Council Regulation (EU, Euratom) 2020/538 amending Regulation (EU, Euratom) No 1311/2013 laying down the multiannual financial framework for the years 2014-2020 as regards the scope of the Global Margin for Commitments

Summary:

Council Regulation (EU, Euratom) 2020/538 - adopted by the Council of the European Union in April 2020 - aimed at removing the limitations in the scope of the Global Margin for Commitments (Article 14) set out in Regulation No 1311/2013 (the MFF Regulation).

Further information:

In the context of the support provided by the European Commission to the Member States in address the impact of the COVID-19 outbreak, a number of measures were put forward as part of the Coronavirus Response Investment Initiative (CRII). In order to provide an adequate response to the needs resulting from the pandemic, the Commission proposed to activate the Emergency Support Instrument and to further reinforce the Union Civil Protection Mechanism/rescEU.

This requires the mobilisation of special instruments as there are no available margins or scope for redeployment in heading 3 of the Multiannual Financial Framework (MFF 2014-2020). Based on the existing definition and scope of the special instruments in the MFF Regulation, only the Flexibility Instrument and the Contingency Margin can be used for the purposes of addressing the pandemic. However, the availabilities under those instruments are not enough to cover the financing needs of the above-mentioned proposals.

Given that this was the last year of the existing MFF and the unprecedented crisis facing the European Union (EU), the Commission adopted a legislative initiative on 2 April 2020 to amend the MFF Regulation in order to remove the limitations in the scope of the Global Margin for Commitments (Article 14) so as to allow the full financing of the €3 billion for the coronavirus outbreak response (proposed separately). The Commission proposes to delete the references to 'youth and employment' and 'for migration and security measures' from the wording of the relevant Articles.

This proposal was adopted by the European Commission as part of a package of measures on mobilising the full extent of the EU Budget. The Council of the European Union adopted this draft law on 14 April, followed by the European Parliament on 17 April. The Act was published in the Official Journal on 17 April 2020.

• Primary Source

Commentary and Analysis

EPRS: At a Glance, April 2020: Amendment of the 2014-2020 MFF regulation: Using the global margin for commitments to finance measures in the healthcare sector under the Emergency Support Instrument https://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_ATA(2020)649374

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Official

EUR-LEX: COM(2020)174: Proposal for a Council Regulation amending Regulation (EU, Euratom) No 1311/2013 laying down the multiannual financial framework for the years 2014-2020 https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2020:174:FIN

European Parliament: Legislative Observatory: Procedure File for Proposal on Multiannual financial framework for the years 2014-2020 https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?lang=en&reference=2020/0055(APP)

Council of the European Union: Press Release, 14/04/2020: Tackling COVID-19: Council adopts amended EU budget for 2020 https://www.consilium.europa.eu/en/press/press-releases/2020/04/14/tackling-covid-19-council-adopts-amended-eu-budget-for-2020/

European Commission: Press Release, 17/04/2020: Coronavirus: Commission welcomes Parliament's quick green light for proposed new resources to protect lives and livelihoods https://ec.europa.eu/commission/presscorner/detail/en/ip_20_685

European Parliament: Press Release, 17/04/2020: COVID-19: MEPs free up over €3 billion to support EU healthcare sector https://www.europarl.europa.eu/news/en/press-room/20200415IPR77110/

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