of the Union’s slowing productivity growth; emphasises that funding for research and innovation should be significantly increased, should be focused on the Union’s strategic priorities and should continue to be determined by the principle of excellence; considers that there should be sufficient resources across the MFF and at national level to fund all high-quality projects, including public-private partnerships; proposes the establishment of an experimental unit with fast-track funding for testing innovative programmes and instruments; calls, in that regard, for the research and development programmes within the competitiveness fund to be granted greater autonomy under increased expert oversight;

deleted

Amendment 39

Motion for a resolution

~~Paragraph 12~~

Paragraph 47 a (new)

Motion for a resolution

Amendment

12. Stresses that the next MFF should include much greater funding for energy, transport and digital infrastructure, with priority given to cross-border connections and national links with European added value; considers that such infrastructure goes hand in hand with a deepening of the single market;

47 a. Stresses the importance of a well-funded, independent and diverse media landscape in fostering democracy and addressing harmful threats to and attacks against the European Union, such as disinformation and foreign interference; calls for the highest standards of media freedom and editorial independence for journalists to be upheld through enhanced direct funding and support mechanisms; urges the strengthening of existing EU actions to protect media freedom, preventing concentration of media ownership and safeguarding the independence of media regulators; calls for funds to be allocated to initiatives supporting independent journalism and media in both EU Member States and candidate countries;

12. Stresses that the next MFF should better allocate and include much greater funding for energy, transport, defence and digital infrastructure, with priority given to cross-border connections and national links with European added value; asks for a fixed allocation from the EU budget to be dedicated to cross-border public infrastructure; considers that such infrastructure goes hand in hand with a deepening of the single market;

Amendment 40

Motion for a resolution

Paragraph 1247 ab (new)

Motion for a resolution

Amendment

12 a. Highlights the need for infrastructure investment to also take into account the changed geopolitical situation and therefore the need for EU funding to support the efforts to enhance the resilience of both new and existing infrastructure;

47 b. Points to the need to ensure sufficient funding for civil society organisations which promote and protect democracy, the rule of law and fundamental rights at local, national and European levels; stresses that the additional funding should be made available to address the gaps created by withdrawal of international donors for organisations which are engaged in upholding the values enshrined in Article 2 TEU; emphasises that the funds should be accessible to grassroots civil society actors operating at the level of local communities while respecting the rules of sound financial management and transparency standards; underlines the essential role of the Citizens, Equality, Rights and Values programme, including its Daphne strand, in promoting European values and citizens’ rights, and stresses the need to continue at least equivalent support for civil society under the next MFF;

Amendment 41

Motion for a resolution

Paragraph 1348

Motion for a resolution

Amendment

13. Considers that the Union must develop a competitiveness framework in line with its own values and political aims and that competitiveness must therefore be understood as encompassing not only economic growth, but also social, economic and territorial cohesion and environmental sustainability;

48. Highlights the importance of strong links between respect for the rule of law and access to EU funds under the current MFF; believes that the protection of the Union’s financial interests depends on respect for the rule of law at national level; welcomes, in particular, the positive impact of the Rule of Law Conditionality Regulation in protecting the Union’s financial interests in cases of systemic and persistent breaches of the rule of law; calls on the Commission and the Council to apply the regulation strictly, consistently and without undue delay wherever necessary; emphasises that decisions to suspend or reduce Union funding over breaches of the rule of law must be based on objective criteria and not be guided by other considerations, nor be the outcome of negotiations;

13. Considers that the Union must develop a competitiveness framework in line with its own values and political aims, fulfilling the ambitions of the internal market, as laid down in Article 3(3) of the Treaty on European Union, working for the sustainable development of Europe based on balanced economic growth and price stability, a highly competitive, social market economy, aiming at full employment and social progress, a high level of protection for and improvement of the quality of the environment, as well as territorial cohesion; acknowledges that cross-border cooperation between countries and regions is essential to achieving these objectives, fostering synergies and ensuring balanced and sustainable development across the Union;

48. Underlines that compliance with Union values is a fundamental pre-requisite to access EU funds; believes that the protection of the Union’s financial interests depends on respect for the rule of law at national level as it affects the sound management of EU funds, mutual recognition of judgments, mutual trust and the functioning of the single market, and on the quality, complementarity and credibility of our rule of law toolbox; welcomes, in particular, the positive impact of the Rule of Law Conditionality Regulation in protecting the Union’s financial interests in cases of systemic and persistent breaches of the rule of law; calls on the Commission and the Council to apply the regulation strictly, uniformly, consistently and without undue delay wherever necessary; emphasises that decisions regarding the suspension or reduction of Union funding over breaches of the rule of law must be based on objective criteria, on effective and lasting improvements observed on the ground, and not be guided by other considerations, nor be the outcome of negotiations;

Amendment 42

Motion for a resolution

~~Paragraph 13 a (new)~~

Paragraph 49

Motion for a resolution

Amendment

13 a. Stresses that, in order to compete with other major global players, the European economy must also become more competitive and resilient on the supply side by investing more in the Union’s open strategic autonomy through enhanced industrial policy, with a focus on strategic sectors and critical technologies, to reduce dependence on third countries;

49. Points to the need for a strong link between the rule of law and the Union budget post-2027 and welcomes the Commission’s intention to bolster links between the recommendations in the annual rule of law report and access to funds through the budget; calls on the Commission to outline, in the annual rule of law report from 2025 onwards, the extent to which identified weaknesses in rule of law regimes potentially pose a risk to the Union budget; welcomes, furthermore, the link between respect for Union values and the implementation of the budget and calls on the Commission to actively monitor Member States’ compliance with this principle;

49. Points to the need for a stronger link between the rule of law and other Union values, and the Union budget post-2027 and welcomes the Commission’s intention to bolster links between the recommendations in the annual rule of law report and access to funds through the budget; calls on the Commission to outline, in the annual rule of law report and the report on the application of the Charter from 2025 onwards, the extent to which identified weaknesses potentially pose a risk to the Union budget and proper functioning of the single market; calls on the Commission to adjust its reports so that the recommendations are accompanied by clear objectives to be achieved, deadlines and sanctions in case of non-compliance; calls on the Commission to actively monitor Member States’ and accession countries’ compliance with those recommendations, and to ensure that social and economic rights are equally protected and promoted, and that marginalised groups are not excluded from benefiting from Union funds;

Amendment 43

Motion for a resolution

Paragraph 1450

Motion for a resolution

Amendment

14. Underlines that a more competitive, productive and socially inclusive economy helps to generate high-quality, well-paid jobs, thus enhancing people’s standard of living; emphasises that, through programmes such as the European Social Fund+ and Erasmus+, the Union budget can play an important role in supporting education and training systems, boosting workforce adaptability through reskilling and upskilling, and thus preparing people for employment in a modern economy;

50. Calls for the consolidation of a robust rule of law toolbox, building on the current conditionality provisions under the Recovery and Resilience Facility (RRF) and the horizontal enabling conditions in the Common Provisions Regulation; underlines the need for far greater transparency and consistency with regard to the application of tools to protect the rule of law and for Parliament’s role to be strengthened in the application and scrutiny of such measures; insists, furthermore, on the need for consistency across instruments when assessing breaches of the rule of law in Member States;

14. Underlines that a more competitive, productive, sustainable and socially inclusive economy helps to generate high-quality, well-paid jobs, thus enhancing people’s well-being and their standard of living; emphasises that, through programmes such as the European Social Fund+ and Erasmus+, the Union budget can play an important role in supporting education and training systems, boosting workforce adaptability through reskilling and upskilling, and thus preparing people for employment in a modern economy; stresses the need for targeted reskilling and upskilling initiatives for workers in sectors in crisis, such as the automotive industry, to ensure a just transition and prevent mass job losses and deindustrialisation in Europe; underlines the importance of adult learning and encourages the Member States, in this regard, to incentivise companies to allocate resources to training;

50. Calls for the improvement and consolidation of a robust rule of law toolbox, building on the current conditionality provisions under the Recovery and Resilience Facility (RRF) and the horizontal enabling conditions in the Common Provisions Regulation, and the relevant provisions of the Financial Regulation, which should be consistently applied across all EU funds under the new MFF; underlines the need for far greater transparency and consistency with regard to the application of tools to protect the rule of law and for Parliament’s role to be strengthened in the application and scrutiny of such measures; insists, furthermore, on the need for consistency across instruments when assessing breaches of the rule of law in Member States; against this background, acknowledges the key role that the EU JHA agencies and bodies play in ensuring the protection of the EU’s financial interests, in the framework of an effective EU anti-fraud and anti-corruption architecture;

Amendment 44

Motion for a resolution

Paragraph 1651

Motion for a resolution

Amendment

16. Stresses that, in order to compete with other major global players, the European economy must also become more competitive and resilient on the supply side by investing more in the Union’s open strategic autonomy through enhanced industrial policy and a focus on strategic sectors and critical technologies to reduce dependence on third countries;

51. Recalls that the Rule of Law Conditionality Regulation provides that final recipients should not be deprived of the benefits of EU funds in the event of sanctions being applied to their government; believes that, to date, this provision has not been effective and stresses the importance of applying a smart conditionality approach so that beneficiaries are not penalised because of their government’s actions; calls on the Commission to explore additional ways of ensuring that local and regional authorities, civil society and other beneficiaries can continue to benefit from Union funding in cases of breaches of the rule of law by national governments without weakening the application of the regulation;

16. Stresses that, in order to compete with other major global players and improve the ability of European companies to compete in global markets, the European social market economy must also become more competitive, resource-efficient, innovative and resilient on the supply side by completing the savings and investments union and investing more in the Union’s open strategic autonomy through an integrated, coordinated, targeted and horizontal industrial policy, which is vital for increasing investment in the EU’s innovation capacity, across strategic sectors and critical technologies, to reduce dependence on third countries, as emphasised in the Commission communication on the Clean Industrial Deal; underlines that such policies should be pursued taking into account regional balances in the EU and in accordance with competition policy, to avoid market entry barriers;

51. Recalls that the Rule of Law Conditionality Regulation provides that final recipients should not be deprived of the benefits of EU funds in the event of measures being applied to their Member State or its government entities; believes that, to date, this provision has not been effective and stresses the importance of applying a smart conditionality approach so that beneficiaries are not penalised because of their government’s actions; calls on the Commission to explore additional ways of ensuring that local and regional authorities, civil society and other beneficiaries can continue to benefit from Union funding in cases of breaches of the rule of law by Member States without weakening the application of the regulation and the proper management of EU funds;

Amendment 45

Motion for a resolution

~~Paragraph 16 a (new)~~

Paragraph 52

Motion for a resolution

Amendment

16 a. Underlines that competitiveness requires an urgent policy shift towards new industries and innovation, making the EU a more attractive place to do business, which will need to build on increased access to ideas, capital and talent as well as improved digital and physical infrastructure, an efficient administration, strict competition rules and international trade;

52. Stresses that a long-term budget that is fully aligned with the Union’s strategic aims and principles requires that key objectives be mainstreamed across the budget through a set of horizontal principles, building on the lessons from the current MFF;

Amendment 46

Motion for a resolution

~~Paragraph 19 a (new)~~

Paragraph 53

Motion for a resolution

Amendment

19 a. Recalls particular regional, economic, social and security challenges that specific EU regions are prone to; invites the Commission to issue an impact assessment on developing alternative indicators for the allocation of major funding under the upcoming MFF that takes this into account; deems that a debate is needed on the creation of dedicated funding aimed at making up for the economic disadvantages faced by EU citizens and businesses based on their geographical access to the EU single market;

53. Underlines, therefore, that the next MFF must ensure that, across the board, spending programmes pursue climate and biodiversity objectives, promote and protect rights and equal opportunities for all, including gender equality, support competitiveness and bolster the Union’s preparedness against threats;

53. Underlines, therefore, that the next MFF must ensure that, across the board, spending programmes pursue the security of the Union and its citizens and climate and biodiversity objectives, promote and protect fundamental rights and equal opportunities for all, including firm commitment to advancing gender equality, support competitiveness and bolster the Union’s preparedness and readiness against threats;

Amendment 47

Motion for a resolution

Paragraph 2054

Motion for a resolution

Amendment

20. Points out that Russia’s war of aggression against Ukraine has had substantial long-term economic and social consequences, in particular in Member States bordering Russia and Belarus; insists that the next MFF provide support to Ukraine and these regions, including to promote security by developing infrastructure (including dual-use infrastructure) and improve overall conditions for investment and a vibrant business environment; holds, furthermore, that the MFF should foster, in addition, the integration of Ukraine into the EU’s internal market; highlights, similarly, the challenging situations, such as the ongoing crisis in the Middle East, that affect the socio-economic development of the Union, especially in nearby Member States, and insists that the next MFF take this into account and support these regions as well;

54. Points out that effective mainstreaming is best achieved through a toolbox of measures, primarily through policy design, thorough impact assessments and solid tracking of spending and, in specific cases, spending targets; stresses the importance of gender mainstreaming in EU policies, programmes and initiatives, so as to deliver equality in practice;

Amendment 48

Motion for a resolution

~~Subheading 3~~

Paragraph 58

Motion for a resolution

Amendment

~~The green and digital transitions~~

58. Regrets that the Union’s ability to implement policy effectively within the current MFF has been undermined by stretched administrative resources and a dogmatic attachment to a policy of stable staffing, despite increasing demands and responsibilities; points, for example, to the failure to provide sufficient staff to properly enforce the Digital Services13 and Digital Markets Acts14 , thus undercutting the legislation’s effectiveness;

~~The green, digital and social transitions~~

58. Regrets that the Union’s ability to implement policy effectively within the current MFF has been undermined by stretched administrative resources and a dogmatic attachment to a policy of stable staffing, despite increasing demands and responsibilities; points, for example, to the failure to provide sufficient staff to properly enforce the Digital Services13 and Digital Markets Acts14, and the increasing challenges that JHA agencies and bodies have to respond to, thus undercutting the legislation’s effectiveness;

_________________

13 Regulation (EU) 2022/2065 of the European Parliament and of the Council of 19 October 2022 on a Single Market For Digital Services and amending Directive 2000/31/EC (Digital Services Act) (OJ L 277, 27.10.2022, p. 1, ELI: http://data.europa.eu/eli/reg/2022/2065/oj).

14 Regulation (EU) 2022/1925 of the European Parliament and of the Council of 14 September 2022 on contestable and fair markets in the digital sector and amending Directives (EU) 2019/1937 and (EU) 2020/1828 (Digital Markets Act) (OJ L 265, 12.10.2022, p. 1, ELI: http://data.europa.eu/eli/reg/2022/1925/oj).

Amendment 49

Motion for a resolution

Paragraph 2159

Motion for a resolution

Amendment

21. Highlights that the green and digital transitions are inextricably linked to competitiveness, the modernisation of the economy and the resilience of society and that, therefore, the post-2027 MFF must continue to support the twin transitions;

59. Stresses that up-front investment in interoperable IT infrastructure and data mining can also generate longer-term cost savings and hugely enhance policy delivery and tracking of spending;

21. Highlights that the green, digital and social transitions are inextricably linked to competitiveness, the modernisation of the economy and the resilience of society and that, therefore, the post-2027 MFF must continue to support these transitions, to ensure the EU’s leadership in sustainable and digital innovation, among other areas; notes that economic progress cannot be measured simply in terms of economic growth;

59. Stresses that up-front investment in interoperable IT infrastructure and data mining capabilities can also generate longer-term cost savings and hugely enhance policy delivery and tracking of spending;

Amendment 50

Motion for a resolution

~~Paragraph 22~~

Paragraph 59 a (new)

Motion for a resolution

Amendment

22. Recalls that the Union is committed to achieving climate neutrality by 2050, which requires a decarbonisation of the economy through the deployment of clean technologies, improved energy and transport infrastructure and more energy-efficient housing; notes that the Commission estimates additional investment needs to achieve climate neutrality by 2050 at 1.5 % of GDP per year compared to the decade 2011-2020 and that, while the Union budget alone cannot cover the gap, it must remain a vital contributor;

59 a. Calls for adequate financing for EU institutions, agencies and bodies, ensuring they have the necessary resources to perform their tasks and effectively address evolving challenges; stresses that, where the mandates of any JHA agencies or bodies are revised and expanded, their funding should be increased accordingly;

Amendment 51

Motion for a resolution

~~Paragraph 25~~

~~Motion for a resolution~~

~~Amendment~~

25. Stresses that peace and security are fundamental for the Union’s prosperity and social model and that the next MFF must increase its investment significantly to safeguard the Union against the myriad threats it faces, and to support Member States to effectively fulfil their mutual defence commitments in accordance with Article 42(7) of the Treaty on European Union;

~~Amendment 52~~

~~Motion for a resolution~~

~~Paragraph 26~~

~~Motion for a resolution~~

~~Amendment~~

26. Underlines that, as the Niinistö report makes clear, the fragmenting global order, increasingly frequent and intense extreme weather events, the security threat posed by Russia and Belarus, growing tensions globally, hybrid campaigns, which include cyberattacks, foreign information manipulation, disinformation and interference and the instrumentalisation of migration, and health threats are combining to heighten instability and increase the Union’s vulnerability;

~~Amendment 53~~

~~Motion for a resolution~~

~~Paragraph 28~~

~~Motion for a resolution~~

~~Amendment~~

28. Notes that, according to the Commission President, the defence spending gap currently stands at EUR 500 billion for the next decade; underlines that the Union budget alone cannot fill this gap, but, if it is better leveraged, it can have an important role to play in unlocking additional public and private investment and increasing public-private partnerships; considers, at the same time, that this should not come at the expense of social and environmental spending;

~~Amendment 54~~

~~Motion for a resolution~~

~~Paragraph 29~~

~~Motion for a resolution~~

~~Amendment~~

29. Underscores the importance of a competitive and resilient European defence technological and industrial base and considers that joint EU-level investment in defence can generate economies of scale, and thus significant savings for Member States, and help ensure the interoperability of equipment and systems; underlines that, to this end, the EU needs to invest in the new disruptive technologies that redefine the new security and defence paradigm; calls on the Commission to comprehensively map the challenges to defence financing and present a package of legislative and non-legislative measures strengthening the possibilities for financing the defence industry, benefiting all Member States equally, with enhanced provision for the eastern front line and for Member States with higher defence investment; points to the need to direct support towards the defence industry within the Union, thus creating quality high-skilled jobs; underlines the need to build on economies of scale by leveraging synergies in common procurement and multiannual planning;

~~Amendment 55~~

~~Motion for a resolution~~

~~Paragraph 31~~

~~Motion for a resolution~~

~~Amendment~~

31. Emphasises that the Union needs to ramp up funding for preparedness across the board; underlines that, in addition to efforts to mitigate climate change through the green transition, significant investment is required to adapt to climate change and potential socio-economic consequences, in particular to protect against and reduce the impact of natural disasters and severe weather events; underlines the impact of climate change on Europe’s water resilience, on which the environment, industry and livelihoods depend; considers that support for this purpose must be significantly increased in the next MFF;

~~Amendment 56~~

~~Motion for a resolution~~

~~Paragraph 33~~

~~Motion for a resolution~~

~~Amendment~~

33. Underlines that, with technological change, it has become easier for malicious and opportunistic foreign actors to spread disinformation, interfere in elections and mount cyberattacks against the Union’s interests; insists that the next MFF must invest in enhanced cybersecurity and provide sufficient resources to prevent, mitigate and counter hybrid warfare, as well as foreign disinformation campaigns; points to the importance of digital and media literacy and critical thinking in this regard, and to the need for continued Union budget support for initiatives in these areas;

~~Amendment 57~~

~~Motion for a resolution~~

~~Paragraph 36~~

~~Motion for a resolution~~

~~Amendment~~

36. Regrets the fact that external action in the current MFF has been underfunded, leading to significant recourse to special instruments and substantial reinforcements in the mid-term revision; notes, in particular, that humanitarian aid funding has been woefully inadequate, prompting routine use of the Emergency Aid Reserve;

36. Regrets the fact that external action in the current MFF has been underfunded, especially as regards funding towards the Global South, leading to significant recourse to special instruments and substantial reinforcements in the mid-term revision; notes, in particular, that humanitarian aid funding has been woefully inadequate, prompting routine use of the Emergency Aid Reserve; remarks that investing in the Global South can strengthen the economies of both donor and beneficiary countries;

~~Amendment 58~~

~~Motion for a resolution~~

~~Paragraph 37~~

~~Motion for a resolution~~

~~Amendment~~

37. Stresses that the next MFF must continue to tackle the most pressing global challenges, from fighting climate change, to providing relief in the event of natural disasters, ensuring global food security, improving healthcare systems, reducing poverty and inequality and boosting competitiveness and the security of global supply chains; emphasises, in particular, the need for support for the Union’s Southern and Eastern Neighbourhoods;

37. Stresses that the next MFF must continue to tackle the most pressing global challenges, from fighting climate change and biodiversity loss, to providing relief in the event of natural disasters, ensuring global food security, improving healthcare systems, reducing poverty and inequality and boosting competitiveness, job creation and the security of global supply chains; emphasises, in particular, the need for support for the Union’s Southern and Eastern Neighbourhoods;

~~Amendment 59~~

~~Motion for a resolution~~

~~Paragraph 39~~

~~Motion for a resolution~~

~~Amendment~~

39. Insists that, given the scale of humanitarian crises and mounting global challenges, humanitarian aid funding must be significantly enhanced and made more predictable in the next MFF, and that its use must remain solely needs-based; takes note of the additional challenges arising from the US administration’s decision to withdraw from international responsibilities regarding the Paris Agreement, the World Health Organization (WHO) and development aid, and stresses that the EU must step up its efforts, including financial commitments, and take a leading role in global governance to support the world’s most vulnerable people and regions;

~~Amendment 60~~

~~Motion for a resolution~~

~~Paragraph 40~~

~~Motion for a resolution~~

~~Amendment~~

40. Emphasises that, in a context in which global actors are increasingly using trade interdependence as a means of economic coercion, the Union must bolster its capacity to protect and advance its own strategic interests, develop more robust tools to counter coercion and ensure genuine reciprocity in its partnerships; stresses that the EU must have in place the required budgetary tools to counter the economic impact that any eventual trade war with its traditional trading partners might have;

~~Amendment 61~~

~~Motion for a resolution~~

~~Paragraph 43~~

~~Motion for a resolution~~

~~Amendment~~

~~Amendment 62~~

~~Motion for a resolution~~

~~Paragraph 44~~

~~Motion for a resolution~~

~~Amendment~~

44. Underlines that pre-accession support to Ukraine has to be distinct from financial assistance for reconstruction and post-war recovery, where needs are far more substantial and require a concerted international effort, of which support through the Union budget should be an important part; believes that the Commission should assess the potential for using frozen Russian assets to support Ukraine in fulfilling its commitments to the EU;

~~Amendment 63~~

~~Motion for a resolution~~

~~Paragraph 45~~

~~Motion for a resolution~~

~~Amendment~~

45. Is convinced that the existing mandatory revision clause in the event of enlargement should be maintained in the next framework; stresses that national envelopes should not be affected in the event of enlargement; underlines that the next MFF will also have to reform key spending areas, such as cohesion and agriculture, and plan for appropriate transitional and phasing-in measures;

45. Is convinced that the existing mandatory revision clause in the event of enlargement should be maintained in the next framework; underlines that the next MFF should also seek to improve key spending areas, including cohesion and agriculture, and plan for appropriate transitional and phasing-in measures;

~~Amendment 64~~

~~Motion for a resolution~~

~~Paragraph 50~~

~~Motion for a resolution~~

~~Amendment~~

50. Calls for the consolidation of a robust and harmonised rule of law toolbox, building on the current conditionality provisions under the Recovery and Resilience Facility (RRF) and the horizontal enabling conditions in the Common Provisions Regulation1a, as well as the relevant provisions of the Financial Regulation; insists that the toolkit should cover the entire EU budget and ensure none of the instruments used allows backsliding and creates loopholes; underlines the need for far greater transparency and consistency with regard to the application of tools to protect the rule of law and for Parliament’s role to be strengthened in the application and scrutiny of such measures; calls for the introduction of a no-fallback clause to prevent reforms from being undone and to make sure that improvements are not revoked once the programme is implemented and funded; insists, furthermore, on the need for consistency across instruments when assessing breaches of the rule of law in Member States;

~~_________________~~

1a Regulation (EU) 2021/1060 of the European Parliament and of the Council of 24 June 2021 laying down common provisions on the European Regional Development Fund, the European Social Fund Plus, the Cohesion Fund, the Just Transition Fund and the European Maritime, Fisheries and Aquaculture Fund and financial rules for those and for the Asylum, Migration and Integration Fund, the Internal Security Fund and the Instrument for Financial Support for Border Management and Visa Policy (OJ L 231, 30.6.2021, p. 159, ELI: http://data.europa.eu/eli/reg/2021/1060/oj).

~~Amendment 65~~

~~Motion for a resolution~~

~~Paragraph 51~~

~~Motion for a resolution~~

~~Amendment~~

~~Amendment 66~~

~~Motion for a resolution~~

~~Paragraph 52~~

~~Motion for a resolution~~

~~Amendment~~

52. Stresses that a long-term budget that is fully aligned with the Union’s strategic aims requires that key objectives be mainstreamed across the budget through a set of horizontal principles, building on the lessons from the current MFF; welcomes, in this regard, the recently proposed Competitiveness Compass for the EU in order to safeguard the EU’s future as an economic powerhouse, an investment destination and a manufacturing centre; highlights the importance of aligning the budget with the objectives set out in the Competitiveness Compass in order to regain Europe’s competitiveness and secure its prosperity;

~~Amendment 67~~

~~Motion for a resolution~~

~~Paragraph 53~~

~~Motion for a resolution~~

~~Amendment~~

53. Underlines, therefore, that the next MFF must ensure that, across the board, spending programmes are people-centred, pursue climate and biodiversity objectives, promote and protect rights and equal opportunities for all, including gender equality, support competitiveness and bolster the Union’s preparedness against threats, while also ensuring that the budget is simpler and more flexible in order to allow Member States to react better and faster in response to emerging challenges;

~~Amendment 68~~

~~Motion for a resolution~~

~~Paragraph 56 a (new)~~

~~Motion for a resolution~~

~~Amendment~~

~~56 a. Takes note, in this regard, of the methodology being developed for green financing reporting;~~

~~Amendment 69~~

~~Motion for a resolution~~

~~Paragraph 56 b (new)~~

~~Motion for a resolution~~

~~Amendment~~

56 b. Believes that, in view of Europe’s need to strengthen its competitive edge and enhance its open strategic autonomy, the mainstreaming of competitiveness, defence and support for SMEs should, at a minimum, be included in the IIA; calls for the integration of these aspects into the Financial Regulation to ensure that spending programmes systematically contribute to fostering innovation, enhancing Europe’s global competitiveness, strengthening defence capabilities and supporting the growth of SMEs;

~~Amendment 70~~

~~Motion for a resolution~~

~~Paragraph 57 a (new)~~

~~Motion for a resolution~~

~~Amendment~~

57 a. Underlines the importance of robust, dedicated and targeted funding for EU agencies and their staff to ensure efficient financial and economic management of EU policies; notes that appropriate staffing at this level of EU supervision is an essential prerequisite for achieving agreed policy targets and safeguarding and increasing investment levels in the EU; recalls, furthermore, in line with the European Court of Auditors’ Special Report 22/2020, that the rationale for existing agencies should be reassessed at different stages to determine their continued necessity and coherence with other agencies’ actions; calls on the Commission to ensure an efficient allocation of financial resources by identifying synergies and exploring potential structural adjustments, including mergers where appropriate, in response to evolving needs;

~~Amendment 71~~

~~Motion for a resolution~~

Paragraph 60

60. Stresses that the next MFF must be designed so as to simplify the lives of beneficiaries, harmonise rules wherever possible and cut unnecessary red tape and must be implemented as close to people as possible;

60. Stresses that the next MFF must be designed so as to simplify the procedures for beneficiaries, harmonise rules wherever possible and cut unnecessary red tape and must be implemented as close to people as possible in order to increase the absorption rate; believes that, to ensure that any potential horizontal policies or mainstreaming efforts set out for the MFF are implemented effectively and do not create unnecessary administrative complexity for the final recipients of Union funds, their programme-specific implementation should be left to sectoral legislation; calls for the introduction of a single rule book, with a uniform set of financial rules, for all EU programmes, to function as a unified framework across multiple programmes for simplified implementation for partners such as the European Investment Bank (EIB), allowing them to focus on differing objectives rather than diverging definitions, without undermining project goals and relevant standards;

Amendment 7252

~~Motion for a resolution~~

~~Paragraph 61~~

~~Motion for a resolution~~

~~Amendment~~

61. Calls for genuine simplification where there are overlapping objectives, diverging eligibility criteria and different rules governing aspects that should be uniform across programmes; considers that an assessment of which spending programmes should be included in the next MFF must be based on the above aspects, on the need to focus spending on clearly identified policy objectives and on the policy intervention logic of each programme;

61. Calls for genuine simplification where there are overlapping objectives, diverging eligibility criteria and different rules governing aspects that should be uniform across programmes; highlights, in this regard, the importance of further simplifying and tackling bureaucratic hurdles while reducing administrative burdens, particularly for SMEs; considers that an assessment of which spending programmes should be included in the next MFF must be based on the above aspects, on the need to focus spending on clearly identified policy objectives and on the policy intervention logic of each programme;

~~Amendment 73~~

~~Motion for a resolution~~

~~Paragraph 61 a (new)~~

~~Motion for a resolution~~

~~Amendment~~

61 a. Underlines that simplification should be designed primarily to reduce complexity, delays in implementation and the reporting burden for final beneficiaries and implementers, in particular smaller beneficiaries; regrets that innovation is hampered by the disproportional administrative burden and time lags for start-ups and SMEs; believes that the use of de minimis clauses and the stringent implementation of the once-only principle for reporting is necessary to further unlock the potential of European innovators; calls for an initiative to speed up administrative procedures for start-ups and SMEs; reiterates that such simplification should not be to the detriment of sufficient controls, sound financial management and transparency;

~~Amendment 74~~

~~Motion for a resolution~~

~~Paragraph 61 b (new)~~

~~Motion for a resolution~~

~~Amendment~~

61 b. Expresses serious concern about the European Court of Auditors’ conclusion, in its 2024 report, that the error rate for EU spending has risen to 5.6 % of the overall budget; urges the Commission to thoroughly consider the findings of the European Court of Auditors and implement the recommendations from both its annual and its special reports, in order to enhance the efficiency, transparency and accountability of EU budgetary spending;

~~Amendment 75~~

Motion for a resolution

62. Insists that a simpler budget must also be a more transparent budget, enabling better control of spending and reducing the risks of double funding; underlines that any reduction in programmes must be offset by a far more detailed breakdown of the budget by budget line, in contrast to some programme mergers in the current MFF, such as the Neighbourhood, Development and International Cooperation Instrument – Global Europe (NDICI – Global Europe), which is an example not to follow; calls, therefore, for a sufficiently detailed breakdown by budget line to enable proper accountability and ensure that decision-making in the annual budgetary procedure is meaningful;

62. Insists that a simpler budget must also be a more transparent budget, enabling better accountability and scrutiny as well as control of spending and reducing the risks of double ~~funding;~~funding, misuse and fraud; underlines that any reduction in programmes must be offset by a far more detailed breakdown of the budget by budget line, in contrast to some programme mergers in the current MFF, such as the Neighbourhood, Development and International Cooperation Instrument – Global Europe (NDICI – Global Europe), which is an example not to follow; calls, therefore, for a sufficiently detailed breakdown by budget line to enable proper accountability and transparency and ensure that decision-making in the annual budgetary procedure is meaningful; ~~insists that performance reviews and budgetary discussions must be transparent, with information made publicly accessible;~~

Amendment 7653

~~Motion for a resolution~~

~~Paragraph 62 a (new)~~

~~Motion for a resolution~~

~~Amendment~~

62 a. Calls for future performance-based instruments to be complemented by a single audit trail to trace budget contributions to the projects funded and the final recipients, namely the private entities benefiting from public procurement or programmes; underlines the need for project-level auditing to mitigate reputational risks in the eyes of the general public; highlights the added benefit of publicly labelling EU-funded projects; underlines the need to reduce increasing administrative bottlenecks and bureaucratic burdens; underscores that reimbursements can be based on indicative costing, if transparency and auditing standards for actual expenditures are publicly available ex post; highlights the need to link reforms and investments to achieve long-term structural changes; requests a clear methodology for the partial fulfilment of milestones and sub-level milestones;

~~Amendment 77~~

~~Motion for a resolution~~

~~Paragraph 63 a (new)~~

~~Motion for a resolution~~

~~Amendment~~

63 a. Notes that the Commission is responsible for the implementation of the budget and that many funds under shared management are implemented by Member States; stresses, therefore, the importance of a robust system of financial corrections to enable intervention in the event of serious deficiencies in the management and control systems of Member States; emphasises that such a system must be sufficiently deterrent;

~~Amendment 78~~

~~Motion for a resolution~~

~~Paragraph 67 a (new)~~

~~Motion for a resolution~~

~~Amendment~~

67 a. Notes that different programmes and projects could have varying timelines for implementation; warns against excessively burdensome administrative obligations associated with changing such programmes or projects; underlines the need for flexibility of the budget to cover evolving needs;

~~Amendment 79~~

~~Motion for a resolution~~

~~Paragraph 68~~

~~Motion for a resolution~~

~~Amendment~~

68. Calls for a root-and-branch reform of the existing special instruments to bolster crisis response capacity; underlines that the current instruments are both inadequate in size and constrained by excessive rigidity, with several effectively ring-fenced according to crisis type; points out that enhanced crisis response capacity will ensure that cohesion policy funds are not called upon for that purpose and can therefore be used for their intended investment objectives;

68. Calls for a root-and-branch reform of the existing special instruments to bolster crisis response capacity; underlines that the current instruments are both inadequate in size and constrained by excessive rigidity, with several effectively ring-fenced according to crisis type; points out that enhanced crisis response capacity and flexibility in reviewing national programmes in the event of asymmetric shocks will ensure that cohesion policy funds are not called upon for that purpose and can therefore be used for their intended investment objectives;

~~Amendment 80~~

~~Motion for a resolution~~

~~Paragraph 68 a (new)~~

~~Motion for a resolution~~

~~Amendment~~

68 a. Recalls that the RRF replaced the proposals on the Budgetary Instrument for Competitiveness and Convergence (BICC) and on the Reform Support Programme 2021 – 2027 (RSP); highlights the fact that effective fiscal coordination among Member States remains vital, post-RRF, for implementing an appropriate fiscal stance;

~~Amendment 81~~

~~Motion for a resolution~~

~~Paragraph 68 b (new)~~

~~Motion for a resolution~~

~~Amendment~~

68 b. Highlights the fact that EU funding instruments have ensured macroeconomic stabilisation at the EU level in the face of multiple crises since 2019, in part establishing the euro area budget, and also enhancing internal and external resilience and supporting Member States in financing essential and strategic investment within the Union;

~~Amendment 82~~

~~Motion for a resolution~~

~~Paragraph 68 d (new)~~

~~Motion for a resolution~~

~~Amendment~~

~~68 d. Calls for EU-level investment instruments and tools designed to minimise the cost for EU taxpayers and maximise efficiency in the provision of public goods in the EU;~~

~~Amendment 83~~

~~Motion for a resolution~~

~~Paragraph 69~~

~~Motion for a resolution~~

~~Amendment~~

69. Considers that the post-2027 MFF should include only two special instruments - one dedicated to ensuring solidarity in the event of natural disasters (the successor to the existing European Solidarity Reserve) and one for general-purpose crisis response (the successor to the Flexibility Instrument); insists that both special instruments should be adequately funded from the outset and able to carry over unspent amounts indefinitely over the MFF period; believes that all other special instruments can either be wound up or subsumed into the two special instruments or into existing programmes;

69. Highlights the need for the post-2027 MFF to include fewer special instruments, for example, one dedicated to ensuring solidarity in the event of natural disasters (the successor to the existing European Solidarity Reserve) and one for general-purpose crisis response (the successor to the Flexibility Instrument); insists that both special instruments should be adequately funded from the outset and able to carry over unspent amounts indefinitely over the MFF period;

~~Amendment 84~~

~~Motion for a resolution~~

~~Paragraph 72~~

~~Motion for a resolution~~

~~Amendment~~

72. Emphasises that, in order to maximise impact, it is imperative that spending under the next MFF be much more rigorously aligned with the Union’s strategic policy aims and carefully coordinated with spending at national level; remarks, therefore, that the Union’s strategic policy priorities and local specificities must be balanced; reiterates its position that the involvement of regional and local authorities, as well as relevant civil society organisations, is key in the design and implementation of any national approach for the next MFF;

~~Amendment 85~~

Motion for a resolution

~~Paragraph 72 a (new)~~

Paragraph 66

Motion for a resolution

Amendment

~~72 a. Calls on the Commission to focus more closely on results and outcomes in the post-2027 MFF, alongside outputs and costs, and to place greater emphasis on European cross-border added value;~~

66. Believes that, while allocating a significant portion of funding to objectives up-front, spending programmes should retain a substantial in-built flexibility reserve, with allocation to specific policy objectives to be decided by the budgetary authority; notes that the NDICI – Global Europe’s emerging challenges and priorities cushion provides a model for such a flexibility reserve, but that the decision-making process for its mobilisation must not be replicated in the future MFF; points to the need for a detailed budgetary breakdown to ensure decisions by the budgetary authority are meaningful;

~~Amendment 86~~

66. Believes that, while allocating a significant portion of funding to objectives up-front, spending programmes should retain a substantial in-built flexibility reserve, with allocation to specific policy objectives to be decided by the co-legislators and the budgetary authority, as applicable; notes that the NDICI – Global Europe’s emerging challenges and priorities cushion provides a model for such a flexibility reserve, but that the decision-making process for its mobilisation must not be replicated in the future MFF; points to the need for stronger and effective scrutiny powers of the co-legislators over the setting of policy priorities and objectives and for a detailed budgetary breakdown to ensure decisions by the budgetary authority are meaningful;

Amendment 54

Motion for a resolution

73. Considers that the RRF, with its focus on performance and links between reforms and investments and budgetary support, has helped to drive national investments and reforms that would not otherwise have taken place; ~~calls for a necessary detailed assessment of~~highlights the ~~true impact on economic growth and job~~example ~~creation~~set ofby the ~~reforms and~~RRF ~~investments~~in ~~under~~establishing ~~this~~a ~~mechanism,~~reversed ~~for~~conditionality, ~~both~~making the ~~EU as a whole and each~~allocation of ~~the Member States;~~funds ~~calls,~~contingent inupon ~~this~~certain ~~regard,~~reforms ~~for~~being ~~lessons~~carried toout bebeforehand, ~~learnt~~particularly ~~from~~in the ~~deficiencies~~area of the ~~RRF and stresses that future performance-based instruments should be designed primarily based~~rule onof ~~results~~law, and ~~impacts rather than on mere outputs;~~ calls for athis ~~detailed~~approach ~~repayment~~to ~~plan~~be ~~for~~continued ~~this~~in ~~instrument;~~the future;

Amendment 8755

~~Motion for a resolution~~

~~Paragraph 74~~

~~Motion for a resolution~~

~~Amendment~~

74. Underlines that the RRF can help to inform the delivery of Union spending under shared management; recalls, however, that the RRF was agreed in the very specific context of the COVID-19 pandemic and cannot, therefore, be replicated wholesale for future investment programmes;

74. Underlines that the RRF offers valuable lessons on leveraging public investment; recalls, however, that the RRF was agreed as a temporary instrument in the very specific context of the COVID-19 pandemic; notes that, to some extent, the RRF failed to fund investment in common European projects;

~~Amendment 88~~

~~Motion for a resolution~~

~~Paragraph 75~~

~~Motion for a resolution~~

~~Amendment~~

75. Points out that any application of an RRF-style delivery model in the next MFF would have to correct the RRF’s fundamental flaws, by involving regional and local authorities from design to delivery through a place-based and multilevel governance approach, ensuring the cross-border dimension of investment projects, focusing on results and impact rather than outputs, guaranteeing full transparency in relation to final recipients of Union spending and safeguarding Parliament’s role as legislator, budgetary and discharge authority and in holding the executive to account;

75. Takes note of the RRF’s fundamental flaws, for example, not involving regional and local authorities from design to delivery through a place-based and multilevel governance approach, not ensuring the cross-border dimension of investment projects with positive spill-over effects and strong European added value, not developing a clear methodology for milestones, targets and disbursements, not focusing on results and impact rather than outputs, not conducting impact assessments of the reforms and investment under these funds, not ensuring a single audit trail, not guaranteeing a common definition and full transparency in relation to final recipients of Union spending and not safeguarding Parliament’s role as legislator, budgetary and discharge authority and in holding the executive to account; remarks that high-level ownership by national and regional authorities is essential when it comes to ensuring the successful absorption of EU funding;

~~Amendment 89~~

~~Motion for a resolution~~

~~Paragraph 75 a (new)~~

~~Motion for a resolution~~

~~Amendment~~

75 a. Recalls that only through a rapid, transparent and effective implementation of the RRF by the Member States, as well as the fulfilment of the milestones and objectives within the agreed time frames, will these funds have the promised and expected impact on the GDP of the Union and of each of its Member States; emphasises that their success will depend on the rapid and effective deployment of the funds in the real economy, productive sectors and companies;

~~Amendment 90~~

~~Motion for a resolution~~

~~Paragraph 75 b (new)~~

~~Motion for a resolution~~

~~Amendment~~

75 b. Calls for a more responsive budget with enhanced feedback mechanisms between performance information and programme design or adjustment, thanks to better measurement and data availability; highlights the need for better dissemination of best practice across programmes and Member States; insists that a more effective budget requires comprehensive impact assessments across multiple programmes;

~~Amendment 91~~

~~Motion for a resolution~~

~~Paragraph 77 a (new)~~

~~Motion for a resolution~~

~~Amendment~~

77 a. Notes with concern that country-specific recommendations (CSRs) have been gaining importance in the economic and budgetary architecture of the Union over time, and that mechanisms linked to CSRs, or any increase in the discretionary power of the Commission in this regard, should be accompanied by greater democratic accountability;

~~Amendment 92~~

~~Motion for a resolution~~

~~Paragraph 78~~

~~Motion for a resolution~~

~~Amendment~~

78. Underlines that, to date, the Union budget has been required only to repay interest related to NGEU and that, from 2028 onwards, the budget will also have to repay the capital; underscores that the total costs for NGEU capital and interest repayments are projected to be around EUR 20-30 billion a year from 2028;

78. Notes that, to date, the Union budget has been required only to repay interest related to NGEU and that, from 2028 onwards, the budget will also have to start repaying principal amounts; underscores that the total costs for NGEU capital and interest repayments are projected to be around EUR 20-30 billion a year from 2028; calls on the Commission to present a plan for an effective approach to the final stage of the NGEU programme, which will ensure effective deployment of funds, robust scrutiny of implementation and increased transparency regarding final beneficiaries; notes that the higher debt burden makes the Union budget more vulnerable to interest rate hikes and can lead to a reduced capacity to respond to future challenges; encourages the Commission to explore options to reduce the overall debt burden;

~~Amendment 93~~

~~Motion for a resolution~~

~~Paragraph 82~~

~~Motion for a resolution~~

~~Amendment~~

82. Underlines that, as described above, the budgetary needs post-2027 will be significantly higher than the amounts allocated to the 2021-2027 MFF; insists, therefore, that the Union will only be able to tackle the significant challenges it faces and deliver on its policy objectives if the next MFF is endowed with the resources necessary to meet the Union’s challenges; underlines the need for a thorough evaluation of expenditure and a healthy budgetary balance; underlines the specific regional economic, social and security challenges that need to be reflected in the future MFF; underlines the need to ensure upward socio-economic convergence within the EU;

~~Amendment 94~~

Motion for a resolution

83. Considers that all instruments and tools should be explored in order to provide the Union with those resources, in line with its priorities and identified needs;

83. Considers that all instruments and tools should be explored in order to provide the Union with those resources, in line with its priorities and identified ~~needs; underlines that, in this matter, the EU must mobilise new~~needs, ~~own~~and ~~resources,~~aligned ~~after~~with ~~conducting~~Union anvalues ~~impact~~and ~~assessment;~~principles;

~~Amendment 95~~

~~Motion for a resolution~~

~~Paragraph 84 a (new)~~

~~Motion for a resolution~~

~~Amendment~~

84 a. Stresses the need to ensure adequate funding in the next MFF; stresses that the introduction of new own resources that fulfil the criteria of simplicity, transparency, predictability and fairness, after a careful impact assessment to ensure a fair and balanced approach for all Member States, are an essential means of financing EU priorities; considers it therefore necessary to enhance coordination on matters of taxation and duties also at the level of the Organisation for Economic Co-operation and Development; notes the need for fair and proportionate allocation between national contributions and EU spending for policy areas related to European public goods;

~~Amendment 96~~

~~Motion for a resolution~~

~~Paragraph 85~~

~~Motion for a resolution~~

~~Amendment~~

85. Recalls its support for the amended Commission proposal on the system of own resources; calls on the Council to adopt this proposal as a matter of urgency; points, furthermore, to the need to explore additional innovative and genuine new own resources, in order to cover the higher spending needs;

85. Recalls its support for the amended Commission proposal on the system of own resources; reiterates that the promise of new own resources was a condition for the agreement on NGEU and points out that the absence of new own resources will put a considerable strain on the Union’s budget in light of the refinancing obligations under NGEU; reiterates the need for a careful assessment beforehand, to ensure a fair and balanced approach; calls on the Council to adopt this proposal as a matter of urgency; points, furthermore to the need, after an impact assessment, to explore additional innovative and genuine new own resources, in order to cover the higher spending needs; calls on the Member States and the Commission to increase the overall VAT revenues by combating fraud, improving efficiency, boosting economic growth and driving digitalisation, while ensuring that changes in VAT rates or exemptions do not disproportionately affect Member States with unique geographical constraints; calls on the Council to ensure that any VAT contribution increases above the current 0.3 % rate remain proportional to GDP and account for geographical limitations, safeguarding fairness for isolated or geographically disadvantaged Member States;

~~Amendment 97~~

~~Motion for a resolution~~

~~Paragraph 86 a (new)~~

~~Motion for a resolution~~

~~Amendment~~

~~86 a. Highlights the continuing uncertainty surrounding the repayment of the NGEU borrowing costs, as no repayment plan has been agreed;~~

~~Amendment 98~~

~~Motion for a resolution~~

~~Paragraph 91~~

~~Motion for a resolution~~

~~Amendment~~

91. Expects the Commission, as part of the package of MFF proposals, to put forward a new IIAin line with the realities of the new budget, including with respect to the management of contingent liabilities;

91. Expects the Commission, as part of the package of MFF proposals, to put forward a new IIA in line with the realities of the new budget, including with respect to the management of contingent liabilities and the mainstreaming of competitiveness, SMEs and defence;

~~Amendment 99~~

~~Motion for a resolution~~

~~Paragraph 91 a (new)~~

~~Motion for a resolution~~

~~Amendment~~

~~91 a. Stresses the importance of parliamentary scrutiny of the implementation of the Union budget under the MFF and of compliance with sectoral legislation;~~

ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR FOR OPINION HAS RECEIVED INPUT

Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur for opinion declares that he received input from the following entities or persons in the preparation of the ~~draft~~opinion, ~~opinion:~~prior to the adoption thereof in committee:

Entity and/or person

~~European Commission - DG BUDG~~

Constantinos Hadjisavvas

~~European Commission - Secretariat General~~

~~Institut Jacques Delors~~

~~European Commission - DG ECFIN~~

~~European Commission - Secretariat General REFORM~~

~~ECA~~

~~EIB~~

~~Climate Strategy~~

The list above is drawn up under the exclusive responsibility of the rapporteur for the opinion.

INFORMATION ON ADOPTION IN COMMITTEE ASKED FOR OPINION

Date adopted

~~31.3.2025~~

8.4.2025

Result of final vote

+ : 3746

- : 1018

0 : 16

Members present for the final vote

Georgios Aftias, Rasmus Andresen, Francisco Assis, René Aust, Stefan Berger, Damian Boeselager, Gilles Boyer, Giovanni Crosetto, Fabio De Masi, Engin Eroglu, Marco Falcone, Markus Ferber, Jonás Fernández, Claire Fita, Dirk Gotink, Enikő Győri, Michalis Hadjipantela, Eero Heinäluoma, Billy Kelleher, Tomáš Kubín, Aurore Lalucq, Rada Laykova, Siegfried Mureşan, Fernando Navarrete Rojas, Denis Nesci, Luděk Niedermayer, Ľudovít Ódor, Nikos Papandreou, Gaetano Pedulla', Kira Marie Peter-Hansen, Pierre Pimpie, Friedrich Pürner, Evelyn Regner, René Repasi, Jussi Saramo, Paulius Saudargas, Marie Toussaint, Anouk Van Brug, Lara Wolters, Roberts Zīle

Abir Al-Sahlani, Giuseppe Antoci, Jaume Asens Llodrà, Pernando Barrena Arza, Nikola Bartůšek, François-Xavier Bellamy, Ioan-Rareş Bogdan, Krzysztof Brejza, Saskia Bricmont, Jorge Buxadé Villalba, Jaroslav Bžoch, Mélissa Camara, Damien Carême, Caterina Chinnici, Veronika Cifrová Ostrihoňová, Paulo Cunha, Lena Düpont, Marieke Ehlers, Estrella Galán, Raquel García Hermida-Van Der Walle, Branko Grims, Evin Incir, Paolo Inselvini, Marina Kaljurand, Assita Kanko, Fabienne Keller, Mary Khan, Moritz Körner, Alice Kuhnke, András László, Murielle Laurent, Fabrice Leggeri, Jeroen Lenaers, Lukas Mandl, Erik Marquardt, Michael McNamara, Ana Catarina Mendes, Verena Mertens, Nadine Morano, Matjaž Nemec, Ana Miguel Pedro, Emil Radev, Chloé Ridel, Ilaria Salis, Birgit Sippel, Krzysztof Śmiszek, Cecilia Strada, Georgiana Teodorescu, Alice Teodorescu Måwe, Tomas Tobé, Milan Uhrík, Tom Vandendriessche, Kristian Vigenin, Charlie Weimers, Jadwiga Wiśniewska, Alessandro Zan, Javier Zarzalejos

Substitutes present for the final vote

~~Paolo Borchia, Regina Doherty, Gerben-Jan Gerbrandy, Antonio López-Istúriz White, Angelika Winzig~~

Fredis Beleris, Anna-Maja Henriksson, Javier Moreno Sánchez, Jan-Christoph Oetjen, Pekka Toveri, Sebastian Tynkkynen, Roberto Vannacci, Ana Vasconcelos, Michał Wawrykiewicz, Juan Ignacio Zoido Álvarez

Members under Rule 216(7) present for the final vote

~~Reinis Pozņaks, Sebastiaan Stöteler, Roberto Vannacci~~

Mireia Borrás Pabón, Siegbert Frank Droese, Martine Kemp

FINAL VOTE BY ROLL CALL BY THE COMMITTEE ASKED FOR OPINION

~~ECR~~

~~Crosetto Giovanni, Nesci Denis, Poznaks Reinis, Zile Roberts~~

PPE

Aftias Georgios, Berger Stefan, Doherty Regina, Falcone Marco, Ferber Markus, Gotink Dirk, Hadjipantela Michalis, López-Istúriz White Antonio, Muresan Siegfried, Navarrete Rojas Fernando, Niedermayer Ludek, Saudargas Paulius, Winzig Angelika

Beleris Fredis, Bellamy François-Xavier, Bogdan Ioan-Rares, Chinnici Caterina, Cunha Paulo, Düpont Lena, Grims Branko, Kemp Martine, Lenaers Jeroen, Mandl Lukas, Mertens Verena, Morano Nadine, Pedro Ana Miguel, Radev Emil, Teodorescu Måwe Alice, Tobé Tomas, Toveri Pekka, Wawrykiewicz Michal, Zarzalejos Javier, Zoido Álvarez Juan Ignacio

Renew

~~Boyer Gilles, Eroglu Engin, Gerbrandy Gerben-Jan, Kelleher Billy, Ódor Ludovít, Van Brug Anouk~~

Al-Sahlani Abir, Cifrová Ostrihonová Veronika, García Hermida-Van Der Walle Raquel, Henriksson Anna-Maja, Keller Fabienne, Körner Moritz, McNamara Michael, Oetjen Jan-Christoph, Vasconcelos Ana

S&D

~~Assis Francisco, Fernández Jonás, Fita Claire, Heinäluoma Eero, Lalucq Aurore, Papandreou Nikos, Regner Evelyn, Repasi René, Wolters Lara~~

Incir Evin, Kaljurand Marina, Laurent Murielle, Mendes Ana Catarina, Moreno Sánchez Javier, Nemec Matjaz, Ridel Chloé, Sippel Birgit, Smiszek Krzysztof, Strada Cecilia, Vigenin Kristian, Zan Alessandro

~~The Left~~

~~Saramo Jussi~~

Verts/ALE

~~Andresen Rasmus, Boeselager Damian, Peter-Hansen Kira Marie, Toussaint Marie~~

Asens Llodrà Jaume, Bricmont Saskia, Camara Mélissa, Kuhnke Alice, Marquardt Erik

ECR

Weimers Charlie

ESN

~~Aust René, Laykova Rada~~

Droese Siegbert Frank, Khan Mary, Uhrík Milan

~~De Masi Fabio, Pürner Friedrich~~

PfE

~~Borchia Paolo, Gyori Eniko, Kubín Tomás, Pimpie Pierre, Stöteler Sebastiaan, Vannacci Roberto~~

Bartusek Nikola, Borrás Pabón Mireia, Buxadé Villalba Jorge, Bzoch Jaroslav, Ehlers Marieke, László András, Leggeri Fabrice, Vandendriessche Tom, Vannacci Roberto

The Left

~~Pedulla' Gaetano~~

Antoci Giuseppe, Barrena Arza Pernando, Carême Damien, Galán Estrella, Salis Ilaria

ECR

Inselvini Paolo, Kanko Assita, Teodorescu Georgiana, Tynkkynen Sebastian, Wisniewska Jadwiga

PPE

Brejza Krzysztof

Key: