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EU policies – Delivering for citizens: Future financing of EU policies

28-06-2019

The principle of subsidiarity means that the European Union (EU) should act where it can do so more effectively than its constituent Member States individually, and this also holds true in the area of public finance – the EU's budget together with off-budget tools for financing EU policies. At €165.8 billion in 2019 – or approximately 1 % of Member States' collective gross national income (GNI) – the EU budget is a great deal smaller in relative terms than EU national governments' budgets. It serves ...

The principle of subsidiarity means that the European Union (EU) should act where it can do so more effectively than its constituent Member States individually, and this also holds true in the area of public finance – the EU's budget together with off-budget tools for financing EU policies. At €165.8 billion in 2019 – or approximately 1 % of Member States' collective gross national income (GNI) – the EU budget is a great deal smaller in relative terms than EU national governments' budgets. It serves mainly as a vehicle for investment, particularly in the areas of rural and regional development, industrial research and support for small and medium-sized enterprises (SMEs), and political and economic development in neighbouring countries. These policies are designed to yield European public goods, with benefits that go beyond the national borders of individual EU countries. The Commission calculates that they do so for less than the cost of one cup of coffee a day per citizen. During the 2014-2019 parliamentary term, the EU was buffeted by challenges to its capacity to act, including financially, by geopolitical instability in the wider region, the migration and refugee crisis, and unresolved questions about the future of the euro, linked to the legacy of the economic, financial and sovereign debt crises. However, the EU also saw several notable achievements. These include the update to the financial rules governing the use of EU funds, simplifying the rules and strengthening the focus on performance and results; the creation of a European Public Prosecutor's Office to help address the roughly 0.35 % of the EU budget at risk of fraud; a mid-term revision of the multiannual financial framework (MFF), enhancing its flexibility to provide for a more responsive EU; the development of proposals for new sources of revenue in time for negotiations on the post-2020 MFF; and policy innovation in the field of financial engineering, helping EU finance go further by leveraging private investment. The 2019 elections mark a turning point in the future financing of EU policies, since the new Parliament will be responsible for concluding negotiations on the next multiannual spending plan. The Commission has proposed a 2021-2027 MFF totalling 1.11 % of the post-Brexit EU-27's GNI, and new sources of EU revenue to reduce the burden on national treasuries and forge a clearer link between revenue and policies. It also proposes to consolidate progress made in the last term with regard to budgetary flexibility, financial integrity and the rule of law, and in encouraging private investment in Europe. This is an update of an earlier briefing issued prior to the 2019 European elections.

Multiannual financial framework for the years 2021 to 2027: The future of EU finances

28-06-2019

On 20 June 2019, the European Council examined the progress of work in the Council on the Commission proposal for the long-term design of the post-2020 EU budget. The European Council now aims to reach an agreement among Heads of State or Government before the end of 2019. Elements for consideration in the draft regulation, which is part of a broader package of proposals, include the following features of the new multiannual financial framework (MFF): total resources, structure, priorities, flexibility ...

On 20 June 2019, the European Council examined the progress of work in the Council on the Commission proposal for the long-term design of the post-2020 EU budget. The European Council now aims to reach an agreement among Heads of State or Government before the end of 2019. Elements for consideration in the draft regulation, which is part of a broader package of proposals, include the following features of the new multiannual financial framework (MFF): total resources, structure, priorities, flexibility provisions, and revision clauses. The European Parliament has already detailed its negotiating position in November 2018, with a view to contributing to a smooth transition to the next MFF and its related EU spending programmes as of 2021.

Outlook for the European Council and Euro Summit meetings, 20-21 June 2019

19-06-2019

The June 2019 European Council will discuss, and potentially agree on, high-level appointments to EU institutions and adopt the 2019-2024 strategic agenda. Other agenda topics are the next Multiannual Financial Framework (MFF), the EU’s common climate ambition, disinformation, enlargement and foreign policy issues, including relations with Russia. EU-27 leaders will meet for a Euro Summit in extended format to discuss the report submitted by the Eurogroup on EMU reforms.

The June 2019 European Council will discuss, and potentially agree on, high-level appointments to EU institutions and adopt the 2019-2024 strategic agenda. Other agenda topics are the next Multiannual Financial Framework (MFF), the EU’s common climate ambition, disinformation, enlargement and foreign policy issues, including relations with Russia. EU-27 leaders will meet for a Euro Summit in extended format to discuss the report submitted by the Eurogroup on EMU reforms.

Summary of the exchange of views on EU Member States National Declarations (ND) - Committee on Budgetary Control Meeting on 11 April 2019

14-06-2019

Committee on Budgetary Control (CONT) held an exchange of views with Mr Olivier Waelbroeck, Director, European Commission, and Ms Eva Lindström, Member of the European Court of Auditors, in which they explored ways to promote the National Declarations (ND). ND are a voluntary public accountability instrument that strengthen the provision of assurance in the management of EU funds, and demonstrate the political commitment towards sound financial management.

Committee on Budgetary Control (CONT) held an exchange of views with Mr Olivier Waelbroeck, Director, European Commission, and Ms Eva Lindström, Member of the European Court of Auditors, in which they explored ways to promote the National Declarations (ND). ND are a voluntary public accountability instrument that strengthen the provision of assurance in the management of EU funds, and demonstrate the political commitment towards sound financial management.

European Maritime and Fisheries Fund 2021-2027

22-05-2019

The European Commission has proposed a new regulation on the European Maritime and Fisheries Fund (EMFF) as part of the next EU budget framework for the 2021-2027 period. The European Parliament established its first-reading position on the proposal on 4 April 2019. The new fund will continue to support the EU common fisheries policy and the Union's maritime policy. The proposal aims to simplify the delivery of the fund compared to the very complex legal framework in use for the current EMFF. It ...

The European Commission has proposed a new regulation on the European Maritime and Fisheries Fund (EMFF) as part of the next EU budget framework for the 2021-2027 period. The European Parliament established its first-reading position on the proposal on 4 April 2019. The new fund will continue to support the EU common fisheries policy and the Union's maritime policy. The proposal aims to simplify the delivery of the fund compared to the very complex legal framework in use for the current EMFF. It therefore presents a more flexible architecture: this would allow Member States to use the funds where they see the greatest need, instead of being bound to a list of pre-defined measures and eligibility rules. Small-scale coastal fisheries and outermost regions would receive greater preferential treatment. It further proposes increased support for international ocean governance and stronger synergies with other EU policies. The fund is also expected to contribute to the development of the blue economy and support the EU's climate objectives. Negotiations with the Council on the proposal are expected to start in the new term. Third edition. The 'EU Legislation in Progress' briefings are updated at key stages throughout the legislative procedure.

The European Public Prosecutor’s Office: Strategies For Coping With Complexity

15-05-2019

This study analyses challenges related to the establishment of the European Public Prosecutor’s Office (EPPO) as enhanced cooperation among the current 22 Member States and discusses possible solutions for coping with them. Complexity is identified as a main challenge owing to the EPPO’s specific multilevel structure, the relationship between the EPPO and non-participating Member States, and the fact that the EPPO Regulation leaves many procedural rules to the law of the Member State in which an ...

This study analyses challenges related to the establishment of the European Public Prosecutor’s Office (EPPO) as enhanced cooperation among the current 22 Member States and discusses possible solutions for coping with them. Complexity is identified as a main challenge owing to the EPPO’s specific multilevel structure, the relationship between the EPPO and non-participating Member States, and the fact that the EPPO Regulation leaves many procedural rules to the law of the Member State in which an investigation takes place. Depending on the nature of the challenge, the suggested strategies to cope with complexity encompass legislative, administrative, and monitoring measures.

Zunanji avtor

Hartmut Aden, Maria-Luisa Sanchez-Barrueco, Paul Stephenson

Policy Departments' Monthly Highlights - April 2019

15-04-2019

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.

Performance Indicators for Convergence in Regional Development - How reliable are they to ensure Targeted and Result-Oriented spending?

15-04-2019

This study examines how reliable Cohesion Policy indicators are in helping to ensure targeted and result-oriented expenditure. Overall, substantial progress has been made in recent years in developing an effective system. However, the challenge remains to shift from a focus on financial absorption and outputs to assessing more meaningful results and impacts of interventions, and to improve data collection systems. The paper includes eleven recommendations to address these and other challenges ahead ...

This study examines how reliable Cohesion Policy indicators are in helping to ensure targeted and result-oriented expenditure. Overall, substantial progress has been made in recent years in developing an effective system. However, the challenge remains to shift from a focus on financial absorption and outputs to assessing more meaningful results and impacts of interventions, and to improve data collection systems. The paper includes eleven recommendations to address these and other challenges ahead of the new 2020-2027 period.

Zunanji avtor

Jack Malan, Jayne Woolford, Sandra Ruiz-Fernandez, Michaela Brady, and Maria Kazakova from the Centre for Strategy & Evaluation Services LLP (CSES)

Effectiveness of cohesion policy: Learning from the project characteristics that produce the best results

15-04-2019

This study analyses the characteristics of cohesion policy projects that can contribute to successful outcomes. Our analysis is based on a literature survey, an econometric analysis and interviews with stakeholders. About two dozen project characteristics are considered, and their association with economic growth is studied using a novel methodology. Based on the findings, the study concludes with recommendations for cohesion policy reform.

This study analyses the characteristics of cohesion policy projects that can contribute to successful outcomes. Our analysis is based on a literature survey, an econometric analysis and interviews with stakeholders. About two dozen project characteristics are considered, and their association with economic growth is studied using a novel methodology. Based on the findings, the study concludes with recommendations for cohesion policy reform.

Zunanji avtor

Mr Zsolt Darvas, Senior Fellow, Bruegel and Corvinus University of Budapest Mr Antoine Mathieu Collin contributed to this report while working at Bruegel as a Research Assistant Mr Jan Mazza, Research Assistant, Bruegel Ms Catarina Midoes, Research Assistant, Bruegel

Mainstreaming Innovation Funding in the EU Budget

15-04-2019

This study provides a comprehensive assessment of how the EU budget supports innovation in the current programming period and analyses the approach to innovation financing in the Commission´s MFF 2021-2027 proposals. The findings provide the basis on which to draw recommendations to maximize the use of EU innovation funding in the coming MFF.

This study provides a comprehensive assessment of how the EU budget supports innovation in the current programming period and analyses the approach to innovation financing in the Commission´s MFF 2021-2027 proposals. The findings provide the basis on which to draw recommendations to maximize the use of EU innovation funding in the coming MFF.

Zunanji avtor

EDr. Eulalia Rubio, Jacques Delors Institute Dr Fabian Zuleeg, European Policy Centre Emilie Magdalinski, Jacques Delors Institute Thomas Pellerin-Carlin, Jacques Delors Institute Marta Pilati, European Policy Centre Philipp Ständer, Jacques Delors Institut -Berlin

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