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Annual EU budgetary procedure: An introduction to the steps in the EP

19-07-2019

The European Parliament (EP) and the Council are the budgetary authority of the European Union. The two institutions, assisted by the European Commission, decide on the budget in the annual EU budgetary procedure. The annual EU budget funds EU policies and programmes following the Union's political priorities and legal obligations. The financial year starts on 1 January and ends on 31 December. The European Parliament amends the Council position through the work of its Committee on Budgets (BUDG) ...

The European Parliament (EP) and the Council are the budgetary authority of the European Union. The two institutions, assisted by the European Commission, decide on the budget in the annual EU budgetary procedure. The annual EU budget funds EU policies and programmes following the Union's political priorities and legal obligations. The financial year starts on 1 January and ends on 31 December. The European Parliament amends the Council position through the work of its Committee on Budgets (BUDG) and the specialised parliamentary committees. The EP then adopts the Parliament's reading in plenary session. This briefing presents possible scenarios set in the EU Treaties for adoption or non-adoption of the annual budget. It explains differences between the Treaty calendar and the 'pragmatic calendar'. The key actors in establishing the Parliament's position are: the Committee on Budgets and EP specialised committees, in particular the BUDG chair, the annual budget rapporteurs and their shadows, BUDG coordinators and budget rapporteurs in specialised committees. An amendment to the Council's position is a tool enabling Members of the European Parliament to modify the annual budget draft. This briefing sketches the life cycle of such an amendment. The European Parliament and the Council work out an agreement on the annual budget through negotiations consisting of trilogue meetings and conciliation. Last but not least, this briefing explains what happens if there is no agreement on the EU annual budget.

Own resources of the European Union: Reforming the EU's financing system

09-11-2018

The EU budget is financed by the system of own resources and cannot run a deficit. The current system provides sufficient revenue to cover EU expenditure, but has often been criticised as opaque and unfair. The European Parliament, which has little say in the design of the system, has long pushed for its reform, with a view to shifting the focus of budgetary negotiations from geographically pre-allocated expenditure to the policies with the highest European added value. The European Commission is ...

The EU budget is financed by the system of own resources and cannot run a deficit. The current system provides sufficient revenue to cover EU expenditure, but has often been criticised as opaque and unfair. The European Parliament, which has little say in the design of the system, has long pushed for its reform, with a view to shifting the focus of budgetary negotiations from geographically pre-allocated expenditure to the policies with the highest European added value. The European Commission is proposing to modify the financing of the EU budget as of 2021, when the next multiannual financial framework should start. Proposed changes include: the simplification of existing own resources; the introduction of three new own resources linked to EU policies on climate, environment and the single market; the reduction of the share of revenue provided by the GNI-based resource, which is perceived as national contributions; the abolition of the UK rebate (following that country’s withdrawal from the EU); and the phasing-out of corrections currently granted to other five Member States. A special legislative procedure applies to the principal decision, requiring unanimity in the Council. This is considered a major obstacle to reform of the system, which has remained substantially unchanged for 30 years. First edition. The 'EU Legislation in Progress' briefings are updated at key stages throughout the legislative procedure.

2021-2027 multiannual financial framework and new own resources: Analysis of the Commission's proposal

26-07-2018

The process of negotiating a new seven-year financial plan for the EU has now begun formally with the Commission's publication of proposals for a 2021-2027 Multiannual Financial Framework (MFF), and for a new system of own resources providing the revenue to pay for it. This analysis presents the proposed new MFF and own resources and compares them to the status quo, as well as to the European Parliament's priorities as expressed in plenary resolutions adopted in spring 2018.

The process of negotiating a new seven-year financial plan for the EU has now begun formally with the Commission's publication of proposals for a 2021-2027 Multiannual Financial Framework (MFF), and for a new system of own resources providing the revenue to pay for it. This analysis presents the proposed new MFF and own resources and compares them to the status quo, as well as to the European Parliament's priorities as expressed in plenary resolutions adopted in spring 2018.

Post-2020 MFF and own resources: Ahead of the Commission's proposal

27-04-2018

On 2 May, the Commission is expected to publish proposals for a new multiannual financial framework (MFF) for the European Union for the years after 2020, as well as for a new system of own resources (OR) to provide the EU with the means to finance its annual budgets. The following day the proposals are to be presented to the Parliament's Committee on Budgets (BUDG).The proposals are being published as a package, and will be followed by a series of further legislative proposals for individual spending ...

On 2 May, the Commission is expected to publish proposals for a new multiannual financial framework (MFF) for the European Union for the years after 2020, as well as for a new system of own resources (OR) to provide the EU with the means to finance its annual budgets. The following day the proposals are to be presented to the Parliament's Committee on Budgets (BUDG).The proposals are being published as a package, and will be followed by a series of further legislative proposals for individual spending programmes to appear later in May and in June. The next MFF and OR system will set the EU's priorities and determine much of its scope for action for a period of at least five years. The proposals are an opportunity for the Commission to respond to a set of longstanding issues concerning how the EU finances its priorities, and to new issues arising from a political landscape that has changed profoundly since 2013, when the EU last negotiated its multiannual budget plan. Chief among these are the twin pressures affecting both the revenue and spending sides of the budget: the loss of a major net contributor country in the departure from the EU of the United Kingdom; and growing pressure to respond to new challenges mainly linked to the refugee and migration crisis that erupted after the current MFF was put in place, as well as ongoing issues resulting from the financial and sovereign debt crises. The Commission's proposals for a new MFF and OR will also respond to the question of how big the EU budget should be. Currently subject to a political cap of 1 % of the EU's GNI, the EU budget is modest in comparison with the government budgets of the EU's Member States. Nevertheless, negotiations over whether to increase this cap will be politically fraught in a context where some Member States are under pressure to reduce national budget deficits. Other issues at stake in the negotiations are the flexibility, conditionalities, structure and duration of the next MFF, and the sensitive question of whether to increase the EU's financial autonomy by endowing it with new and significant own resources.

Performance budgeting: A means to improve EU spending

16-03-2018

In 2015, the European Commission launched an initiative entitled 'The EU budget focused on results'. It is aimed at changing spending culture and making results a horizontal priority for the EU budget. The initiative is based on a popular contemporary budgeting method known as 'performance budgeting'. This paper presents the method and its application to the EU budget. It explains why, although not easy to implement, performance budgeting is seen as an attractive way to increase value for money and ...

In 2015, the European Commission launched an initiative entitled 'The EU budget focused on results'. It is aimed at changing spending culture and making results a horizontal priority for the EU budget. The initiative is based on a popular contemporary budgeting method known as 'performance budgeting'. This paper presents the method and its application to the EU budget. It explains why, although not easy to implement, performance budgeting is seen as an attractive way to increase value for money and enhance the transparency and democratic accountability of public finances. The paper also analyses how the performance budgeting approach has evolved within the EU budgetary system and what challenges and obstacles to its implementation remain. The commitment of the European Commission to the principles of performance budgeting, as well as the broad support for the idea expressed by the European Parliament and the Council, give grounds to believe that these efforts will continue in the post-2020 Multiannual Financial Framework.

Reform of the EU's system of own resources

06-03-2018

In May 2018, the European Commission is expected to present a legislative package on what are known as 'own resources' – the sources of revenue for the EU budget – for the period after 2020, alongside proposals on a new Multiannual Financial Framework (MFF). The European Parliament has long pointed to shortcomings in the current system of own resources, and in anticipation of the Commission's proposals, the Committee on Budgets has drafted an own-initiative report on the Parliament's priorities. ...

In May 2018, the European Commission is expected to present a legislative package on what are known as 'own resources' – the sources of revenue for the EU budget – for the period after 2020, alongside proposals on a new Multiannual Financial Framework (MFF). The European Parliament has long pointed to shortcomings in the current system of own resources, and in anticipation of the Commission's proposals, the Committee on Budgets has drafted an own-initiative report on the Parliament's priorities. That report is on the agenda of the March plenary session.

Post-2020 Multiannual Financial Framework

06-03-2018

In May 2018, the European Commission is expected to adopt a proposal on a new Multiannual Financial Framework (MFF) for the period after 2020, alongside proposals on the reform of the 'own resources' system. Parliament's Committee on Budgets (BUDG) has adopted an own-initiative report on its position on the future MFF, together with one on reform of 'own resources'. Due to be debated during the March plenary session, the two texts will set out Parliament’s perspective on both the revenue and expenditure ...

In May 2018, the European Commission is expected to adopt a proposal on a new Multiannual Financial Framework (MFF) for the period after 2020, alongside proposals on the reform of the 'own resources' system. Parliament's Committee on Budgets (BUDG) has adopted an own-initiative report on its position on the future MFF, together with one on reform of 'own resources'. Due to be debated during the March plenary session, the two texts will set out Parliament’s perspective on both the revenue and expenditure sides of the EU budget, which it argues should be treated as a single package in the upcoming negotiations.

The European Council and the Multiannual Financial Framework

21-02-2018

With the entry into force of the Treaty of Lisbon, the MFF was for the first time given a legal basis in the EU Treaties and a new procedure was introduced for its adoption. The MFF is now laid down in a regulation adopted by the Council, acting in accordance with a special legislative procedure, once European Parliament consent is obtained. The post-2020 MFF process will represent the second full application of this new procedure, following the negotiations on the MFF for 2014-2020. The Treaty of ...

With the entry into force of the Treaty of Lisbon, the MFF was for the first time given a legal basis in the EU Treaties and a new procedure was introduced for its adoption. The MFF is now laid down in a regulation adopted by the Council, acting in accordance with a special legislative procedure, once European Parliament consent is obtained. The post-2020 MFF process will represent the second full application of this new procedure, following the negotiations on the MFF for 2014-2020. The Treaty of Lisbon also established the European Council as one of the seven institutions of the European Union and defined its role and powers. In accordance with Article 15(1) TEU, the European Council 'shall provide the Union with the necessary impetus for its development and shall define the general political directions and priorities thereof'. Moreover, the European Council 'shall not exercise legislative functions'. Notwithstanding this prohibition on the exercise of legislative functions, and despite the lack of a formal role assigned to it in the financial provisions of the Treaties (Articles 310 to 324 TFEU), the European Council – as was already the case prior to the Lisbon Treaty – played a central role in the 2014-2020 MFF negotiation. Acting on the basis of its competence to 'define the general political directions and priorities', the European Council adopted detailed conclusions on the MFF, which purported to define the MFF ceilings and the financial envelopes for all policy sectors for the seven-year MFF period. In its resolution of 15 April 2014 on the lessons to be learned from the 2014-2020 negotiations, the European Parliament identified the impact of the European Council's involvement in the Parliament's legislative prerogatives as a matter of particular concern. The aspects most often considered when assessing the MFF and its negotiation process are the overall size of the budget, own resources, national bargaining positions, and the tensions between net beneficiary and net contributor countries. To date, only limited attention has been paid to the role of the European Council. This Briefing analyses the European Council's involvement in the process of adopting the 2014-2020 MFF during the different negotiation phases and outlines the concerns expressed by the Parliament in this respect. It also provides an indicative timeline and potential milestones for the post-2020 MFF negotiations and looks at the possible role of the European Council in this process, thereby attempting an initial assessment of possible similarities with and differences to the 2014-2020 MFF negotiations.

Conciliation agreement on the 2018 EU budget

24-11-2017

On 18 November, European Parliament and Council negotiators reached a provisional agreement on the 2018 EU budget. The joint text, which provides for total commitments of €160.11 billion and total payments of €144.68 billion, is expected to be adopted by the Council and then voted on by the Parliament during the November II plenary session.

On 18 November, European Parliament and Council negotiators reached a provisional agreement on the 2018 EU budget. The joint text, which provides for total commitments of €160.11 billion and total payments of €144.68 billion, is expected to be adopted by the Council and then voted on by the Parliament during the November II plenary session.

Research for AGRI Committee - Implications of ‘Brexit’ for the EU agri-food sector and the CAP: budgetary, trade and institutional issues

15-11-2017

This is the reference document of the Workshop on ‘The Implications of ‘Brexit’ for the EU agricultural sector and the CAP’ of 9th November 2017, organised by COMAGRI and the Policy Department B. The purpose of this Workshop was to examine and debate the main budgetary, trade and institutional issues related to the Brexit process at the current state of negotiations. This document is structured in three parts: 1. Possible impact of Brexit on the EU budget and, in particular, CAP funding. 2. EU ...

This is the reference document of the Workshop on ‘The Implications of ‘Brexit’ for the EU agricultural sector and the CAP’ of 9th November 2017, organised by COMAGRI and the Policy Department B. The purpose of this Workshop was to examine and debate the main budgetary, trade and institutional issues related to the Brexit process at the current state of negotiations. This document is structured in three parts: 1. Possible impact of Brexit on the EU budget and, in particular, CAP funding. 2. EU - UK agricultural trade: state of play and possible impacts of Brexit. 3. Possible transitional arrangements related to agriculture in the light of the future EU - UK relationship: institutional issues.

Външен автор

Jörg Haas, Eulalia Rubio, Alan MATTHEWS, Cecilia BELLORA, Charlotte EMLINGER, Jean FOURÉ, Houssein GUIMBARD

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