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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.

Matching priorities and resources in the EU budget: Climate action, migration and borders

03-05-2021

Over the past two decades, the European Union (EU) has been entrusted with a growing number of objectives and responsibilities. However, ensuring financing of related activities through the EU budget has often proven problematic, as this has long been capped at around 1 % of the Union's gross national income (GNI). During the preparation of the post-2020 EU multiannual financial framework (MFF), climate action, migration and border management were identified among the emerging priorities that required ...

Over the past two decades, the European Union (EU) has been entrusted with a growing number of objectives and responsibilities. However, ensuring financing of related activities through the EU budget has often proven problematic, as this has long been capped at around 1 % of the Union's gross national income (GNI). During the preparation of the post-2020 EU multiannual financial framework (MFF), climate action, migration and border management were identified among the emerging priorities that required increased joint action and funding. The agreement on EU finances for 2021 to 2027 provides for a significant relative increase in the financial resources devoted to these policy areas. In absolute figures, the reinforcements are stronger for climate action than for migration and borders. Underpinned by the European Green Deal strategy, climate action will receive the bulk of its resources through the incorporation of climate considerations and objectives across all relevant EU funding instruments (climate mainstreaming). Next Generation EU (NGEU), the temporary instrument to aid recovery from the coronavirus pandemic, will play a major role in the boost to climate-relevant resources. In total, these could amount to some €550 billion (in 2018 prices, corresponding to 30 % of total MFF and NGEU resources). For the first time, migration and border management have a dedicated heading, accounting for 2.1 % of MFF resources. Among other activities, additional allocations will contribute to the agreed reinforcement of the European Border and Coast Guard Agency. Opinion surveys show that respondents see climate change and migration among the main global challenges for the EU, but there are gaps between perceptions and expectations of the role of the EU budget in these two domains. The European Parliament, which is a strong advocate of a robust EU budget commensurate with the Union's responsibilities, managed to secure additional resources for instruments relevant to both groups of policies, as well as the enhancement of the climate mainstreaming methodology. The Parliament plays a key role in shaping and scrutinising how the funding allocated to the policy areas is implemented. Other measures to reinforce the EU budget's capacity to deliver in the areas of climate action, migration and borders seek to improve synergies between budgetary instruments.

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

14-04-2021

The Treaty of Lisbon makes explicit reference to pooling financial resources to support common policies on asylum, immigration and external borders. Given the increasing salience of the policy areas in recent years, the European Union (EU) has for the first time established a specific heading devoted to migration and border management in its new multiannual financial framework (MFF). Endowed with €22.7 billion (2018 prices) for the years 2021 to 2027, the heading finances the activities of specific ...

The Treaty of Lisbon makes explicit reference to pooling financial resources to support common policies on asylum, immigration and external borders. Given the increasing salience of the policy areas in recent years, the European Union (EU) has for the first time established a specific heading devoted to migration and border management in its new multiannual financial framework (MFF). Endowed with €22.7 billion (2018 prices) for the years 2021 to 2027, the heading finances the activities of specific EU decentralised agencies, such as the European Border and Coast Guard Agency (Frontex) and the European Asylum Support Office (EASO), as well as two funding instruments, likely to be named the Asylum, Migration and Integration Fund (AMIF) and Integrated Border Management Fund (IBMF). The regulations governing the two funds are being finalised by the co-legislators. When designing the proposals for them, the European Commission aimed to improve synergies with other EU funding instruments and increase capacity to react to evolving needs. Expenditure for these policy areas is still a minor share of the EU budget (2.1 %, excluding the resources from the Next Generation EU recovery instrument), but these allocations represent a significant increase in relative terms, as compared with the 2014-2020 period. The reinforcement seeks to address weaknesses of the previous MFF that the 2015-2016 refugee crisis exposed, obliging EU institutions to use the flexibility provisions of the framework extensively. However, the Commission had proposed larger increases that the European Council cut. In the MFF negotiations with the Council, the European Parliament managed to strengthen the 'border management' policy cluster, which will gradually bring the overall resources of the heading to €23.7 billion by 2027. This is an update of briefing published in January 2020.

InvestEU programme: The EU's new investment support scheme

30-03-2021

The InvestEU programme is a single investment support mechanism for the 2021-2027 period. It brings together various EU financial instruments for internal policies previously supported by different funds and programmes of the EU budget. On 26 March 2021, the InvestEU Regulation entered into force, with retroactive application from 1 January 2021. The EU guarantee, set at €26.2 billion, is expected to mobilise at least €372 billion of investment across the EU (in current prices). In addition, at Parliament's ...

The InvestEU programme is a single investment support mechanism for the 2021-2027 period. It brings together various EU financial instruments for internal policies previously supported by different funds and programmes of the EU budget. On 26 March 2021, the InvestEU Regulation entered into force, with retroactive application from 1 January 2021. The EU guarantee, set at €26.2 billion, is expected to mobilise at least €372 billion of investment across the EU (in current prices). In addition, at Parliament's insistence, European Investment Bank legacy portfolios will be consolidated with InvestEU, which could mobilise an extra €35-40 billion in investment. Under the national compartment, Member States are able to allocate amounts to InvestEU from funds under shared management and from the new Recovery and Resilience Facility. Composed of four policy windows (sustainable infrastructure; research, innovation and digitalisation; SMEs; and social investment and skills), InvestEU is designed to contribute to the green transition in various ways, including through investment targets and a horizontal Just Transition Scheme.

Die Umsetzung des Eigenmittelbeschlusses

22-03-2021

Auf der März-II-Plenartagung soll das Europäische Parlament über drei Verordnungen des Rates abstimmen, mit denen die Struktur des Einnahmensystems des EU-Haushalts vervollständigt wird. Für die Durchführungsmaßnahmen gilt das Zustimmungsverfahren, während zu den operativen Bestimmungen legislative Stellungnahmen (Konsultationsverfahren) angenommen werden müssen. Vor den Abstimmungen wird das Parlament eine gemeinsame Aussprache über die umfassendere Reform der Eigenmittel der EU führen, für die ...

Auf der März-II-Plenartagung soll das Europäische Parlament über drei Verordnungen des Rates abstimmen, mit denen die Struktur des Einnahmensystems des EU-Haushalts vervollständigt wird. Für die Durchführungsmaßnahmen gilt das Zustimmungsverfahren, während zu den operativen Bestimmungen legislative Stellungnahmen (Konsultationsverfahren) angenommen werden müssen. Vor den Abstimmungen wird das Parlament eine gemeinsame Aussprache über die umfassendere Reform der Eigenmittel der EU führen, für die kürzlich in der Interinstitutionellen Vereinbarung über Haushaltsfragen zwischen Parlament, Rat und Kommission ein Fahrplan und Leitprinzipien festgelegt wurden.

EU climate action policy: Responding to the global emergency

18-03-2021

The European Green Deal aims to make the European Union climate-neutral by 2050, a target supported by all EU institutions. With this objective, the EU takes a leading role in addressing the global climate emergency. Achieving the climate-neutrality goal requires massive investment and an unprecedented transformation of all sectors of the economy. This study explains the physical basis of climate change and highlights its expected impacts on the EU. To give an overview of EU and international climate ...

The European Green Deal aims to make the European Union climate-neutral by 2050, a target supported by all EU institutions. With this objective, the EU takes a leading role in addressing the global climate emergency. Achieving the climate-neutrality goal requires massive investment and an unprecedented transformation of all sectors of the economy. This study explains the physical basis of climate change and highlights its expected impacts on the EU. To give an overview of EU and international climate policies, it outlines international climate agreements, EU climate action and the climate policies of major economies. It assesses the coherence of EU climate policy with other policy areas, and presents the financing of EU climate action through the EU budget and other instruments. To assess the implications of the climate neutrality objective, the study analysis the challenges and opportunities for the EU economy and its impacts on issues such as international relations, migration, trade, consumers and health . The final chapter addresses the issues facing European decision-makers and the outlook for European and global climate action in the context of the coronavirus pandemic.

Das Programm „InvestEU“

03-03-2021

Das Programm „InvestEU“ ist ein zentraler Unterstützungsmechanismus für den Zeitraum 2021–2027, mit dem mehrere Finanzierungsinstrumente der EU für interne Politikbereiche, die zuvor durch verschiedene Fonds des EU-Haushalts gefördert wurden, gestrafft werden. Das Europäische Parlament soll im Rahmen seiner März-I-Plenartagung 2021 über die Einigung in erster Lesung in Bezug auf das Programm „InvestEU“ abstimmen.

Das Programm „InvestEU“ ist ein zentraler Unterstützungsmechanismus für den Zeitraum 2021–2027, mit dem mehrere Finanzierungsinstrumente der EU für interne Politikbereiche, die zuvor durch verschiedene Fonds des EU-Haushalts gefördert wurden, gestrafft werden. Das Europäische Parlament soll im Rahmen seiner März-I-Plenartagung 2021 über die Einigung in erster Lesung in Bezug auf das Programm „InvestEU“ abstimmen.

Das Handels- und Kooperationsabkommen zwischen der Europäischen Union und dem Vereinigten Königreich: Analytischer Überblick

02-02-2021

Mit dieser Veröffentlichung möchte der EPRS einen analytischen Überblick über das Handels- und Kooperationsabkommen (TCA) zwischen der Europäischen Union (EU) und dem Vereinigten Königreich (VK) bieten, das am 24. Dezember 2020 zwischen den beiden Vertragsparteien vereinbart und am 30. Dezember 2020 von ihnen unterzeichnet wurde und seit dem 1. Januar 2021 vorläufig angewandt wird. Derzeit wird das Abkommen vom Europäischen Parlament geprüft, das darüber abstimmen muss, ob es seine Zustimmung dafür ...

Mit dieser Veröffentlichung möchte der EPRS einen analytischen Überblick über das Handels- und Kooperationsabkommen (TCA) zwischen der Europäischen Union (EU) und dem Vereinigten Königreich (VK) bieten, das am 24. Dezember 2020 zwischen den beiden Vertragsparteien vereinbart und am 30. Dezember 2020 von ihnen unterzeichnet wurde und seit dem 1. Januar 2021 vorläufig angewandt wird. Derzeit wird das Abkommen vom Europäischen Parlament geprüft, das darüber abstimmen muss, ob es seine Zustimmung dafür erteilt, dass der Rat es im Namen der Union abschließt. In diesem Dokument werden die vom Abkommen erfassten Bereiche analysiert, einschließlich des institutionellen Rahmens und der Regelungen für die Streitbeilegung, des Warenhandels, der Dienstleistungen und Investitionen, des digitalen Handels, der Energie, der gleichen Wettbewerbsbedingungen, des Verkehrs, der Koordinierung der sozialen Sicherheit und Visa für Kurzaufenthalte, der Fischerei, der Zusammenarbeit im Bereich der Strafverfolgung und Justiz hinsichtlich Strafsachen und der Teilnahme an Unionsprogrammen. Für jeden Bereich werden die wichtigsten Bestimmungen des Abkommens dargelegt und in einen Zusammenhang gestellt. Außerdem wird ein Überblick über die von den beiden Vertragsparteien für die jeweiligen Bereiche veröffentlichten Verhandlungspositionen geboten.

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

29-01-2021

As of 1 January 2021, the new multiannual financial framework (MFF) that details the structure of EU finances up to 2027 started to apply, following publication of the MFF Regulation in the Official Journal. In the wake of the coronavirus pandemic, the lengthy negotiations in the Council and European Council gained momentum when they became intertwined with the debate on the Next Generation EU recovery instrument. The European Parliament, which gave its consent on 16 December 2020, managed to obtain ...

As of 1 January 2021, the new multiannual financial framework (MFF) that details the structure of EU finances up to 2027 started to apply, following publication of the MFF Regulation in the Official Journal. In the wake of the coronavirus pandemic, the lengthy negotiations in the Council and European Council gained momentum when they became intertwined with the debate on the Next Generation EU recovery instrument. The European Parliament, which gave its consent on 16 December 2020, managed to obtain various changes it had strongly advocated, such as additional resources for flagship programmes and increased flexibility.

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