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Economic Dialogues and Exchanges of Views with the Member States under the European Semester Cycles - State-of-Play

22-07-2021

This table provides a regular update on Member States invited for an Economic Dialogue in the competent Committee of the European Parliament and an overview of the respective legal base.

This table provides a regular update on Member States invited for an Economic Dialogue in the competent Committee of the European Parliament and an overview of the respective legal base.

Own resources of the European Union: Reforming the EU's financing system

09-06-2021

On 1 June 2021, the decision that reforms the financing system of the EU budget entered into force, following its ratification by all Member States. It introduces three significant innovations in the own resources system, applying retroactively from 1 January 2021. The maximum level of resources that can be called from Member States permanently rises from 1.20 % to 1.40 % of EU gross national income (GNI). A temporary increase in the own resources ceiling, worth a further 0.60 % of EU GNI, is devoted ...

On 1 June 2021, the decision that reforms the financing system of the EU budget entered into force, following its ratification by all Member States. It introduces three significant innovations in the own resources system, applying retroactively from 1 January 2021. The maximum level of resources that can be called from Member States permanently rises from 1.20 % to 1.40 % of EU gross national income (GNI). A temporary increase in the own resources ceiling, worth a further 0.60 % of EU GNI, is devoted exclusively to the financing of Next Generation (NGEU), enabling the Commission to borrow resources on an unprecedented scale on the capital markets, with a view to financing the recovery. A national contribution linked to non-recycled plastic packaging waste is introduced, the first new EU own resource to be created since 1988. In addition, Parliament pushed for a broader reform of the financing system underlining that the introduction of a basket of new own resources should cover at least the repayment costs of NGEU (for both principal and interest). Parliament managed to include a detailed roadmap for the introduction of various additional new own resources by 2026 in the interinstitutional agreement on budgetary matters with the Council and the European Commission. Envisaged resources are linked to EU policies on climate and the single market. Fourth edition. The 'EU Legislation in Progress' briefings are updated at key stages throughout the legislative procedure.

National ratification of the Own Resources Decision: Procedure completed on 31 May 2021

02-06-2021

The Own Resources Decision (ORD) establishes how the EU budget is financed. Its entry into force requires approval by all EU Member States according to their constitutional requirements. In a majority of Member States, national parliaments are responsible for ratifying the decision. In the others, the government alone decides on the approval. Completion of the ratification procedure by all Member States has generally required more than two years. However, there was a greater sense of urgency for ...

The Own Resources Decision (ORD) establishes how the EU budget is financed. Its entry into force requires approval by all EU Member States according to their constitutional requirements. In a majority of Member States, national parliaments are responsible for ratifying the decision. In the others, the government alone decides on the approval. Completion of the ratification procedure by all Member States has generally required more than two years. However, there was a greater sense of urgency for the ORD adopted by the Council in December 2020, since its entry into force is a pre-condition for the launch of the Next Generation EU (NGEU) recovery instrument. The objective was to complete the ratification procedure before summer 2021, with a view to ensuring the timely launch of NGEU. All Member States have now ratified the ORD, and notified the Council accordingly before the end of May. Therefore, on 1 June 2021, the new ORD entered into force, enabling the Commission to start borrowing resources for the recovery instrument. This is a further update of a Briefing of which the previous edition was published on 20 May 2021.

Cohesion, resilience and values: Heading 2 of the 2021-2027 MFF

14-04-2021

Heading 2 – Cohesion, resilience and values – is the biggest of the seven headings in the multiannual financial framework (MFF) for the 2021-2027 period in terms of budget. Since about 87 % of the heading falls under shared management and will be distributed to national envelopes, for the Member States it is a particularly important part of the MFF. It is also the most diverse heading in terms of the types of programme and fund included. It encompasses expenditure on cohesion, one of the EU's long-standing ...

Heading 2 – Cohesion, resilience and values – is the biggest of the seven headings in the multiannual financial framework (MFF) for the 2021-2027 period in terms of budget. Since about 87 % of the heading falls under shared management and will be distributed to national envelopes, for the Member States it is a particularly important part of the MFF. It is also the most diverse heading in terms of the types of programme and fund included. It encompasses expenditure on cohesion, one of the EU's long-standing policies, on an entirely new budgetary instrument supporting economic recovery and resilience, and on other increasingly important goals, including youth, the creative sector, values, equality and the rule of law. Moreover, the bulk of the Next Generation EU instrument will be channelled through programmes under Heading 2. This briefing presents Heading 2 in detail. It aims to provide some clarity on its structure and allocation, and is structured around three spending areas: cohesion; recovery; and citizens and values. In the 2021-2027 MFF, the allocation on economic, social and territorial cohesion (subheading 2a) – the budget for cohesion policy – is about 10 % lower than its equivalent, subheading 1b, in the 2014-2020 MFF. Additional resources from REACT-EU, a temporary instrument financed under the Next Generation EU instrument (NGEU), will lift the cohesion policy budget to a level comparable with the allocation under the previous MFF. This is an update of a briefing from January 2019.

The role of the European Council in negotiating the 2021-27 MFF

09-04-2021

To assess the role of the European Council in the process of the adoption of the multiannual financial framework and its evolution over time, this paper provides a comparative analysis of the similarities and differences between the European Council's involvement in the 2014‑2020 and 2021‑2027 MFF negotiations. An additional content analysis of EU leaders' Twitter communication on the MFF focuses in particular on key moments in the European Council's decision-making process.  The 2021‑2027 MFF negotiations ...

To assess the role of the European Council in the process of the adoption of the multiannual financial framework and its evolution over time, this paper provides a comparative analysis of the similarities and differences between the European Council's involvement in the 2014‑2020 and 2021‑2027 MFF negotiations. An additional content analysis of EU leaders' Twitter communication on the MFF focuses in particular on key moments in the European Council's decision-making process.  The 2021‑2027 MFF negotiations provide yet another example of the ways in which EU leaders not only intervene in the parts of the policy cycle envisaged for the European Council in the Treaties, but extend the scope of their involvement and influence, to areas where this is expressly prohibited by the Treaties, such as regarding legislation. The European Council's involvement in legislative matters against the letter of the Treaties can be considered both as 'déjà vu' and as a further evolution of its involvement.

European Parliament involvement in scrutinising the Recovery and Resilience Facility

02-03-2021

This note provides a brief overview of Parliament involvement in scrutinising the Recovery and Resilience Facility (and the European Union Recovery Instrument). It is based on Regulation 2021/241 of 21 February, setting out the Recovery and Resilience Facility, and the relevant parts of the new Interinstitutional Agreement on budgetary matters established between the Parliament, the Council and the Commission. It does not cover nor discusses in detail other instruments or frameworks for scrutiny, ...

This note provides a brief overview of Parliament involvement in scrutinising the Recovery and Resilience Facility (and the European Union Recovery Instrument). It is based on Regulation 2021/241 of 21 February, setting out the Recovery and Resilience Facility, and the relevant parts of the new Interinstitutional Agreement on budgetary matters established between the Parliament, the Council and the Commission. It does not cover nor discusses in detail other instruments or frameworks for scrutiny, namely those relating to the European Semester, EU budgetary procedures, written or oral questions or any discharge procedures.

Reform of the EU own resources

01-03-2021

This document was prepared by Policy Department for Budgetary Affairs for the Committee on Budgets as a background paper for the Public Hearing on ‘Financing the EU budget: new own resources and possible other revenue’. It provides a summary of the system of EU own resources in the light of the agreement on its revision reached during the negotiations of the 2021-27 MFF. It shows the rationale for the reform including the need to find sources to finance the repayment of the EU borrowing in the framework ...

This document was prepared by Policy Department for Budgetary Affairs for the Committee on Budgets as a background paper for the Public Hearing on ‘Financing the EU budget: new own resources and possible other revenue’. It provides a summary of the system of EU own resources in the light of the agreement on its revision reached during the negotiations of the 2021-27 MFF. It shows the rationale for the reform including the need to find sources to finance the repayment of the EU borrowing in the framework of the New Generation EU initiative. The paper gives a description of each new own resource listed in the Interinstitutional Agreement of 2020, and shows their probable policy and budgetary effects.

EU financing for 2021-2027: The 2021-2027 Multiannual Financial Framework (MFF), the Next Generation EU (NGEU) recovery instrument and new own resources

21-12-2020

This briefing provides a graphic presentation of the long-term EU budget adopted on 17 December 2020, enabling the EU to finance the extraordinary needs in the aftermath of the Covid-19 pandemic. It highlights the improvements that the European Parliament achieved in particular.

This briefing provides a graphic presentation of the long-term EU budget adopted on 17 December 2020, enabling the EU to finance the extraordinary needs in the aftermath of the Covid-19 pandemic. It highlights the improvements that the European Parliament achieved in particular.

Adoption of the European Union's 2021 Budget

17-12-2020

During the December plenary session, the European Parliament is due to adopt the European Union's general budget for the year 2021. In practice, Parliament will vote on the Council's position on the second draft EU general budget for 2021. The Council adopted the second draft budget as presented by the European Commission on 10 December, without any amendment. This second draft budget is the fruit of the agreement found on 4 December during the budgetary conciliation between Parliament and the Council ...

During the December plenary session, the European Parliament is due to adopt the European Union's general budget for the year 2021. In practice, Parliament will vote on the Council's position on the second draft EU general budget for 2021. The Council adopted the second draft budget as presented by the European Commission on 10 December, without any amendment. This second draft budget is the fruit of the agreement found on 4 December during the budgetary conciliation between Parliament and the Council on the first draft budget for 2021. Commitment appropriations for 2021 will amount to €164.2 billion and payments to €166.1 billion. The annual budgetary negotiations this year were delayed and complex due to the lack of agreement on the multiannual financial framework (MFF) for 2021-2027, as well as the context of the coronavirus crisis.

Economic Dialogue with the European Commission on the 2021 European Semester Cycle

03-12-2020

Vice-President Dombrovskis and Commissioners Schmit and Gentiloni have been invited to an Economic Dialogue to discuss the 2021 European Semester Cycle, in line with the relevant EU law. This briefing note covers the main elements of the 2021 European Semester Package proposed by the Commission. It gives an overview of the implementation of the previous Semester Cycles and of the on-going work to strengthen the governance and the resilience of Economic and Monetary Union.

Vice-President Dombrovskis and Commissioners Schmit and Gentiloni have been invited to an Economic Dialogue to discuss the 2021 European Semester Cycle, in line with the relevant EU law. This briefing note covers the main elements of the 2021 European Semester Package proposed by the Commission. It gives an overview of the implementation of the previous Semester Cycles and of the on-going work to strengthen the governance and the resilience of Economic and Monetary Union.

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