Proposal for a Council Regulation amending Regulation (EU, Euratom) 2020/2093 laying down the multiannual financial framework for the years 2021 to 2027

Author (Corporate)
Series Details COM (2023) 337
Publication Date 20/06/2023
Content Type , ,

Summary:

Legislative initiative tabled by the European Commission on 20 June 2023, introducing amendments to Regulation (EU, Euratom) 2020/2093 laying down the Multiannual Financial Framework (MFF) for the years 2021 to 2027.

Further information:

Regulation (EU, Euratom) 2020/2093 - also known as the MFF Regulation - sets, for the designated period, the annual maximum amounts - also known as MFF ceilings - for EU expenditure as a whole and for the main categories of expenditure reflecting major policy areas - also known as MFF headings.

As part of the overall political agreement on the MFF 2021-2027, the European Commission issued in December 2020 a declaration undertaking to present by January 2024 a review of the functioning of the MFF, which could be accompanied by relevant proposals for the revision of the MFF Regulation. In line with this commitment, and with the statement adopted together with European Union's (EU) annual budget for 2023, the European Commission adopted a Communication assessing the functioning of the MFF and whether the EU budget can continue to provide common means to address common challenges. This assessment concluded that, for the EU to deliver on all its objectives until the end of 2027, a targeted revision of the MFF 2021-2027 was necessary.

The EU faced a number of challenges since 2020 when the MFF was subject to agreement by the Member States, including the COVID-19 (coronavirus) pandemic, Russia's invasion of Ukraine, the ensuing energy crisis and the related spike in inflation and interest rates. The Commission sought to act swiftly and use all means at its disposal to respond. The limited budgetary flexibilities embedded in the MFF were used almost until exhaustion, and redeployment possibilities reached their limits, hindering the EU's budget capacity to address other pressing challenges.

The proposed revision includes budgetary provisions for a dedicated Facility to support Ukraine up to 2027, an increased ceiling for Heading 4 on migration and border management, and an increased ceiling for Heading 6 in a context of geopolitical tension.

The draft law was adopted by the European Commission on 20 June 2023 as part of the mid-term review of the Multiannual Financial Framework (MFF) for the period between 2021 and 2027. The Council of the European Union held a first discussion on the proposed amendments on 10 July, and a draft negotiating box was drawn up by the Council on 30 August to facilitate the discussions. The plenary of the European Parliament adopted an interim report comprising a position on 3 October. The European Council held a discussion on this matter during its summit in December 2023, but failed to reach an agreement. A political agreement among national leaders on the mid-term MFF review was eventually reached during a special European Council meeting on 1 February 2024, allowing for an informal agreement between the co-legislators on a compromise text for this file to be reached on 7 February.

Source Link https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2023:337:FIN
Related Links
Commentary and Analysis
Politico, 19/06/2023: EU budget top-up for Ukraine is a hard sell https://www.politico.eu/article/brussels-budget-eu-commission-covid-inlfation-to-ask-a-top-up-for-eu-coffers-but-its-a-hard-sell/
Centro Studi sul Federalismo: Commentary No 267, 03/07/2023: The Mid-Term EU Budget Review and the Growing EU Support for the War Effort https://www.csfederalismo.it/it/pubblicazioni/commenti/the-mid-term-eu-budget-review-and-the-growing-eu-support-for-the-war-effort
Center for Global Development: Blog, 05/07/2023: Winners and Losers in the Replenishment of the EU Budget https://www.cgdev.org/blog/winners-and-losers-replenishment-eu-budget
European Parliamentary Research Service (EPRS): At a Glance, 28/09/2023: Mid-term revision of the 2021-2027 MFF: Interim report on Commission proposal https://www.europarl.europa.eu/thinktank/en/document/EPRS_ATA(2023)753945
Politico, 01/02/2024: How Giorgia Meloni and French hospitality got Orbán to OK Ukraine aid https://www.politico.eu/article/how-eu-leaders-pushed-hungary-orban-ukraine-aid-support-meloni-italy/
Euronews, 03/02/2024: The truth behind the €64.6-billion budget deal agreed by EU leaders https://www.euronews.com/my-europe/2024/02/03/the-truth-behind-the-646-billion-budget-deal-agreed-by-eu-leaders

News
Politico, 20/06/2023: Commission asks for €66B EU budget top-up https://www.politico.eu/article/commission-asks-for-e66b-top-up-for-eu-budget/
Reuters, 16/09/2023: Lithuania calls for more money for Ukraine in EU budget review https://www.reuters.com/world/europe/lithuania-calls-more-money-ukraine-eu-budget-review-2023-09-16/
EUObserver, 20/09/2023: MEPs call for extra €10bn to boost EU's long-term budget https://euobserver.com/green-economy/157445
Politico, 27/10/2023: EU countries tell Brussels to tighten its own belt https://www.politico.eu/article/budget-slovakia-spending-priorities-frugals-debt-funds-hungary-european-commission/
Euronews, 01/11/2023: Brussels opens Pandora's box with €100 billion budget top-up request https://www.euronews.com/my-europe/2023/11/01/brussels-opens-pandoras-box-with-100-billion-budget-top-up-request
Politico, 27/11/2023: Brussels must trim €13B from proposed budget increase, EU capitals say https://www.politico.eu/article/eu-capitals-tell-brussels-to-cut-down-its-budget-increase/
Reuters, 30/11/2023: EU deal on budget review stuck because of Germany's internal fiscal problems https://www.reuters.com/markets/europe/eu-deal-budget-review-stuck-because-germanys-internal-fiscal-problems-2023-11-30/
EurActiv, 07/12/2023: One week before EU summit, member states still sceptical on budget review https://www.euractiv.com/section/economy-jobs/news/one-week-before-eu-summit-member-states-still-sceptical-on-budget-review/
Science Business, 15/12/2023: Proposed Horizon cut stuck as EU leaders fail to reach budget review deal https://sciencebusiness.net/news/horizon-europe/proposed-horizon-cut-stuck-eu-leaders-fail-reach-budget-review-deal
Politico, 02/01/2024: Europe needs more cash, Belgian PM says https://www.politico.eu/article/belgium-de-croo-interview-pm-europe-needs-more-cash/
Science Business, 01/02/2024: Horizon Europe budget to be cut by €2.1B, as defence research gets a €1.5B boost https://sciencebusiness.net/news/horizon-europe/horizon-europe-budget-be-cut-eu21b-defence-research-gets-eu15b-boost
Politico, 01/02/2024: EU approves €50B Ukraine aid as Viktor Orbán folds https://www.politico.eu/article/ukraine-gets-eu-aid-as-orban-folds/
EUObserver, 07/02/2024: EU budget offers little on post-2025 climate funds https://euobserver.com/green-economy/158046

Official
European Parliament: Legislative Observatory: Procedure File for Proposal on Multiannual financial framework for the years 2021 to 2027 (2023/0201(APP)) https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?lang=en&reference=2023/0201(APP)
European Parliament: Legislative Train Schedule: Review of the functioning of the multiannual financial framework (MFF) https://www.europarl.europa.eu/legislative-train/theme-an-economy-that-works-for-people/file-mff-review
European Commission: EU Budget: 2021-2027 long-term EU budget & NextGenerationEU https://commission.europa.eu/strategy-and-policy/eu-budget/long-term-eu-budget/2021-2027_en
General Secretariat of the Council (EU): Policies: Mid-term revision of the EU long-term budget 2021-2027 https://www.consilium.europa.eu/en/policies/eu-long-term-budget/mid-term-revision-of-the-eu-long-term-budget-2021-2027/
European Commission: Press Release, 20/06/2023: EU budget: Commission proposes to reinforce long-term EU budget to face most urgent challenges https://ec.europa.eu/commission/presscorner/detail/en/ip_23_3345
European Commission: Questions and Answers: Commission proposes to reinforce long-term EU budget to face most urgent challenges (20 June 2023) https://ec.europa.eu/commission/presscorner/detail/en/qanda_23_3346
European Commission: Remarks by Commissioner Hahn at the press conference on the review of the Multiannual Financial Framework (20 June 2023) https://ec.europa.eu/commission/presscorner/detail/en/speech_23_3397
European Parliament: Press Release, 03/10/2023: Parliament argues for a top-up to multi-annual budget for crisis response https://www.europarl.europa.eu/news/en/press-room/20230929IPR06130/
European Council: Press statement by the President of the European Council Charles Michel (15 December 2023) https://www.consilium.europa.eu/en/press/press-releases/2023/12/15/press-statement-by-the-president-of-the-european-council-charles-michel/
European Parliament: Press Release, 15/12/2023: MEPs call for urgent action on EU’s long-term budget amid Council impasse https://www.europarl.europa.eu/news/en/press-room/20231215IPR15938/
European Council: Remarks by President Charles Michel at the press conference of the Special European Council (1 February 2024) https://www.consilium.europa.eu/en/press/press-releases/2024/02/01/remarks-by-president-charles-michel-at-the-press-conference-of-the-special-meeting-of-the-european-council/
European Commission: Press Release, 01/02/2024: First time ever revision of the EU long-term budget will help address the EU's main challenges https://ec.europa.eu/commission/presscorner/detail/en/ip_24_602
European Parliament: Press Release, 07/02/2024: Deal on mid-term revision of EU’s long-term budget https://www.europarl.europa.eu/news/en/press-room/20240205IPR17408/
European Commission: Press Release, 07/02/2024: Commission welcomes the provisional agreement to reinforce the EU long-term budget and to boost Europe's competitiveness and sovereignty https://ec.europa.eu/commission/presscorner/detail/en/ip_24_681

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