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Parliament's guidelines for the 2021 EU budget: Section III – European Commission

11-06-2020

The 2021 EU budget should be the first one under the new Multiannual Financial Framework (MFF) for 2021 to 2027. The European Parliament contributes to the preparation of proposals for the forthcoming year's budget for the European Union through the adoption of its 'guidelines'. The draft guidelines, as adopted by the Committee on Budgets, outline the Parliament's priorities for the Union's 2021 budget: mitigating the effects of the Covid 19 outbreak and supporting the recovery, built on the European ...

The 2021 EU budget should be the first one under the new Multiannual Financial Framework (MFF) for 2021 to 2027. The European Parliament contributes to the preparation of proposals for the forthcoming year's budget for the European Union through the adoption of its 'guidelines'. The draft guidelines, as adopted by the Committee on Budgets, outline the Parliament's priorities for the Union's 2021 budget: mitigating the effects of the Covid 19 outbreak and supporting the recovery, built on the European Green Deal and digital transformation. Parliament is expected to adopt its guidelines during the June plenary session, ahead of the Commission's adoption of its proposal for the draft 2021 budget, scheduled for 24 June 2020.

Amending budget No 3/2020: 2019 surplus

11-06-2020

Draft Amending Budget No 3/2020 (DAB 3/2020) to the general budget 2020 enters the surplus resulting from implementation of the 2019 budget as revenue into the EU's 2020 budget. The 2019 surplus totals over €3.2 billion (as compared to €1.8 billion in 2018 and €0.56 billion in 2017). It consists mostly of higher than expected revenues, and underspending on the expenditure side. Inclusion of the surplus will reduce the gross national income contributions of Member States (including the United Kingdom ...

Draft Amending Budget No 3/2020 (DAB 3/2020) to the general budget 2020 enters the surplus resulting from implementation of the 2019 budget as revenue into the EU's 2020 budget. The 2019 surplus totals over €3.2 billion (as compared to €1.8 billion in 2018 and €0.56 billion in 2017). It consists mostly of higher than expected revenues, and underspending on the expenditure side. Inclusion of the surplus will reduce the gross national income contributions of Member States (including the United Kingdom) to the 2020 EU budget accordingly. The European Parliament is expected to vote on the Council position on DAB 3/2020 during its June plenary session.

Mobilisation of the European Globalisation Adjustment Fund – Technical assistance

11-06-2020

The European Commission has proposed to mobilise €345 000 for technical assistance to the European Globalisation Adjustment Fund (EGF). The European Parliament’s Committee on Budgets backs this proposal, underlining that the EGF can be used to support permanently dismissed workers and the self-employed in the context of the global crisis caused by the Covid-19 pandemic. Parliament is expected to vote on this proposal during the June plenary session.

The European Commission has proposed to mobilise €345 000 for technical assistance to the European Globalisation Adjustment Fund (EGF). The European Parliament’s Committee on Budgets backs this proposal, underlining that the EGF can be used to support permanently dismissed workers and the self-employed in the context of the global crisis caused by the Covid-19 pandemic. Parliament is expected to vote on this proposal during the June plenary session.

Three critical issues in EU-UK relations

08-06-2020

Following the withdrawal of the United Kingdom (UK) from the European Union (EU) on 1 February 2020, the EU and the UK launched negotiations on a new partnership agreement, to come into effect at the end of the transition period, scheduled for 31 December 2020. The negotiations are intended to address nearly all the domains covered in the Political Declaration negotiated by both parties alongside the Withdrawal Agreement, including trade and economics, fisheries, thematic cooperation, and internal ...

Following the withdrawal of the United Kingdom (UK) from the European Union (EU) on 1 February 2020, the EU and the UK launched negotiations on a new partnership agreement, to come into effect at the end of the transition period, scheduled for 31 December 2020. The negotiations are intended to address nearly all the domains covered in the Political Declaration negotiated by both parties alongside the Withdrawal Agreement, including trade and economics, fisheries, thematic cooperation, and internal and external security. As far as negotiations on the future economic relationship are concerned, while the parties agree in principle on an exceptional zero-tariff and zero-quota comprehensive and balanced free trade agreement (FTA) aiming for as 'frictionless' trade as possible, they still disagree on major aspects of the economic partnership, especially fisheries and level playing-field (LPF) commitments. The EU wants the future agreement in the fisheries domain to retain the status quo as far as possible, including reciprocal access to waters in return for access to markets and quota-shares that are based on historical fishing patterns. The EU also insists that an effective LPF would ensure fair competition. After the third round of talks, which took place in May 2020, the UK's chief negotiator, David Frost, said that the EU proposal on fisheries was ‘simply not realistic’, and it was unacceptable that the LPF binds the UK to EU law or standards; if need be, the UK would aim for a less ambitious FTA. The EU's chief negotiator, Michel Barnier, said that negotiating an FTA providing for tariffs would be far more time-consuming, and the EU would still demand the same LPF commitments because 'open and fair competition is not a "nice-to-have", it is a "must-have" '. Following the fourth round of negotiations, from 2 to 5 June, the positions therefore still seemed irreconcilable. However, the long stand-off in the earlier negotiations on UK withdrawal had seemed equally irreconcilable before the final agreement was reached and then ratified. One area in which the two sides did manage to agree in those negotiations is the financial settlement included in the Withdrawal Agreement. While that settlement is now being implemented, it had initially been seen as one of the more difficult areas of the withdrawal negotiations.

Financing EU security and defence: Heading 5 of the 2021-2027 MFF

23-01-2020

For the new 2021-2027 multiannual financial framework (MFF), the European Commission proposes to dedicate a separate heading to security and defence – Heading 5. Although the European Union (EU) has already financed action linked to security and defence, this is the first time that this policy area has been so visibly underlined in the EU budget structure. With an allocation of €24 323 million (in 2018 prices), Heading 5 is the smallest of the seven MFF headings and represents 2.1 % of the total ...

For the new 2021-2027 multiannual financial framework (MFF), the European Commission proposes to dedicate a separate heading to security and defence – Heading 5. Although the European Union (EU) has already financed action linked to security and defence, this is the first time that this policy area has been so visibly underlined in the EU budget structure. With an allocation of €24 323 million (in 2018 prices), Heading 5 is the smallest of the seven MFF headings and represents 2.1 % of the total MFF. Heading 5 'Security and Defence' under the new MFF consists of three 'policy clusters': security, (policy cluster number 12), defence (13) and crisis response (14). The programmes and funds proposed for Heading 5 consist of old and new initiatives. They include the continuation of the current Internal Security Fund – Police instrument, funding for nuclear decommissioning and the Union Civil Protection Mechanism (rescEU). The European Defence Fund and the military mobility programme, which is a part of the Connecting Europe Facility, are new. The European Parliament position is supportive of the Commission proposal, with the exception of the allocation for nuclear decommissioning, which the Parliaments sees as insufficient. Even though the Council has not yet expressed its position on the 2021-2027 MFF, the Finnish EU Presidency contributed to the debate with its 'negotiation box' that proposed severe cuts to Heading 5, down to €16 491 million. The European Parliament reaction to this reduction is negative.

Conciliation agreement on the 2020 EU budget

22-11-2019

On the final day of the 21-day conciliation period – 18 November 2019 – European Parliament and Council negotiators reached a provisional agreement on the 2020 European Union budget. The 2020 budget is the final annual exercise under the multiannual financial framework (MFF) for 2014-2020. The joint text provides for total commitments of €168.69 billion (1.5 % increase as compared to 2019) and total payments of €153.57 billion (+3.4 % over 2019). The Council intends to adopt the agreed text on 25 ...

On the final day of the 21-day conciliation period – 18 November 2019 – European Parliament and Council negotiators reached a provisional agreement on the 2020 European Union budget. The 2020 budget is the final annual exercise under the multiannual financial framework (MFF) for 2014-2020. The joint text provides for total commitments of €168.69 billion (1.5 % increase as compared to 2019) and total payments of €153.57 billion (+3.4 % over 2019). The Council intends to adopt the agreed text on 25 November, and Parliament will then vote on approving the text during the November II plenary session in Strasbourg.

Parliament's reading of the 2020 EU budget

17-10-2019

During the October II plenary session, the European Parliament is due to decide on amendments to the Council's position on the draft EU budget for 2020. The report of the Committee on Budgets reverses the cuts proposed by the Council, with the exception of funds for Turkey. Furthermore, it proposes a considerable increase in the contributions of the 2020 budget to the fight against climate change, and increases appropriations for a number of Parliament's other priorities, to make 2020 a bridge to ...

During the October II plenary session, the European Parliament is due to decide on amendments to the Council's position on the draft EU budget for 2020. The report of the Committee on Budgets reverses the cuts proposed by the Council, with the exception of funds for Turkey. Furthermore, it proposes a considerable increase in the contributions of the 2020 budget to the fight against climate change, and increases appropriations for a number of Parliament's other priorities, to make 2020 a bridge to future EU policies and to provide European added value.

Amending budget No 1/2019: 2018 surplus

13-09-2019

Draft Amending Budget No 1/2019 (DAB1/2019) enters the surplus resulting from implementation of the 2018 budget into the EU's 2019 budget. The 2018 surplus totals over €1.8 billion, as compared to €0.56 billion in 2017. It consists mostly of higher than expected revenues and underspending on the expenditure side. Inclusion of the surplus will reduce the Member States' contributions to the 2019 EU budget accordingly. The European Parliament is expected to vote on the Council position on DAB1/2019 ...

Draft Amending Budget No 1/2019 (DAB1/2019) enters the surplus resulting from implementation of the 2018 budget into the EU's 2019 budget. The 2018 surplus totals over €1.8 billion, as compared to €0.56 billion in 2017. It consists mostly of higher than expected revenues and underspending on the expenditure side. Inclusion of the surplus will reduce the Member States' contributions to the 2019 EU budget accordingly. The European Parliament is expected to vote on the Council position on DAB1/2019 during its September 2019 plenary session.

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.

Pilot projects and preparatory actions in the annual EU budgetary procedure

19-07-2019

Pilot projects and preparatory actions (PP/PAs) are tools introduced in the European Union (EU) budget that aim at testing new policy initiatives and/or preparing the ground for the adoption of future measures. Such PP/PAs give Members of the European Parliament the possibility to initiate innovative policies and fund them in advance of a legal basis being set. Both new PP/PAs and those continued from previous years must be included in the EU budget through the annual budgetary procedure.

Pilot projects and preparatory actions (PP/PAs) are tools introduced in the European Union (EU) budget that aim at testing new policy initiatives and/or preparing the ground for the adoption of future measures. Such PP/PAs give Members of the European Parliament the possibility to initiate innovative policies and fund them in advance of a legal basis being set. Both new PP/PAs and those continued from previous years must be included in the EU budget through the annual budgetary procedure.

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