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Amended proposal for the 2021-2027 MFF and 2021-2024 recovery instrument 'Next Generation EU' in figures

07-07-2020

This briefing provides a graphic presentation of the next long-term budget and recovery instrument (Next Generation EU) proposed by the European Commission on 27 May 2020 (COM 2020). By comparing it with the Commission's initial proposal of May 2018 (COM 2018) and the European Parliament's negotiating position, we highlight the changes for the future financing of EU priorities. The preparation of the EU's next Multiannual Financial Framework (MFF) started formally in May 2018 with the proposal from ...

This briefing provides a graphic presentation of the next long-term budget and recovery instrument (Next Generation EU) proposed by the European Commission on 27 May 2020 (COM 2020). By comparing it with the Commission's initial proposal of May 2018 (COM 2018) and the European Parliament's negotiating position, we highlight the changes for the future financing of EU priorities. The preparation of the EU's next Multiannual Financial Framework (MFF) started formally in May 2018 with the proposal from the European Commission, more than two years ago. The European Parliament adopted its detailed negotiating position on 14 November 2018. The European Council, however, held its first substantial debate on the proposals only on 20 February 2020, failing to find agreement. The coronavirus pandemic has complicated the situation further. Given the new circumstances, on 27 May 2020 the Commission put forward an amended proposal for the 2021-2027 MFF and, linked to it, a recovery instrument, entitled Next Generation EU (NGEU) for the years 2021-2024.

The EU's public health strategy post-Covid-19

07-07-2020

The coronavirus pandemic has put European health systems under enormous strain, revealing gaps in the way public health emergencies are addressed. The European Commission's proposal for a new EU Health programme, EU4Health, aims to fill these gaps. During the European Parliament's July plenary session, the Commission and the Council are to make statements on the EU's public health strategy after coronavirus, followed by a debate with Members. A resolution is due to be voted later in the week.

The coronavirus pandemic has put European health systems under enormous strain, revealing gaps in the way public health emergencies are addressed. The European Commission's proposal for a new EU Health programme, EU4Health, aims to fill these gaps. During the European Parliament's July plenary session, the Commission and the Council are to make statements on the EU's public health strategy after coronavirus, followed by a debate with Members. A resolution is due to be voted later in the week.

EU-Iran: The way forward - Can the JCPOA survive the Trump presidency?

07-07-2020

Two issues have dominated relations between the EU and Iran in recent years: the nuclear agreement known as the Joint Comprehensive Plan of Action (JCPOA) – including efforts to conclude it, followed by efforts to save it – and human rights concerns. Even though the European Union (EU) and Iran have worked together over the past two years to save the JCPOA, relations between the two have deteriorated. Iran accuses EU Member States of not standing up to pressure from the United States of America ( ...

Two issues have dominated relations between the EU and Iran in recent years: the nuclear agreement known as the Joint Comprehensive Plan of Action (JCPOA) – including efforts to conclude it, followed by efforts to save it – and human rights concerns. Even though the European Union (EU) and Iran have worked together over the past two years to save the JCPOA, relations between the two have deteriorated. Iran accuses EU Member States of not standing up to pressure from the United States of America (USA) to isolate Iran and of not doing enough to save the JCPOA. The EU, for its part, is concerned about Iran's enrichment activities; growing tensions in the region and Iran's role in this context, including the provision of military, financial and political support to non-state actors in countries such as Iraq, Lebanon, Syria and Yemen; and its ballistic missile programme. In 2011, the EU put restrictive measures in place to react to serious human rights violations in Iran. These remain in force. Nevertheless, the EU has continued to engage with Iran, in marked contrast to the USA. Following the US withdrawal from the JCPOA in May 2018, the Trump administration re-imposed wide-ranging sanctions on Iran and has since then pursued a policy of 'maximum pressure'. The declared goal of the maximum pressure campaign is to push Iran to negotiate a new agreement that would also address Iran's ballistic missile programme, end its support of militant groups in the region, and curb its foreign policy ambitions in western Asia. Instead, the US policy of maximum pressure on Tehran has led to an escalation of tensions in the Persian Gulf region, with potentially direct consequences for Europe. With Iran continuing uranium enrichment to levels far exceeding the levels permitted under the JCPOA, and with the USA threatening to trigger the re-imposition of United Nations (UN) sanctions against Iran, further escalation is likely. Security in the EU is linked to the security situation in western Asia. For that reason, Europe should maintain efforts to preserve the JCPOA and seek to reduce tension between Iran and the USA.

States of emergency in response to the coronavirus crisis: Situation in certain Member States IV

07-07-2020

With the virulence of the coronavirus pandemic gradually diminishing, and in the light of the restrictive measures adopted by Member States, attention remains on the way chosen by the various states to respond to the crisis. With states at various stages of relaxing emergency constraints, the effects of the coronavirus pandemic are likely to last in terms of health, economic, social, psychological and possibly even political impact. Although public attention is now turned towards the widely differing ...

With the virulence of the coronavirus pandemic gradually diminishing, and in the light of the restrictive measures adopted by Member States, attention remains on the way chosen by the various states to respond to the crisis. With states at various stages of relaxing emergency constraints, the effects of the coronavirus pandemic are likely to last in terms of health, economic, social, psychological and possibly even political impact. Although public attention is now turned towards the widely differing measures that states are taking in order to live with the virus, new challenges are emerging as international and domestic traffic, trade and free movement of people are re-established, having been all but frozen. In this context, it is still necessary to complete the overview of Member States' constitutional frameworks in response to the coronavirus pandemic with the hope that this might offer some guidance or insight, should a comparable crisis arise in the future. This is the last in a series of four briefings and completes the comparative overview of Member States' institutional responses to the coronavirus crisis by analysing the legislation of Cyprus, Czechia, Greece, Ireland, Lithuania and Slovakia. The first in the series gave an overview of the responses in Belgium, France, Germany, Hungary, Italy, Poland and Spain, the second covered Austria, Bulgaria, Estonia, Latvia, Malta, Romania and Slovenia, while the third covered Croatia, Denmark, Finland, Luxembourg, the Netherlands, Portugal and Sweden.

The EU budget and coronavirus [What Think Tanks are thinking]

06-07-2020

European Union leaders and institutions are now discussing plans to provide a major boost to the European economy to help it recover from the coronavirus crisis. They are doing so in the context of the new long-term EU budget, which would see the total ‘own resources’ ceiling for the Union more or less doubled. On 19 June 2020, the members of the European Council exchanged views by video-conference on the European Commission’s linked proposals, tabled on 27 May, for (i) a new ‘Next Generation EU’ ...

European Union leaders and institutions are now discussing plans to provide a major boost to the European economy to help it recover from the coronavirus crisis. They are doing so in the context of the new long-term EU budget, which would see the total ‘own resources’ ceiling for the Union more or less doubled. On 19 June 2020, the members of the European Council exchanged views by video-conference on the European Commission’s linked proposals, tabled on 27 May, for (i) a new ‘Next Generation EU’ recovery fund, and (ii) an updated Multiannual Financial Framework (MFF) for the next seven-year financing period, from 2021 to 2027, in which the recovery fund would be embedded. The European Council will discuss these proposals again (in person) on 17-18 July in Brussels. In this context, think tankers and policy analysts have been debating the proposals and assessing their potential effectiveness. This note offers links to recent commentaries and reports from international think tanks on coronavirus and related issues. Earlier publications on financing the fight against the coronavirus can be found in a previous item in this series, published by EPRS on 8 June.

The role of cohesion policy in tackling the socio-economic fallout from coronavirus

06-07-2020

The Committee on Regional Development has tabled a question to the European Commission on the role of cohesion policy in tackling the socio-economic fallout from Covid-19. The Commission is due to respond during a debate at Parliament's July plenary session.

The Committee on Regional Development has tabled a question to the European Commission on the role of cohesion policy in tackling the socio-economic fallout from Covid-19. The Commission is due to respond during a debate at Parliament's July plenary session.

Next Generation EU: A European instrument to counter the impact of the coronavirus pandemic

06-07-2020

The socio-economic impact of the coronavirus pandemic across the European Union (EU) is posing significant challenges, not least to the good functioning of the single market and the euro area. This has led to a growing consensus on the need for a common recovery plan to complement national stimulus packages. The European Commission has put forward a proposal to establish a €750 billion European recovery instrument, Next Generation EU, to reinforce the EU's 2021-2027 multiannual financial framework ...

The socio-economic impact of the coronavirus pandemic across the European Union (EU) is posing significant challenges, not least to the good functioning of the single market and the euro area. This has led to a growing consensus on the need for a common recovery plan to complement national stimulus packages. The European Commission has put forward a proposal to establish a €750 billion European recovery instrument, Next Generation EU, to reinforce the EU's 2021-2027 multiannual financial framework (MFF). The instrument would be financed from funds borrowed on the markets by the Commission on behalf of the EU, while a mix of new and already planned instruments under the EU budget would channel expenditure, combining grants (€500 billion) and loans (€250 billion). The proposal, which aims to focus on the geographical areas and sectors hardest hit by the crisis, seeks to ensure an economic rebound that is also about quality, since expenditure is to be in line with jointly agreed EU objectives such as the green and digital transitions. National allocations under the largest instrument, a new Recovery and Resilience Facility, are to address challenges identified in the context of the European Semester. The recovery instrument includes various proposals in which the European Parliament is involved to varying extents, depending on the issue at stake. The channelling of resources through the EU budget means that Parliament would be co-legislator of relevant spending instruments, and exercise democratic scrutiny of expenditure through the discharge procedure. The budgetary authority would not however determine annual expenditure of Next Generation EU in the budgetary procedure since financing would be based on external assigned revenue. The Commission has called for an agreement to be reached in July 2020, in order for the recovery instrument to be operational as of 2021. A €11.5 billion bridging solution would address some objectives already in 2020. Elements expected to be at the heart of the complex negotiations, which are linked to those on the 2021-2027 MFF, are: the size of the instrument; the mix of grants and loans; the allocation of resources between Member States; reform of the financing system of the EU budget with new own resources; and the repayment of the borrowed resources.

European economic recovery

03-07-2020

A more united Europe has the potential to deliver greater benefits for its citizens, more effectively and efficiently, by offering a level of strategic scale and depth that no individual Member State, or even group of Member States, can achieve on their own. In particular, the combination of Europe's single market and economic and monetary union, used to their full potential and complemented by progress in other policy areas, such as the Green Deal, could prove to be key assets for a strong European ...

A more united Europe has the potential to deliver greater benefits for its citizens, more effectively and efficiently, by offering a level of strategic scale and depth that no individual Member State, or even group of Member States, can achieve on their own. In particular, the combination of Europe's single market and economic and monetary union, used to their full potential and complemented by progress in other policy areas, such as the Green Deal, could prove to be key assets for a strong European recovery from the serious economic shock recently administered by the coronavirus pandemic. An intensive debate has therefore opened up about the potential benefits of moving towards a higher degree of risk-sharing and collective 'strategic autonomy' for the Union, based on stronger and deeper common policies at EU level. The recent European Commission proposal for a 'Next Generation EU' recovery plan is likely to prove an important staging-point in this process. In practice, the size of the recovery response, the policy areas chosen for deepening, the financing options available to support them, and the degree to which they are matched by a greater willingness of the Union to 'act as one' on the international stage, are all likely to be determining factors in the outcome. This paper analyses some of the issues arising specifically in the economic field in the aftermath of the coronavirus crisis and looks at a range of policy initiatives that could help build a broadly based and sustainable European economic recovery and a more resilient European Union.

Policy Departments' Monthly Highlights - July 2020

03-07-2020

The Monthly Highlights publication provides an overview, at a glance, of the on-going work of the policy departments, including a selection of the latest and forthcoming publications, and a list of future events.

The Monthly Highlights publication provides an overview, at a glance, of the on-going work of the policy departments, including a selection of the latest and forthcoming publications, and a list of future events.

Just Transition Fund

03-07-2020

The EU aims to cut greenhouse gas emissions by 50-55 % by 2030, and achieve climate neutrality by 2050. This will require a socio-economic transformation in regions relying on fossil fuels and carbon intensive industries. As part of the European Green Deal, on 14 January 2020, the European Commission adopted a proposal for a regulation to create the Just Transition Fund, aimed at supporting EU regions most affected by the transition to a low carbon economy. In the context of recovery from the coronavirus ...

The EU aims to cut greenhouse gas emissions by 50-55 % by 2030, and achieve climate neutrality by 2050. This will require a socio-economic transformation in regions relying on fossil fuels and carbon intensive industries. As part of the European Green Deal, on 14 January 2020, the European Commission adopted a proposal for a regulation to create the Just Transition Fund, aimed at supporting EU regions most affected by the transition to a low carbon economy. In the context of recovery from the coronavirus pandemic, an amended proposal on the Just Transition Fund (JTF) was published on 28 May 2020, increasingly the previously proposed JTF budget from €7.5 to €40 billion (in 2018 prices, with €10 billion under the core EU budget and €30 billion from Next Generation EU). Funding will be available to all Member States, while focusing on regions with the biggest transition challenges. The proposed budget for the Just Transition Fund is to be complemented with resources from cohesion policy funds and national co financing. The Fund will be part of a Just Transition Mechanism, which also includes resources under InvestEU and a public-sector loan facility. Total funding mobilised under the mechanism is expected to reach at least €150 billion. In the European Parliament, the file has been entrusted to the Committee on Regional Development (REGI). The rapporteur's draft report was published on 23 March and presented on 12 May. The REGI committee is due to vote on the report on 6 July, with a view to fixing Parliament's position for trilogue negotiations.