The European Parliament,

–   having regard to the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management(1),

–   having regard to the Treaty on the Functioning of the European Union and in particular Article 312 thereof,

–   having regard to its resolution of 8 June 2011 on Investing in the Future: a new Multiannual Financial Framework (MFF) for a competitive, sustainable and inclusive Europe,

–   having regard to the Commission proposal from 29 June 2011 - A Budget for Europe 2020, Parts I and II,

–   having regard to Rule 110(2) of its Rules of Procedure,

A. whereas pursuant article 312(2) TFEU, the Council shall adopt a regulation laying down the MFF, acting by unanimity, after obtaining the consent of the European Parliament;

B.  whereas the Danish Presidency-in-office is aiming to submit to the June European Council a so-called negotiating box proposing options for all aspects of the negotiation including the revenue side but excluding at this stage any figures;

C. whereas in its resolution of 8 June 2011, it established its political priorities for the next MFF, both in legislative terms and budgetary terms, providing a sound basis for negotiations on the next MFF(2);

D. whereas the multiannual programmes related to the next MFF will be adopted by the European Parliament and the Council according to the ordinary legislative procedure;

E.  whereas it has repeatedly called for the creation of new and genuine own resources;

1.  Notes that the EU budget does not fulfil its intended purpose as an investment budget with a strong leverage effect; under 45% of the budgeted spend falls under heading one, sustainable growth, with the remainder being earmarked for other purposes which have little to do with strategic investment in Europe;

2.  Notes that the EU 2020 strategy has been set as a substantial objective to support sustainable growth, competitiveness and employment in Europe and was approved by the 27 Member States, but the failure of the Lisbon strategy on which it is based does not lend any credibility for the EU 2020 strategy;

3.  Recalls the adoption of the report of the specialised SURE committee in its resolution of 8 June 2011;

4.  Recognises the need for the EU budget to present an appropriate balance between revenues and expenditures; notes that the increased revenues of genuine own resources should reduce national contributions; notes the legislative proposals made by the Commission on 29 June 2011 on the reform of the system of own resources; rejects the proposals for a Financial Transaction Tax (FTT) and a new EU VAT own resource; regrets that the burden of the FTT will fall disproportionately and unjustly on some member states, which will not derive any of the benefits of it;

5.  In view of the current macro-economic environment and the challenges of the changing world feels that allowing the MFF 2014-2020 a more enhanced budgetary flexibility both within and across headings, as well as between financial years within the MFF shows poor budgeting;

6.  Insists on the principle of unity of the EU budget, stressing that all EU policies and programs should be included within the MFF with the appropriate financing, thus contributing to its transparency, predictability and accountability;

7.  While it considers that the goals and policies of the MFF should be agreed, before assigning figures to them and stresses that Parliament and Council should have fully fledged negotiations on all MFF related aspects, prior to assigning figures and making the final adjustment of the entire MFF package; is of the opinion that sticking to the principle of ‘nothing is agreed until everything is agreed’ is unrealistic;

8.  Instructs its President to forward this resolution to the European Council, the Council, the Commission, the national parliaments and governments of the Member States as well as the other institutions and bodies concerned.

(1) OJ C 139, 14.6.2006, p. 1. (2) P7_TA(2011)0266