The Commission adopted yesterday the proposal of Multiannual Financial Framework (MFF) of the EU for the period 2021 – 2027. The new MFF foresees a total expenditure for the seven years of €1.135 billion, equivalent to 1.11% of the EU27's gross national income (GNI)  (general fact sheet). The proposal of the Commission concentrates resources on a limited number of priorities for which the impact of the Union's action in terms of benefits for citizens is stronger. The sectors with a greatest European added value, that will thus receive more funding in the next years, are: security and defense, migration flows and border managementclimate change, youth mobility and research&innovation.

 

 

To deal with the new political priorities and the decrease in the available resources due to the Brexit, the Commission proposes the rationalization and reduction of expenditure in two main chapters of the budget: funds allocated to the Common Agricultural Policy should decrease by 5% compared to the current MFF, while for Cohesion Policy the reduction is of the order of 7%

 

 

The Commission defines the budget proposal adopted yesterday innovative in the structure and in the prioritization of policies and balanced in the mix of new revenue (in particular own resources), savings and rationalization of expenditure. The Commission considers the new budget modern (thanks to the prevision of a reduction in red tape, more clarity regarding the objectives, a result-orientation and the definition of more coherent rules), simple (thanks to the merging of new funding programmes that from 58 currently will become 37 in the future and rationalization in the use of innovative financial instruments) and flexible (thanks to the greater flexibility inside the programmes and between the programmes themselves, the strengthening of crises management instruments and the creation of a new "Union Reserve" to tackle unforeseen events and emergencies).

 

 

With regard to the revenues, the Commission foresees to obtain the necessary resources to enable investments in the new political priorities from new revenues (80%) and from savings and rationalizations. The Commission proposes a simplification of the current Value Added Tax (VAT) based Own Resource and the introduction of a basket of new Own Resources (20% of the revenues from the Emissions Trading System, a 3% call rate applied to the new Common Consolidated Corporate Tax Base and a national contribution calculated on the amount of non-recycled plastic packaging waste in each Member State). In addition, the Commission foresees the gradual elimination of all the current rebates and rebates on the contribution of the Member State to the EU budget and the reduction from 20% to 10% of the amount that the Member States keep when collecting customs revenues for the EU budget.


In the next weeks the Commission will present proposals for the future sector-specific financial programmes. The decision on the future long-term EU budget will then fall to the Council, acting by unanimity, with the consent of the European Parliament.


The Commission considers it essentials to give the utmost priority to the approval procedure of the MFF in order to ensure that all the programmes will be operational by the beginning of the new programming period. For this reason, the Commission hopes that an agreement can be reached before the European Parliament elections and the summit in Sibiu on 9 May 2019.

 

 

Communication of the Commission about the Multiannual Financial Framework 2021- 2027

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