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

12-02-2021

On 14 December 2020, the Council adopted the decision that reforms the financing system of the EU budget, in the context of a package including the new multiannual financial framework (MFF) and the Next Generation EU (NGEU) recovery instrument. The agreed increase in the maximum level of resources that can be called from Member States is a pre-condition for NGEU borrowing operations. Ratification by all Member States is now required before the decision can enter into force, with retroactive application ...

On 14 December 2020, the Council adopted the decision that reforms the financing system of the EU budget, in the context of a package including the new multiannual financial framework (MFF) and the Next Generation EU (NGEU) recovery instrument. The agreed increase in the maximum level of resources that can be called from Member States is a pre-condition for NGEU borrowing operations. Ratification by all Member States is now required before the decision can enter into force, with retroactive application from 1 January 2021. Six Member States have ratified the decision as of 12 February 2021. Parliament fast-tracked its legislative opinion, adopted in September 2020, to enable the Council to ensure the timely launch of NGEU. In the broader negotiations on EU finances, Parliament pushed for a proper 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). Deeming the new plastics contribution a first partial step in this direction, 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. Third edition. The 'EU Legislation in Progress' briefings are updated at key stages throughout the legislative procedure.

Benefits and drawbacks of an “expenditure rule”, as well as of a "golden rule", in the EU fiscal framework

01-09-2020

Focusing the EU fiscal framework on an expenditure rule could help to increase transparency, compliance and ownership. In various other respects, like estimation errors or counter-cyclicality of prescribed fiscal policy, an expenditure rule is similar to a structural balance rule. If the EU decides to go beyond the current focus on fiscal aggregates, a two-rule system aimed at safeguarding specific expenditures could be placed at the centre of the EU fiscal framework. The key challenge is to define ...

Focusing the EU fiscal framework on an expenditure rule could help to increase transparency, compliance and ownership. In various other respects, like estimation errors or counter-cyclicality of prescribed fiscal policy, an expenditure rule is similar to a structural balance rule. If the EU decides to go beyond the current focus on fiscal aggregates, a two-rule system aimed at safeguarding specific expenditures could be placed at the centre of the EU fiscal framework. The key challenge is to define and measure the protected expenditures.

Externe Autor

Wolf Heinrich REUTER

Parliament's reading of the 2020 EU budget

17-10-2019

During the October II plenary session, the European Parliament is due to decide on amendments to the Council's position on the draft EU budget for 2020. The report of the Committee on Budgets reverses the cuts proposed by the Council, with the exception of funds for Turkey. Furthermore, it proposes a considerable increase in the contributions of the 2020 budget to the fight against climate change, and increases appropriations for a number of Parliament's other priorities, to make 2020 a bridge to ...

During the October II plenary session, the European Parliament is due to decide on amendments to the Council's position on the draft EU budget for 2020. The report of the Committee on Budgets reverses the cuts proposed by the Council, with the exception of funds for Turkey. Furthermore, it proposes a considerable increase in the contributions of the 2020 budget to the fight against climate change, and increases appropriations for a number of Parliament's other priorities, to make 2020 a bridge to future EU policies and to provide European added value.

Pilot projects and preparatory actions in the annual EU budgetary procedure

19-07-2019

Pilot projects and preparatory actions (PP/PAs) are tools introduced in the European Union (EU) budget that aim at testing new policy initiatives and/or preparing the ground for the adoption of future measures. Such PP/PAs give Members of the European Parliament the possibility to initiate innovative policies and fund them in advance of a legal basis being set. Both new PP/PAs and those continued from previous years must be included in the EU budget through the annual budgetary procedure.

Pilot projects and preparatory actions (PP/PAs) are tools introduced in the European Union (EU) budget that aim at testing new policy initiatives and/or preparing the ground for the adoption of future measures. Such PP/PAs give Members of the European Parliament the possibility to initiate innovative policies and fund them in advance of a legal basis being set. Both new PP/PAs and those continued from previous years must be included in the EU budget through the annual budgetary procedure.

Annual EU budgetary procedure: An introduction to the steps in the EP

19-07-2019

The European Parliament (EP) and the Council are the budgetary authority of the European Union. The two institutions, assisted by the European Commission, decide on the budget in the annual EU budgetary procedure. The annual EU budget funds EU policies and programmes following the Union's political priorities and legal obligations. The financial year starts on 1 January and ends on 31 December. The European Parliament amends the Council position through the work of its Committee on Budgets (BUDG) ...

The European Parliament (EP) and the Council are the budgetary authority of the European Union. The two institutions, assisted by the European Commission, decide on the budget in the annual EU budgetary procedure. The annual EU budget funds EU policies and programmes following the Union's political priorities and legal obligations. The financial year starts on 1 January and ends on 31 December. The European Parliament amends the Council position through the work of its Committee on Budgets (BUDG) and the specialised parliamentary committees. The EP then adopts the Parliament's reading in plenary session. This briefing presents possible scenarios set in the EU Treaties for adoption or non-adoption of the annual budget. It explains differences between the Treaty calendar and the 'pragmatic calendar'. The key actors in establishing the Parliament's position are: the Committee on Budgets and EP specialised committees, in particular the BUDG chair, the annual budget rapporteurs and their shadows, BUDG coordinators and budget rapporteurs in specialised committees. An amendment to the Council's position is a tool enabling Members of the European Parliament to modify the annual budget draft. This briefing sketches the life cycle of such an amendment. The European Parliament and the Council work out an agreement on the annual budget through negotiations consisting of trilogue meetings and conciliation. Last but not least, this briefing explains what happens if there is no agreement on the EU annual budget.

Agreement on EU general budget for 2019

11-12-2018

After the failure of budgetary conciliation, the European Commission put forward a new draft budget for 2019. Based on the second draft budget and subsequent negotiations, the European Parliament and Council have agreed the General Budget for the European Union for 2019, at a level of €165 795.6 million in commitments and €148 198.9 million in payment appropriations. This means an increase of 3.2 % in commitments and 2.4 % in payments as compared to 2018 budget. The Parliament has scheduled the adoption ...

After the failure of budgetary conciliation, the European Commission put forward a new draft budget for 2019. Based on the second draft budget and subsequent negotiations, the European Parliament and Council have agreed the General Budget for the European Union for 2019, at a level of €165 795.6 million in commitments and €148 198.9 million in payment appropriations. This means an increase of 3.2 % in commitments and 2.4 % in payments as compared to 2018 budget. The Parliament has scheduled the adoption of the agreement for the December 2018 plenary. Adoption of this agreement means, once signed by the Parliament’s President, that the EU will be equipped with a budget as from 1 January 2019.

Mehrjähriger Finanzrahmen 2021–2027 und neue Eigenmittel: Analyse des Vorschlags der Kommission

26-07-2018

Das Verfahren zur Verhandlung eines neuen siebenjährigen Finanzplans für die EU wurde nun offiziell mit der Veröffentlichung der Vorschläge der Kommission für einen mehrjährigen Finanzrahmen (MFR) 2021–2027 und ein neues Eigenmittelsystem, mit dem die Einnahmen zur Finanzierung des Finanzrahmens generiert werden sollen, eröffnet. Die vorliegende Analyse stellt den vorgeschlagenen neuen MFR und das Eigenmittelsystem vor und bietet einen Abgleich mit dem Status quo sowie den Prioritäten, die das Europäische ...

Das Verfahren zur Verhandlung eines neuen siebenjährigen Finanzplans für die EU wurde nun offiziell mit der Veröffentlichung der Vorschläge der Kommission für einen mehrjährigen Finanzrahmen (MFR) 2021–2027 und ein neues Eigenmittelsystem, mit dem die Einnahmen zur Finanzierung des Finanzrahmens generiert werden sollen, eröffnet. Die vorliegende Analyse stellt den vorgeschlagenen neuen MFR und das Eigenmittelsystem vor und bietet einen Abgleich mit dem Status quo sowie den Prioritäten, die das Europäische Parlament in seinen im Frühjahr 2018 angenommenen Entschließungen zum Ausdruck gebracht hat.

Post-2020 MFF and own resources: Ahead of the Commission's proposal

27-04-2018

On 2 May, the Commission is expected to publish proposals for a new multiannual financial framework (MFF) for the European Union for the years after 2020, as well as for a new system of own resources (OR) to provide the EU with the means to finance its annual budgets. The following day the proposals are to be presented to the Parliament's Committee on Budgets (BUDG).The proposals are being published as a package, and will be followed by a series of further legislative proposals for individual spending ...

On 2 May, the Commission is expected to publish proposals for a new multiannual financial framework (MFF) for the European Union for the years after 2020, as well as for a new system of own resources (OR) to provide the EU with the means to finance its annual budgets. The following day the proposals are to be presented to the Parliament's Committee on Budgets (BUDG).The proposals are being published as a package, and will be followed by a series of further legislative proposals for individual spending programmes to appear later in May and in June. The next MFF and OR system will set the EU's priorities and determine much of its scope for action for a period of at least five years. The proposals are an opportunity for the Commission to respond to a set of longstanding issues concerning how the EU finances its priorities, and to new issues arising from a political landscape that has changed profoundly since 2013, when the EU last negotiated its multiannual budget plan. Chief among these are the twin pressures affecting both the revenue and spending sides of the budget: the loss of a major net contributor country in the departure from the EU of the United Kingdom; and growing pressure to respond to new challenges mainly linked to the refugee and migration crisis that erupted after the current MFF was put in place, as well as ongoing issues resulting from the financial and sovereign debt crises. The Commission's proposals for a new MFF and OR will also respond to the question of how big the EU budget should be. Currently subject to a political cap of 1 % of the EU's GNI, the EU budget is modest in comparison with the government budgets of the EU's Member States. Nevertheless, negotiations over whether to increase this cap will be politically fraught in a context where some Member States are under pressure to reduce national budget deficits. Other issues at stake in the negotiations are the flexibility, conditionalities, structure and duration of the next MFF, and the sensitive question of whether to increase the EU's financial autonomy by endowing it with new and significant own resources.

Ergebnisorientierte Haushaltsplanung: Ein Mittel zur Verbesserung der EU-Ausgabenpolitik

16-03-2018

2015 rief die Europäische Kommission eine Initiative mit der Bezeichnung „Ein ergebnisorientierter EU-Haushalt“ ins Leben. Ihr Ziel besteht darin, die Ausgabenmentalität zu verändern und Ergebnisse zu einer horizontalen Priorität für den EU-Haushaltsplan zu machen. Die Initiative basiert auf einer beliebten modernen Haushaltsplanungsmethode, die als „ergebnisorientierte Haushaltsplanung“ bekannt ist. In diesem Papier werden die Methode und ihre Anwendung auf den EU-Haushaltsplan dargestellt. Es wird ...

2015 rief die Europäische Kommission eine Initiative mit der Bezeichnung „Ein ergebnisorientierter EU-Haushalt“ ins Leben. Ihr Ziel besteht darin, die Ausgabenmentalität zu verändern und Ergebnisse zu einer horizontalen Priorität für den EU-Haushaltsplan zu machen. Die Initiative basiert auf einer beliebten modernen Haushaltsplanungsmethode, die als „ergebnisorientierte Haushaltsplanung“ bekannt ist. In diesem Papier werden die Methode und ihre Anwendung auf den EU-Haushaltsplan dargestellt. Es wird erklärt, warum die ergebnisorientierte Haushaltsplanung, obwohl sie nicht einfach umzusetzen ist, als reizvolle Möglichkeit zur Verbesserung des Preis-Leistungs-Verhältnisses und zur Erhöhung der Transparenz und Steigerung der demokratischen Rechenschaftspflicht in Bezug auf die öffentlichen Finanzen angesehen wird. Zudem wird in dem Papier analysiert, welche Entwicklung der Ansatz der ergebnisorientierten Haushaltsplanung innerhalb des EU-Haushaltssystems genommen hat und welche Herausforderungen und Hindernisse für seine Umsetzung noch bestehen. Das Engagement der Europäischen Kommission für die Grundsätze der ergebnisorientierten Haushaltsplanung sowie die breite Unterstützung der Idee, die vom Europäischen Parlament und vom Rat zum Ausdruck gebracht wurde, geben Grund zur Annahme, dass diese Bemühungen auch unter dem mehrjährigen Finanzrahmen nach 2020 fortgeführt werden.

Reform des Eigenmittelsystems der Europäischen Union

06-03-2018

Die Kommission wird voraussichtlich im Mai 2018 neben den Vorschlägen für einen neuen mehrjährigen Finanzrahmen (MFR) ein Legislativpaket für den Zeitraum nach 2020 zu den sogenannten Eigenmitteln, d. h. zu den Einnahmequellen des EU-Haushalts, vorlegen. Das Europäische Parlament hat seit langem auf die Mängel des aktuellen Eigenmittelsystems hingewiesen. Der Haushaltsausschuss hat daher in Erwartung der Vorschläge der Kommission einen Initiativbericht zu den Prioritäten des Parlaments erstellt. ...

Die Kommission wird voraussichtlich im Mai 2018 neben den Vorschlägen für einen neuen mehrjährigen Finanzrahmen (MFR) ein Legislativpaket für den Zeitraum nach 2020 zu den sogenannten Eigenmitteln, d. h. zu den Einnahmequellen des EU-Haushalts, vorlegen. Das Europäische Parlament hat seit langem auf die Mängel des aktuellen Eigenmittelsystems hingewiesen. Der Haushaltsausschuss hat daher in Erwartung der Vorschläge der Kommission einen Initiativbericht zu den Prioritäten des Parlaments erstellt. Dieser Bericht soll auf der Plenartagung im März erörtert werden.

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