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MOTION FOR A RESOLUTION (2020/2923(RSP)

On the Multiannual Financial Framework 2021-2027, the InterInstitutional Agreement, the EU Recovery Instrument and the Rule of Law Regulation

B-9-2020-0428

on behalf of the PPE Group · Rapporteur: Manfred Weber, Esteban González Pons, Siegfried Mureşan, Jan Olbrycht, José Manuel Fernandes, Petri Sarvamaa

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Parliament's resolution welcomes the political agreements of 5 and 10 November 2020 on the Multiannual Financial Framework 2021-2027, the InterInstitutional Agreement, the EU Recovery Instrument and the Rule of Law Regulation. It sets out what those agreements contain: an EUR 1.8 trillion package, an EUR 16 bn top-up for EU flagship programmes, a roadmap for new own resources, climate and biodiversity spending shares, and a functioning Rule of Law conditionality. It welcomes the European Council's endorsement of 10 and 11 December 2020 and the entry into force of the package on 1 January 2021 with the legal texts unchanged. It regrets the delay caused by the unanimity rule in the Council and states that European Council conclusions cannot interpret legislation or bind the Commission in applying legal acts. It insists the Rule of Law Regulation applies from 1 January 2021 to all commitments and payments, without guidelines, and that Parliament will defend its validity before the Court of Justice of the European Union. It calls for full parliamentary involvement in Next Generation EU and for the unanimity hurdle to be addressed in the Conference on the Future of Europe.

Key points

  1. Welcomes the political agreements of 5 November 2020 on the Rule of Law Regulation and of 10 November 2020 on the MFF, the IIA and the EU Recovery Instrument.
  2. The package is an unprecedented EUR 1.8 trillion, made up of the MFF 2021-2027 (EUR 1074 moving progressively to EUR 1085 bn) and the Recovery Instrument (EUR 750 bn).
  3. An EUR 16 bn top-up to the MFF goes to EU flagship programmes identified by Parliament and to strengthen the budgetary response to unforeseen events.
  4. A legally binding roadmap introduces new own resources during the next MFF, sufficient at least to cover future repayment costs of the EU Recovery Instrument.
  5. Climate-related spending must be at least 30 % of the MFF and the NGEU, and biodiversity-related spending 7.5 % in 2024 and 10 % from 2026 onwards of the MFF.
  6. The agreements include elements to monitor spending on gender equality and mainstreaming and a functioning Rule of Law conditionality.
  7. Parliament gets an enhanced role as budgetary authority in the management of the EU Recovery Instrument and external assigned revenue, and in setting up future emergency instruments based on Article 122 TFEU.
  8. Welcomes the European Council's endorsement of 10 and 11 December 2020 and the entry into force of the MFF, IIA, EURI and Rule of Law Regulation on 1 January 2021, with the legal texts unchanged.
  9. Strongly regrets the delay caused by the unanimity rule in the Council and states that the European Council conclusions on the Rule of Law Regulation are superfluous.
  10. Recalls that the European Council does not exercise legislative functions and that its political declarations cannot interpret legislation, as interpretation belongs to the Court of Justice.
  11. Recalls that the Commission is elected by Parliament, must ensure application of the Treaties, is completely independent and responsible to Parliament, which can use the discharge procedure and other legal means.
  12. The Rule of Law Regulation applies from 1 January 2021 to all commitments and payments, cannot be subject to guidelines, and Parliament will defend its validity before the Court and ask for an expedited procedure.

Who is affected

  • EU member states and their governments, who must apply the Rule of Law Regulation and face the unanimity rule in the Council.
  • The Commission, which must apply the Treaties and the Rule of Law Regulation and remain independent and accountable to Parliament.
  • The European Council, whose conclusions cannot bind the Commission or interpret legislation.
  • EU flagship programmes (EU4Health, Horizon Europe, Erasmus+, Frontex, InvestEU and others), which receive the EUR 16 bn top-up.
  • EU taxpayers and beneficiaries of EU funds, whose money is protected by the Rule of Law conditionality.

Figures and deadlines

  • EUR 1.8 trillion, the total package.
  • EUR 1074 moving progressively to EUR 1085 bn, the MFF 2021-2027.
  • EUR 750 bn, the Recovery Instrument.
  • EUR 16 bn top-up to the MFF 2021-2027.
  • At least 30 % of the MFF and the NGEU for climate-related spending.
  • 7.5 % in 2024 and 10 % in 2026 onwards of the MFF for biodiversity-related spending.
  • 1 January 2021, the date the Rule of Law Regulation applies from and the package enters into force.

Legal basis: Articles 2, 14, 15, 16 and 17 TEU and Articles 295, 310, 311, 312, 322 TFEU.