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RECOMMENDATION (09970/2020 – C90409/2020 – 2018/0166(APP))

On the draft Council regulation laying down the multiannual financial framework for the years 2021 to 2027

A-9-2020-0260

Committee on Budgets · Rapporteur: Jan Olbrycht, Margarida Marques

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The Committee on Budgets recommends that Parliament give its consent to the draft Council regulation setting the multiannual financial framework (MFF) for 2021 to 2027. The draft regulation sets seven-year ceilings on EU spending, rules for adjusting them, and special instruments for unforeseen needs. It creates a Brexit Adjustment Reserve, a Solidarity and Emergency Aid Reserve, a European Globalisation Adjustment Fund, a Single Margin Instrument and a Flexibility Instrument. Parliament also approves joint declarations with the Council and the Commission on reinforcing programmes, new own resources, budgetary scrutiny and climate and biodiversity tracking.

Committee position. The Committee on Budgets recommends that Parliament give its consent to the draft Council regulation on the 2021-2027 multiannual financial framework, and approves the annexed joint declarations and its own declaration.

Key points

  1. Parliament gives its consent to the draft Council regulation laying down the MFF for 2021 to 2027, as set out in the annex.
  2. Parliament approves the joint declarations by Parliament, the Council and the Commission, its own declaration, and takes note of the Commission declarations annexed to the resolution.
  3. The MFF runs for seven years from 1 January 2021, is laid down in 2018 prices, and the three institutions must respect its annual expenditure ceilings.
  4. Commitment and payment appropriations may be entered in the budget over and above the MFF ceilings when special instruments are used or when a guarantee for financial assistance to member states is mobilised.
  5. The Commission makes annual technical adjustments to the MFF, including revaluing ceilings, calculating margins and applying a fixed deflator of 2 % per year.
  6. Revenue from fines under Council Regulations (EC) No 1/2003 and (EC) No 139/2004 funds additional allocations to listed programmes from 2022 to 2027, totalling EUR 11 000 million.
  7. The MFF ceilings are adjusted when suspensions of budgetary commitments linked to sound economic governance or the rule of law conditionality regulation are lifted, and when new shared-management rules or programmes are adopted after 1 January 2021.
  8. Thematic special instruments are set up: the European Globalisation Adjustment Fund, the Solidarity and Emergency Aid Reserve and the Brexit Adjustment Reserve.
  9. Non-thematic special instruments are set up: the Single Margin Instrument and the Flexibility Instrument, with limits on their use.
  10. The MFF may be revised in the event of unforeseen circumstances, revision of the Treaties, enlargement of the Union or reunification of Cyprus.
  11. Maximum amounts are set for Union contributions to large-scale projects: EUR 13 202 million for the space programme and EUR 5 000 million for the ITER project.
  12. The Commission must present a proposal for a new multiannual financial framework before 1 July 2025, and a review of the MFF by 1 January 2024.

Who is affected

  • Member states and EU programmes, which receive funding under the 2021-2027 ceilings and special instruments.
  • Sectors and member states worst affected by the United Kingdom's withdrawal, which may receive Brexit Adjustment Reserve assistance.
  • The European Parliament, the Council and the Commission, which must cooperate in the budgetary procedure and comply with the ceilings.
  • Programmes listed in Annex II, which receive additional allocations from fines revenue.

Figures and deadlines

  • EUR 11 000 million: total additional allocations for 2022 to 2027 under the programme-specific adjustment.
  • EUR 1 500 million to EUR 2 000 million: annual additional allocations for each year 2022 to 2026.
  • EUR 186 million: maximum annual amount of the European Globalisation Adjustment Fund.
  • EUR 1 200 million: maximum annual amount of the Solidarity and Emergency Aid Reserve.
  • EUR 400 million: maximum amount that may be financed from the following year's Solidarity and Emergency Aid Reserve in exceptional cases.
  • EUR 5 000 million: maximum amount of the Brexit Adjustment Reserve.
  • EUR 915 million: ceiling for the annual amount available for the Flexibility Instrument.
  • EUR 13 202 million and EUR 5 000 million: maximum Union contributions to the space programme and the ITER project.

Legal basis: Article 312 of the Treaty on the Functioning of the European Union and Article 106a of the Treaty establishing the European Atomic Energy Community.