|Author (Corporate)||European Commission: Secretariat General|
|Series Details||COM (2020) 445|
Proposed Decision published by the European Commission on 27 May 2020, which amends certain elements of the original proposal relating to the system of Own Resources of the European Union (EU) in light of the investment needs in the aftermath of the COVID-19 (coronavirus) pandemic.
In the aftermath of the sanitary emergency, the Commission set out in its umbrella Communication a comprehensive plan for socioeconomic recovery across the European Union (EU). The proposed long-term budget (MFF) is seen as the main tool to achieve the endeavour, including its new temporary instrument. The Commission's aim is to repair the immediate economic and social damage caused by the pandemic and set the EU on the path to a sustainable and resilient recovery, as set out by its Communication on Europe's Recovery Plan.
Under the amended proposal, the European Commission is authorised to borrow funds on behalf of the EU up to the amount of €750 billion on the capital markets. The proceeds are to be transferred to EU programmes in accordance with the temporary and exceptional EU Recovery Instrument. Because of this instrument's nature, the powers granted to the Commission to borrow in this Decision are limited in size, duration and scope. This removes the possibility for the exceptional powers under this proposal to be used for any purpose other than tackling the economic and social consequences of the pandemic. The EU budget is to start making the required repayments from 2028, and to be fully repaid by 2058.
The ceilings defined in the Own Resources Decision determine the maximum amount of own resources the EU can request the Member States to make available in a given year to finance its expenditure. It is proposed that the ceiling to cover annual appropriation for payments shall be set at 1,40% of EU GNI and the ceiling to cover annual appropriations for commitments at 1,46% of the EU GNI.
|Subject Categories||Economic and Financial Affairs|
|Subject Tags||EU Budget, Multiannual Financial Framework [MFF]|
|International Organisations||European Union [EU]|