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Single market, innovation and digital: Heading 1 of the 2021-2027 MFF

27-01-2020

The European Union's long-term budget, the multiannual financial framework (MFF), sets out the maximum annual amounts of spending for a seven-year period. It is structured around the EU's spending priorities, reflected in broad categories of expenditure or 'headings'. Heading 1 – Single market, innovation and digital – is one of the seven headings in the MFF proposed by the European Commission for the new 2021-2027 financial period. The heading covers spending in four policy areas: research and innovation ...

The European Union's long-term budget, the multiannual financial framework (MFF), sets out the maximum annual amounts of spending for a seven-year period. It is structured around the EU's spending priorities, reflected in broad categories of expenditure or 'headings'. Heading 1 – Single market, innovation and digital – is one of the seven headings in the MFF proposed by the European Commission for the new 2021-2027 financial period. The heading covers spending in four policy areas: research and innovation, European strategic investments, single market, and space. The Commission, with a view to matching the budget to the EU's political ambitions, is proposing an overall amount of €166.3 billion (in 2018 prices) for this heading, representing 14.7 % of the MFF proposal. However, the new Commission's six priorities for 2019-2024 could have a budgetary impact on this heading, in particular the support for investment in green technologies and a cleaner private and public transport, which are among the actions included in the European Green Deal, and efforts to enable Europe to make the most of the potential of the digital age. This briefing presents the structure and budget allocation of Heading 1 and compares it with the current MFF. It describes each policy cluster and compares the Commission's budgetary proposal with the European Parliament's negotiating position and the negotiating box presented by the Finnish Presidency in December 2019. It then explores some considerations that could contribute to the forthcoming budgetary negotiations on the 2021-2027 MFF.

The 2021-2027 Multiannual Financial Framework in figures

24-01-2020

The Multiannual Financial Framework (MFF) sets the maximum level of resources (‘ceiling’) for each major category (‘heading’) of EU spending for a period of seven years. In addition to a financial plan, it sets the EU’s long-term priorities. With the 2014-2020 MFF nearing its end, the EU is now in negotiations on the next long-term budget. In May 2018, the European Commission presented a package of legislative proposals for the 2021-2027 MFF. Equivalent to 1.11 % of EU-27 gross national income (GNI ...

The Multiannual Financial Framework (MFF) sets the maximum level of resources (‘ceiling’) for each major category (‘heading’) of EU spending for a period of seven years. In addition to a financial plan, it sets the EU’s long-term priorities. With the 2014-2020 MFF nearing its end, the EU is now in negotiations on the next long-term budget. In May 2018, the European Commission presented a package of legislative proposals for the 2021-2027 MFF. Equivalent to 1.11 % of EU-27 gross national income (GNI), it takes into account the initiatives to which the Member States committed in the Bratislava and Rome declarations, as well as the loss of a major contributor due to the United Kingdom’s withdrawal from the EU. The European Parliament considers the proposal insufficient, given all commitments and priorities, and estimates that the MFF ceiling should amount to 1.3 % of EU-27 GNI. The Member States’ views on both the size and other aspects of the future MFF diverge, and the Council has not yet agreed its position. EU leaders are expected to take the next important decisions on the matter during the first half of 2020. The resources proposed for the 2021-2027 MFF are distributed across seven headings, representing the EU’s long-term priorities. They include spending programmes and funds that are the basis for the implementation of the EU budget. Our infographic provides a breakdown of the proposals for each of the seven headings, as well as an indication of the changes from the current MFF (2014-2027) represented by both the Commission's proposal and Parliament's position on that proposal.

Financing the EU's administration: Heading 7 of the 2021-2027 MFF

24-01-2020

In May 2018, the European Commission published its proposal for the EU's long-term budget for 2021-2027, known as the multiannual financial framework (MFF). The proposed next MFF is structured in 7 headings, encompassing 17 policy clusters. The Commission has proposed a total budget of €1 134 583 million in current prices. The vast majority of these funds – over 93 % – is dedicated to a variety of EU programmes, and is invested primarily in Member States, as well as partially in partner countries ...

In May 2018, the European Commission published its proposal for the EU's long-term budget for 2021-2027, known as the multiannual financial framework (MFF). The proposed next MFF is structured in 7 headings, encompassing 17 policy clusters. The Commission has proposed a total budget of €1 134 583 million in current prices. The vast majority of these funds – over 93 % – is dedicated to a variety of EU programmes, and is invested primarily in Member States, as well as partially in partner countries as external spending. The remaining funds cover the administrative expenses of the EU, an underlying cost of all EU activities. In the current MFF for 2014-2020, Heading 5 covers administration, while in the proposed 2021-2027 MFF, administrative costs will be funded under Heading 7, entitled 'European public administration'. While in other policy areas there is more significant restructuring, the heading that covers EU administrative costs is comparable to that of the current MFF in size and structure. In its proposal for the future Heading 7, the Commission upholds its view that, to ensure the smooth functioning of the Union, the EU budget must finance its administration adequately, particularly in view of the fact that the EU civil service has undergone two successive and substantial reforms within a short time frame, in 2004 and 2014. The Commission proposal aims to ensure that the EU can rely on a highly qualified administrative service, which respects a geographical and gender balance. The proposal has been backed by the European Parliament. On the other hand, in its first draft 'negotiating box' including figures from December 2019, the Council proposed a 2.6 % cut to the allocations in the Commission proposal and Parliament's position.

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.

Migration and border management: Heading 4 of the 2021-2027 MFF

23-01-2020

The Treaty of Lisbon makes explicit reference to pooling financial resources to support common policies on asylum, immigration and external borders. While expenditure for these policy areas still represents a minor share of the EU budget, it has recently increased in the wake of the 2015-2016 refugee crisis. Since the resources available under the 2014-2020 multiannual financial framework (MFF) of the EU proved insufficient to address the crisis, EU institutions had to use the flexibility provisions ...

The Treaty of Lisbon makes explicit reference to pooling financial resources to support common policies on asylum, immigration and external borders. While expenditure for these policy areas still represents a minor share of the EU budget, it has recently increased in the wake of the 2015-2016 refugee crisis. Since the resources available under the 2014-2020 multiannual financial framework (MFF) of the EU proved insufficient to address the crisis, EU institutions had to use the flexibility provisions of the MFF extensively. Given the increasing salience of the policy areas, the European Commission has proposed the establishment of a specific heading devoted to migration and border management worth €30.8 billion (2018 prices) in the 2021-2027 MFF. As compared with the current period, these allocations would represent a significant increase in relative terms, especially as regards border management. The heading would finance two funding instruments, the Asylum and Migration Fund (AMF) and the Integrated Border Management Fund (IBMF), as well as the activities of relevant EU decentralised agencies, such as the European Border and Coast Guard Agency and the European Asylum Support Office. By designing these new funds, the European Commission seeks to improve synergies with other EU funding instruments and increase capacity to react to evolving needs. Negotiations for the MFF package are very complex, involving different legislative procedures for the adoption of the overall MFF and the sector-specific instruments. The European Parliament, the Council and the European Council are working on the proposals, which have also triggered reactions from other stakeholders, including academics, think-tanks and commentators.

How flexible is the EU budget? Flexibility instruments and mechanisms in the multiannual financial framework (MFF)

23-01-2020

The 1988 introduction of multiannual financial frameworks (MFF) in the European Union (EU) budgetary system has improved financial predictability and facilitated the development of multiannual spending programmes, but has had to be balanced by measures that provided some flexibility and ability to react to unexpected situations. Over the years, these flexibility instruments and mechanisms have developed and proved to be useful. Occasions to use them were frequent, as the crises and challenges faced ...

The 1988 introduction of multiannual financial frameworks (MFF) in the European Union (EU) budgetary system has improved financial predictability and facilitated the development of multiannual spending programmes, but has had to be balanced by measures that provided some flexibility and ability to react to unexpected situations. Over the years, these flexibility instruments and mechanisms have developed and proved to be useful. Occasions to use them were frequent, as the crises and challenges faced by the EU required actions that could not be financed under the tight expenditure ceilings of the agreed MFFs. Experience of implementation of the 2014-2020 MFF demonstrated that, with neither relevant flexibility mechanisms nor the possibility to revise the MFF in the mid-term, achieving policy goals and reacting adequately to unexpected events and crises, especially in the area of migration and security, would be impossible. The flexibility of the EU budgets has already featured as an important issue in the negotiations of the 2021 2027 MFF. The views of the main actors – the European Commission, the Parliament and the Council – on enhancing and designing such flexibility instruments diverge. It has yet to be seen if the issue, following the pattern of the 2014-2020 MFF negotiations, will play a key role in reaching an agreement.

EU Own Resources

15-01-2020

This Briefing is a background note for the Committee on Budgets public hearing on “EU Own Resources and Fiscal Policy Harmonisation: Untapped potential for Synergies?” held on 23 January 2020. It describes the very specific structure of the EU revenue which come from three types of own resources, i) traditional own resources, ii) VAT-based own resource and iii) GNI-based own resource. State of play of what has been done to improve own resource is provided. Lastly, fiscal policy harmonisation initiatives ...

This Briefing is a background note for the Committee on Budgets public hearing on “EU Own Resources and Fiscal Policy Harmonisation: Untapped potential for Synergies?” held on 23 January 2020. It describes the very specific structure of the EU revenue which come from three types of own resources, i) traditional own resources, ii) VAT-based own resource and iii) GNI-based own resource. State of play of what has been done to improve own resource is provided. Lastly, fiscal policy harmonisation initiatives in force and proposed are listed.

Policy Departments' Monthly Highlights - January 2020

13-01-2020

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.

Ten issues to watch in 2020

06-01-2020

This is the fourth edition of an annual EPRS publication designed to identify and frame some of the key issues and policy areas that are likely to feature prominently on the political agenda of the European Union over the coming year. The topics analysed are biodiversity, EU policies for children, the 5G era, the price for energy transition, 'gamification' of EU democracy, finding solutions for asylum policy, the EU's long-term budget, climate action, the US elections, and the Arctic.

This is the fourth edition of an annual EPRS publication designed to identify and frame some of the key issues and policy areas that are likely to feature prominently on the political agenda of the European Union over the coming year. The topics analysed are biodiversity, EU policies for children, the 5G era, the price for energy transition, 'gamification' of EU democracy, finding solutions for asylum policy, the EU's long-term budget, climate action, the US elections, and the Arctic.

Policy Departments' Monthly Highlights - December 2019

16-12-2019

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.

Prihajajoči dogodki

28-01-2020
Western Balkans: A rocky road to enlargement
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29-01-2020
Where all students can succeed: Analysing the latest OECD PISA results
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EPRS
29-01-2020
The Future of Artificial Intelligence for Europe
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STOA

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