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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.

Recovery plan for Europe: State of play

07-06-2021

In December 2020, the adoption of the legislative package on the 2021-2027 multiannual financial framework (MFF) and the Next Generation EU (NGEU) recovery instrument marked the end of an important stage in the process of launching a unique financial stimulus package – the recovery plan for Europe. However, in order to make the plan fully operational, additional conditions need to be met and preparatory steps completed. First, there is the financing of NGEU, based on borrowing operations carried ...

In December 2020, the adoption of the legislative package on the 2021-2027 multiannual financial framework (MFF) and the Next Generation EU (NGEU) recovery instrument marked the end of an important stage in the process of launching a unique financial stimulus package – the recovery plan for Europe. However, in order to make the plan fully operational, additional conditions need to be met and preparatory steps completed. First, there is the financing of NGEU, based on borrowing operations carried out by the European Commission on behalf of the European Union. These operations could start only once the Member States had ratified the Own Resources Decision (ORD). This procedure was completed before the end of May 2021. In the meantime, the Commission started preparing for its role as a borrower on an unprecedented scale and published its diversified funding strategy for the financing of NGEU. The Commission has ensured that the preparations are advanced and that it would be ready to begin the borrowing operations as soon as ratification of the ORD was finalised and the act in force. In parallel, preparations are ongoing for the spending of the biggest part of NGEU (90 %) under the Recovery and Resilience Facility (RRF). This process includes the drawing up of national recovery and resilience plans by the Member States, their evaluation by the European Commission, and approval by the Council of the EU. Only then will the Commission conclude an agreement with each Member State on a legal commitment authorising the financial contribution to be made, and begin pre-financing. An indicative timeline of the whole process shows that the first payments for Member States could be made between July and September 2021.

Policy Departments’ Monthly Highlights - June 2021

04-06-2021

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.

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.

The Largest 50 Beneficiaries in each EU Member State of CAP and Cohesion Funds

20-05-2021

This report provides the findings of the study on “The Largest 50 beneficiaries in each EU Member State of CAP and Cohesion Funds” prepared at the request of the CONT committee. Based on the analysis of more than 12 million beneficiaries of the common agricultural policy (CAP) in 2018 and 2019 and about 600 000 beneficiaries receiving cohesion funds between 2014 and 2020 it identifies the largest direct and ultimate beneficiaries of EU funds. Moreover, it covers the results of an assessment of almost ...

This report provides the findings of the study on “The Largest 50 beneficiaries in each EU Member State of CAP and Cohesion Funds” prepared at the request of the CONT committee. Based on the analysis of more than 12 million beneficiaries of the common agricultural policy (CAP) in 2018 and 2019 and about 600 000 beneficiaries receiving cohesion funds between 2014 and 2020 it identifies the largest direct and ultimate beneficiaries of EU funds. Moreover, it covers the results of an assessment of almost 300 systems for the public disclosure of the beneficiaries of CAP and Cohesion policy. Finally, it provides recommendations to enhance the public disclosure on beneficiaries of EU funds. Note: the lists and analyses of the beneficiaries are based on the data available in the reporting systems at the time of data collection. Substantiated requests for corrections due to incorrect or modified data will be included in the Corrigenda below (Annex IV).

Ārējais autors

Willem Pieter DE GROEN, CEPS Roberto MUSMECI, CEPS Damir GOJSIC, CEPS Jorge NUNEZ, CEPS Daina BELICKA, CSE COE

Brexit adjustment reserve

18-05-2021

As part of the preparations for the United Kingdom's withdrawal from the European Union, the European Council agreed in July 2020 to create a Brexit adjustment reserve within the special instruments outside the budget ceilings of the European Union's multiannual financial framework, with a budget of €5 billion to counter unforeseen and adverse consequences in Member States and sectors that are most affected. The European Commission adopted a proposal for a regulation on the Brexit adjustment reserve ...

As part of the preparations for the United Kingdom's withdrawal from the European Union, the European Council agreed in July 2020 to create a Brexit adjustment reserve within the special instruments outside the budget ceilings of the European Union's multiannual financial framework, with a budget of €5 billion to counter unforeseen and adverse consequences in Member States and sectors that are most affected. The European Commission adopted a proposal for a regulation on the Brexit adjustment reserve on 25 December 2020. Under the proposal, the reserve will support public expenditure incurred by Member States from 1 July 2020 to 31 December 2022 for eligible measures, which include support for affected sectors, training, or new border facilities. Funding will be available for all Member States, distributed in two allocation tranches, with 80 % of the resources due to be allocated to Member States in the form of pre-financing, to be disbursed in 2021. Each country's pre-financing allocation is calculated based on the importance of its trade with the United Kingdom (UK) and, where applicable, its dependence on fisheries in UK waters. All Member States will have to submit an application for funding by 30 September 2023, and those whose eligible expenditure exceeds both the pre-financing amount and 0.06 % of their national gross domestic product will be eligible for an additional contribution, to be paid in 2024. First edition. The 'EU Legislation in Progress' briefings are updated at key stages throughout the legislative procedure.

Amending Budget No 2/2021: Covid-19 response, Multiannual Financial Framework adjustment, and mobilisation of the EU Solidarity Fund

12-05-2021

Draft Amending Budget No 2/2021 (DAB 2/2021) aims to finance actions for prevention and the response to the coronavirus pandemic, in particular preparatory work for the 'digital green certificate' and genetic sequencing. It also introduces technical adjustments following the adoption of the Multiannual Financial Framework (MFF) for 2021-2027, and secures part of the financing for mobilisation of the EU Solidarity Fund (EUSF) – for which a decision is submitted simultaneously. The proposed EUSF mobilisation ...

Draft Amending Budget No 2/2021 (DAB 2/2021) aims to finance actions for prevention and the response to the coronavirus pandemic, in particular preparatory work for the 'digital green certificate' and genetic sequencing. It also introduces technical adjustments following the adoption of the Multiannual Financial Framework (MFF) for 2021-2027, and secures part of the financing for mobilisation of the EU Solidarity Fund (EUSF) – for which a decision is submitted simultaneously. The proposed EUSF mobilisation aims to cover expenditure following natural disasters in Greece and France, and the Covid-19 public health emergency (in respect of 17 Member States and 3 accession countries). The European Parliament is expected to vote on the Council position on DAB 2/2021 and on the proposal to mobilise the EUSF during the May plenary session.

Policy Departments' Monthly Highlihts - May 2021

12-05-2021

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.

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.

Communicating and perceiving the EU budget: Challenges and outcomes

03-05-2021

This analysis presents the EU budget as a subject of communication, while also outlining its importance for the perception of the EU's democratic legitimacy and the challenges involved in presenting it to the citizens. Currently, there are more Europeans supporting a bigger EU budget than ever before (48 %), and the distribution of opinions cannot be explained simply by identifying them as belonging to the group of the net beneficiaries or that of the net contributors. Citizens' perceptions and desires ...

This analysis presents the EU budget as a subject of communication, while also outlining its importance for the perception of the EU's democratic legitimacy and the challenges involved in presenting it to the citizens. Currently, there are more Europeans supporting a bigger EU budget than ever before (48 %), and the distribution of opinions cannot be explained simply by identifying them as belonging to the group of the net beneficiaries or that of the net contributors. Citizens' perceptions and desires regarding EU budget spending priorities are very different. Moreover, their perceptions are rather different from the actual EU spending priorities as well. The size and scope of the EU budget, budgetary cycles and timelines, revenue and expenditure structures, performance, different EU and national, institutional and political actors – these are all factors influencing the way citizens understand and relate to the EU budget. Some recent changes, such as the increased focus on results in budgetary reporting and the reform of the system of own resources, have the potential to contribute positively to the EU budget communication and to make it more comprehensible to citizens.

Gaidāmie notikumi

14-06-2021
AIDA-AGRI Public Hearing on AI, Agriculture and Food Security
Uzklausīšana -
AIDA AGRI
14-06-2021
Workshop: the EU's current role in GRECO and ambitions for the future
Darbseminārs -
CONT
15-06-2021
Public Hearing on "Various aspects of women in poverty following the COVID impact"
Uzklausīšana -
FEMM

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