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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.

Discharge for 2019 budget – European Commission, executive agencies and EDFs

21-04-2021

During the April plenary session, the European Parliament is expected to decide on granting discharge for the 2019 financial year to the different institutions and bodies of the European Union (EU). The first item on the agenda of the debate and vote on discharge 2019 is the report covering the European Commission (including six executive agencies) which is in charge of the management of the biggest share of the EU budget. Separate discharge is granted to the Commission concerning the management ...

During the April plenary session, the European Parliament is expected to decide on granting discharge for the 2019 financial year to the different institutions and bodies of the European Union (EU). The first item on the agenda of the debate and vote on discharge 2019 is the report covering the European Commission (including six executive agencies) which is in charge of the management of the biggest share of the EU budget. Separate discharge is granted to the Commission concerning the management of the European Development Funds (EDFs) which are not part of the general budget of the EU as they are established by an intergovernmental agreement. Parliament's Committee on Budgetary Control (CONT) recommends that Parliament should grant the Commission and all six executive agencies discharge for 2019. It also recommends granting discharge in respect of the implementation of the operations of the EDFs in 2019.

Discharge for 2019 budget – EU decentralised agencies and joint undertakings

21-04-2021

During its April plenary session, in the context of the discharge procedure for the financial year 2019, the European Parliament is due to vote on the discharge for each of 32 EU decentralised agencies and eight joint undertakings for their implementation of the 2019 budget. The Committee on Budgetary Control (CONT) proposes to grant discharge to all of these entities, except for the European Border and Coast Guard Agency (Frontex), for which it proposes to postpone the discharge decision.

During its April plenary session, in the context of the discharge procedure for the financial year 2019, the European Parliament is due to vote on the discharge for each of 32 EU decentralised agencies and eight joint undertakings for their implementation of the 2019 budget. The Committee on Budgetary Control (CONT) proposes to grant discharge to all of these entities, except for the European Border and Coast Guard Agency (Frontex), for which it proposes to postpone the discharge decision.

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.

Amending letter No 1 to the EU draft general budget 2021

02-12-2020

Following the 10 November 2020 political agreement between the European Parliament and the Council on the Multiannual Financial Framework (MFF) for 2021 to 2027, the Commission adopted an amending letter (AL 1/2020) to adjust its draft EU budget for the year 2021, presented in July 2020. Moreover, AL 1/2020 also includes updated estimates for agricultural expenditure, other adjustments and technical updates. Overall, AL 1/2020 decreases commitment appropriations by €2 608.8 million and increases ...

Following the 10 November 2020 political agreement between the European Parliament and the Council on the Multiannual Financial Framework (MFF) for 2021 to 2027, the Commission adopted an amending letter (AL 1/2020) to adjust its draft EU budget for the year 2021, presented in July 2020. Moreover, AL 1/2020 also includes updated estimates for agricultural expenditure, other adjustments and technical updates. Overall, AL 1/2020 decreases commitment appropriations by €2 608.8 million and increases payment appropriations by €2 609.3 million on the July 2020 draft budget. The AL 1/2020 changes are incorporated in the draft 2021 budget, which is currently being discussed between Parliament and Council negotiators in the ongoing budgetary conciliation.

Parliament's reading of the EU 2021 budget

05-11-2020

During the November I plenary session, the European Parliament is due to decide on amendments to the Council's position on the draft EU budget for 2021. The Parliament is preparing its reading in the extraordinary situation of a lack of agreement on the forthcoming multiannual financial framework (MFF) for 2021-2027 and in the context of the far-reaching consequences of the coronavirus crisis. The report of the Committee on Budgets reverses many of the reductions proposed by the Council. Furthermore ...

During the November I plenary session, the European Parliament is due to decide on amendments to the Council's position on the draft EU budget for 2021. The Parliament is preparing its reading in the extraordinary situation of a lack of agreement on the forthcoming multiannual financial framework (MFF) for 2021-2027 and in the context of the far-reaching consequences of the coronavirus crisis. The report of the Committee on Budgets reverses many of the reductions proposed by the Council. Furthermore, it proposes a considerable increase in the contributions of the 2021 budget to Parliament priorities, in particular the 15 EU flagship programmes, in line with the ongoing MFF negotiations.

Protecting the EU budget against generalised rule of law deficiencies

25-06-2020

When preparing the 2021-2027 multiannual financial framework, the European Commission proposed to strengthen the link between EU funding and respect for the rule of law. To this end, on 3 May 2018, the Commission presented a proposal for a regulation that would introduce a general rule of law conditionality into the EU's financial rules. Any Member State where a generalised rule of law deficiency is found could be subject to the suspension of payments and commitments, reduced funding and a prohibition ...

When preparing the 2021-2027 multiannual financial framework, the European Commission proposed to strengthen the link between EU funding and respect for the rule of law. To this end, on 3 May 2018, the Commission presented a proposal for a regulation that would introduce a general rule of law conditionality into the EU's financial rules. Any Member State where a generalised rule of law deficiency is found could be subject to the suspension of payments and commitments, reduced funding and a prohibition on concluding new commitments. On 13 November 2019, the decision of the European Parliament's Budget and Budgetary Control Committees to enter interinstitutional negotiations on the proposal was announced in plenary. Negotiations will be based on Parliament's first-reading position adopted in plenary in April 2019. Parliament's main amendments are concerned with the definition of generalised deficiencies, procedural issues (the panel of independent experts and the need to put Parliament on an equal footing with Council), and with the protection of end beneficiaries of EU funding. The rule of law conditionality has become an important element of the negotiations on the legislative package for the 2021-2027 MFF and the Recovery Instrument for the aftermath of the coronavirus pandemic. Second edition. The 'EU Legislation in Progress' briefings are updated at key stages throughout the legislative procedure.

Discharge for 2018 budget - EU decentralised agencies and joint undertakings

11-05-2020

At its May plenary session, in the context of the discharge procedure for the financial year 2018, the European Parliament is due to vote on the discharge for 32 EU decentralised agencies and eight joint undertakings for their implementation of the 2018 budget. The Committee on Budgetary Control proposes to grant discharge to all of these entities, yet highlights a number of areas that require further improvement.

At its May plenary session, in the context of the discharge procedure for the financial year 2018, the European Parliament is due to vote on the discharge for 32 EU decentralised agencies and eight joint undertakings for their implementation of the 2018 budget. The Committee on Budgetary Control proposes to grant discharge to all of these entities, yet highlights a number of areas that require further improvement.

Financing the European Union [What Think Tanks are thinking]

07-02-2020

The European Union is preparing its next long-term budget – the 2021-2027 Multiannual Financial Framework (MFF). However, more than a year and a half after the European Commission made its MFF proposal, differences persist over the size of the budget and spending levels on individual policies. The European Parliament has called for an ambitious budget, capable of financing new initiatives, such as the European Green Deal. Despite tensions, a decision on the next MFF is still expected in 2020, before ...

The European Union is preparing its next long-term budget – the 2021-2027 Multiannual Financial Framework (MFF). However, more than a year and a half after the European Commission made its MFF proposal, differences persist over the size of the budget and spending levels on individual policies. The European Parliament has called for an ambitious budget, capable of financing new initiatives, such as the European Green Deal. Despite tensions, a decision on the next MFF is still expected in 2020, before the planned start of the next financing period at the beginning of the following year. The later the decision comes, the more significant the negative consequences for beneficiaries of the EU budget, as some aid programmes could be delayed. This note offers links to recent commentaries, studies and reports from international think tanks on the EU’s long-term budget and related issues. The current item includes a recent package of publications on the MFF prepared by the European Parliamentary Research Service.

Plenary round-up – Strasbourg, October II 2019

24-10-2019

The October II plenary session highlights included statements and debates on the outcome of the European Council meeting of 17 and 18 October 2019, and a review of the Juncker Commission's term. Parliament also debated statements made on behalf of the Vice-President of the European Commission/High Representative of the Union for Foreign Affairs and Security Policy (HR/VP) on the Turkish military operation in north-east Syria and its consequences, and on the violent suppression of young people's and ...

The October II plenary session highlights included statements and debates on the outcome of the European Council meeting of 17 and 18 October 2019, and a review of the Juncker Commission's term. Parliament also debated statements made on behalf of the Vice-President of the European Commission/High Representative of the Union for Foreign Affairs and Security Policy (HR/VP) on the Turkish military operation in north-east Syria and its consequences, and on the violent suppression of young people's and students' protests in Iraq. Debates took place, inter alia, on Commission and Council statements on the effects of the Thomas Cook bankruptcy, on the dangers of violent right-wing extremism, on criminalisation of sexual education in Poland and on storms in Europe, followed by debates on accession negotiations with North Macedonia and Albania. Members declined to approve the 2017 accounts of the European Asylum Support Office (EASO) and European Council/Council, and adopted Parliament's position on the general budget of the EU for 2020, which now goes to conciliation.

Buduća događanja

07-09-2021
EPRS online policy roundtable: What is the future of (European) sovereignty?
Drugo događanje -
EPRS
08-09-2021
EPRS online policy roundtable: Statistics, Data and Trust: Why figures matter [...]
Drugo događanje -
EPRS
21-09-2021
EPRS online Book Talk with David Harley: Matters of Record: Inside European Politics
Drugo događanje -
EPRS

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