amended proposal for the 2021-2027 mff and 2021-2024 ... · proposal from the european commission,...

This briefing provides a graphic presentation of the next long-term budget and recovery instrument (Next Generation EU) proposed by the European Commission on 27 May 2020 (COM 2020). By comparing it with the Commission’s initial proposal of May 2018 (COM 2018) and the European Parliament’s negotiating position, we highlight the changes for the future financing of EU priorities.

The preparation of the EU’s next Multiannual Financial Framework (MFF) started formally in May 2018 with the proposal from the European Commission, more than two years ago. The European Parliament adopted its detailed negotiating position on 14 November 2018. The European Council, however, held its first substantial debate on the proposals only on 20 February 2020, failing to find agreement. The coronavirus pandemic has complicated the situation further. Given the new circumstances, on 27 May 2020 the Commission put forward an amended proposal for the 2021-2027 MFF and, linked to it, a recovery instrument, entitled Next Generation EU (NGEU) for the years 2021-2024.

COM2018 MFF2014-2020 allocations

EP position MFF

€1 094.4

1 324.1

€1 134.6

€ billion (2018 prices)

COM2020 MFF Next Generation EUNext Generation EU€1 100 €750€1 324.1

Comparison of 2014-2020 MFF allocations with the Commission’s proposals and the EP position for 2021-2027€ billion, (2018 prices)

Share of total COM2020 MFF (%)

COM2020 MFF Next Generation EU€ 1 100 € 750

12.8

32.5

34.0

2.8

1.8

9.3

6.8

€ 141

€ 31

€ 75

€ 374

€ 357

€ 19

€ 103

9.3

81.3

6.0

1.3

2.1

€ 70

€ 610

€ 45

€ 10

€ 15

Share of total NGEU (%)

Breakdown of COM2020 MFF and Next Generation EU (NGEU)€ billion, (2018 prices)

European Public Administration

Neighbourhood and the World

Resilience, Security and Defence

Migration and Border Management

Natural Resources and Environment

Cohesion and Values

Single Market, Innovation and Digital

Amended proposal for the 2021-2027 MFF and 2021-2024 recovery instrument ‘Next Generation EU’ in figures

EPRS | European Parliamentary Research Service

Authors: Magdalena Sapala and Nadejda Kresnichka-NikolchovaMembers’ Research Service

PE 651.993 - July 2020

BRIEFINGInfographic2021-2027 MFF

https://ec.europa.eu/commission/publications/factsheets-long-term-budget-proposals_en

https://www.europarl.europa.eu/doceo/document/TA-8-2018-0449_EN.html?redirect

https://ec.europa.eu/info/publications/mff-legislation_en

€80.9 + €13.5

€26.0

€1.3 + €30.3

€2.3

€8.2€1.5

€3.7

€5€19.9

€13.2

€1.7

€2.9

Horizon Europe

Margin

Space programme

InvestEU

DigitalEurope

Single Market

Connecting Europe Facility

Agencies

Other

Solvency Instrument

ITER

Euratom

Head

ing1 - Single market, innovation and digital -COM 2020MFF€

140.6billion

+NGEU

€69.8billion

Other: Cooperation in the �eld of taxation (FISCALIS) (€0.24), Cooperation in the �eld of customs (CUSTOMS) (€0.84), EU Anti-Fraud Programme (€0.13), Other (€0.27)

Heading 1: Single Market, Innovation and Digital

2021-2027 MFF and Next Generation EU by headingThe bubble charts represent the Commission’s amended proposal on the MFF (COM2020 MFF) for each heading and how their component programmes change with the additional allocation from NGEU, where applicable. The programmes within each heading are represented in relation to the total allocation, including both MFF and NGEU (COM2020 MFF + NGEU). The bubbles in lighter solid colour represent the amount for each programme as proposed in COM2020 MFF. The bubbles in grey dotted pattern represent the amount of COM2020 MFF + NGEU for programmes boosted by NGEU. The bar charts highlight the percentage change between the initial Commission proposal of May 2018 (COM 2018 MFF) and, first, the Commission amended proposal of May 2020, with and without the NGEU (shown in bars in the same colour as the bubbles), and, second, the European Parliament position (in dark blue bars). The grey vertical line represents COM 2018 MFF. The small pie charts to the right show the percentage share of each heading within the total proposed COM 2020 MFF + NGEU.

Heading 2: Cohesion and Values

Other: Support to the Turkish-Cypriot Community (€0.17), European Solidarity Corps (€0.9), Justice, Rights and Values (€0.7), Protection of the Euro Against Counterfeiting (Pericles) (€0.01), Other (€1)

European RegionalDevelopment Fund

European Social Fund+

€86.3Erasmus +€24.6

Cohesion Fund €40.7

REACT EU

Margin€2.1

Other€2.8

Creative Europe €1.5

Agencies €1.4

Head

ing 2 - Cohesion and values -COM2020MFF€ 374.5 billion+

NGEU€610

billion

Technical Support Instrument + Recovery and Resilence Facility

Financing costs NGEU€17.4

€0.8 + €560

€196.9

€50

EP position MFF

COM2020 MFF + NGEUCOM2020 MFF + NGEUCOM2020 MFF + NGEU

COM2020 MFF-3.1%

-17.5%-17.5%

141.8%141.8%141.8%

43.7%

7.6%

-7.5%-7.5%

13%13%13%

29.3%

-90%-90%

-8.4%-8.4%

2.9%2.9%

-17.4%-17.4%60.4%

100%

25.5%

no change

no change

new programmenew programme

no change

-7%-7%5.8%

new programme NGEUnew programme NGEUnew programme NGEU

Horizon Europe

Euratom

ITER

InvestEU

Connecting Europe Facility

Tourism

Single Market Programme

EU Anti-Fraud Programme

FISCALIS

Solvency instrument

Space Programme

Change vs COM2018 MFFdecrease (%) increase (%)


EP position MFF

COM2020 MFF

Support to the Turkish-Cypriot CommunityRecovery and Resilience Facility

Pericles

ESF+

European Solidarity Corps

Creative Europe

Justice, Rights and Values

Erasmus+

-1.8%

-19.7%

-3.8%

-6.7%

new programme NGEUnew programme NGEU

no change

no change

new programme NGEUnew programme NGEU

10.8%

12.5%

-28.6%

ERDF + CF

React EU

Financing costs NGEU

-96.5%

new

19.1%

55.9%-19.6%

-7.4%70.9%

-19.5%131%

11.4% of total Comission proposal 2020 + NGEU

53.2% of total Commission proposal 2020 + NGEU





4% of total Commission proposal 2020 + NGEU








Heading 1 amounts to €210.5 billion, of which one third would be provided under NGEU. It represents 11.4% of the total proposed financial package (COM2020 MFF+ NGEU). Horizon Europe is the biggest programme. Boosted by €13.5 billion from NGEU, it amounts to €94.4 billion. However, even with the reinforcement proposed by the Commission it remains below the European Parliament position. The InvestEU fund will be predominantly financed under NGEU (+€30.3 billion). Its allocation under the MFF was significantly reduced (-90%). Such front-loading of the fund will allow the concentration of financial support in the first years of recovery. The allocations for some other programmes are reduced in comparison to COM2018 MFF, e.g. the Connecting Europe Facility by 8.4% (including a 32% decrease in investments in energy). The margin left under the heading is reduced by 73%.

Heading 2 is the biggest among all seven MFF headings. Reinforced with €610 billion from NGEU, it amounts to €984.5 billion and represents more than half of the overall proposed package (MFF+NGEU). Of this amount, €560 billion would be spent through the Recovery and Resilience Facility, and €50 billion through React EU. Against the expectations of the European Parliament, many other programmes under heading 2 are cut in comparison with the MFF proposal of 2018. The reduction falls for example on the Pericles programme (-28.6%), European Solidarity Corps (-19.6%), Justice Rights and Values (-19.5%) and Erasmus+ (- 6.7%). Moreover, the margin left under the heading is reduced by 47.7%.

2


Heading 3: Natural Resources and Environment

Margin€1.4

Agencies - Borders

€11

Integrated Border Management Fund

€6.7

Asylum and Migration Fund

€11

Head

ing 4 - M

igration and border management - COM2020 MFF € 31.1 billionAgencies - Migration€1.1

Heading 4: Migration and Border Management

Head

ing5 - Resilie

nce, security and defence -COM2020MFF€ 19.4billion

+NGEU

€9.7

billion

European Defence Fund

Military Mobility

rescEU

Internal Security Fund

Margin€1

AgenciesNuclear safety and decommissioning

(BG, SK): €0.6

Nuclear decommissioning

(LT): €0.5

EU4Health€1.6 + €7.7

€2.9€2.2

€1.5

€8

€1.1 + €2

Heading 5: Resilience, Security and Defence

EP position MFFCOM2020 MFF

Asylum and Migration Fund

Integrated Border Management Fund

19.5%

9.7%


33.5%

Decentralised agencies - Borders

Decentralised agencies - Migration

-36.9%

41.2%

no change

no change

44.4%

COM2020 MFF

EP position MFF


COM2020 MFF + NGECOM2020 MFF + NGECOM2020 MFF + NGEEAGF + EAFRD

European Maritime and Fisheries Fund

LIFE

7.4%7.4%2.8%

26%

33.4%

8.9%

-0.3%

Just Transition Fund

18.2%

new programmenew programmenew programmenew programme

Internal Security Fund

NuclearDecommissioning (LT)

European Defence Fund

Military Mobility

moved from ESF+ and reinforced by NGEUreinforced by NGEUmoved from ESF+ and reinforced by NGEU

-30.2%

0.2%

41.2%

no change

1 891.8%

-11%

20.2%

Union Civil Protection Mechanism (rescEU)


NuclearDecommissioning (BG & SK)

EU4Health

no change

no change

no change

no change

no change

-74%

150%150%

EP position MFF

COM2020 MFF

COMCOM20202020 MFF + NGEU MFF + NGEU






















European Agricultural Guarantee Fund

LIFE

Agencies€0.4

European Maritimeand Fisheries Fund€5.9

Other€1

EuropeanAgricultural Fundfor Rural Development

Margin€1.5

Just Transition Fund

€258.3

€4.8

€10 + €30

€75 + €15

Head

ing3 - Natural resources and environment -COM2020MFF €

356.9billion

+NGEU

€45billion

Heading 3 is the second biggest in terms of resources. It represents 32.5% of the proposed MFF alone and 21.7% of the total package (MFF+NGEU). Initially proposed by the European Parliament, the Just Transition Fund has been included in the MFF by the Commission and endowed with €10 billion. An additional €30 billion for the fund has been envisaged under NGEU. Both agricultural funds (EAGF and EAFRD) have slightly increased in comparison with COM2018 MFF. Still, the sum of the two funds and the additional €15 billion for the EAFRD from NGEU (€348.3 billion) is below the European Parliament position. The allocation for the LIFE programme has been slightly cut by the Commission and is also below the European Parliament’s expectations. Unlike the margins under all other headings, the margin under heading 3 increases in the amended proposal from €0.81 billion to €1.5 billion.

The Commission and the EP both agree on an increase in EU spending on migration and border management. In comparison to the proposal of 2018, the Asylum and Migration Fund is reinforced by 19.5% and the Integrated Border Management Fund by 33.5%. These increases are above the expectations of the EP. While the allocation for the decentralised agencies dealing with migration increases from €0.8 billion to €1.1 million (+41.2%), the spending on border management agencies falls from €10.6 billion to €6.7 billion. The margin under heading 4 is reduced by 33%.

The allocation for heading 5 is the smallest among all seven headings and represents 1.6% of the total proposed package (MFF+NGEU). The largest item under heading 5, the European Defence Fund, is reduced by 30.1% in COM 2020. Also the allocation for military mobility is much lower than initially (-74%). The Commission proposed to cut by 11% (€136 million) the allocation to rescEU under the MFF and, at the same time, to reinforce it with €2 billion under NGEU. Moreover, the allocation for the EU4Health programme (previously included in the ESF+ under heading 2), has been substantially increased, both under the MFF and NGEU and amounts to €9.3 billion. The margin is scaled down by 37%.

3

Amended proposal for the 2021-2027 MFF and 2021-2024 recovery instrument ‘Next Generation EU’ in figures

NotesAll figures are in constant 2018 prices. For detailed assumptions see: M. Parry, M. Sapała, 2021-2027 multiannual financial framework and own resources: Analysis of the Commission’s proposal, EPRS, European Parliament, July 2018, p. 28.Acronyms: Multiannual Financial Framework (MFF), European Parliament (EP), European Commission proposal for the 2021-2027 MFF of 2 May 2018 (COM2018 MFF), European Commission amended proposal for the 2021-2027 MFF of 27 May 2020 (COM2020 MFF), European Commission proposal for the recovery instrument, Next Generation EU (NGEU). Data sources: European Commission, A Modern budget for a Union that protects, empowers and defends. The Multiannual Financial Framework for 2021-2027, COM(2018) 321 final, 2 May 2018; European Commission, The EU budget powering the recovery plan for Europe, COM(2020) 442 final, 27 May 2020; M. Parry, M. Sapala, 2021-2027 multiannual financial framework and new own resources. Analysis of the European Commission’s proposal, In-depth Analysis, EPRS, July 2018; European Parliament resolution of 14 November 2018 on the Multiannual Financial Framework 2021-2027 – Parliament’s position with a view to an agreement. Committee on Budgets, European Parliament.The briefing is an updated version of the EPRS publication ‘The 2021-2027 Multiannual Financial Framework in figures’, January 2020.

This Briefing is part of a set related to the MFF. Others cover ‘Single Market, Innovation and Digital’, ‘Cohesion funds, values and economic and monetary union’, ‘Natural Resources and Environment’, ‘Migration and Border Management’, ‘Security and Defence’, ‘Neighbourhood and the World’ and ‘European Public Administration’.

Humanitarianaid

Neighbourhood, Development and International Cooperation Instrument

Pre-accessionassistance

Margin

Other€1.1

€0.7

€12.8

CFSP€2.4

Overseas Countriesand Territories: €0.4

Head

ing 6 - Neighbourhood and the world -COM2020MFF€ 102.7 billion+

NGEU€15.5

billion

€9.8 + €5€75.5 + €10.5

Heading 6: Neighbourhood and the World

European Schoolsand Pensions

Administrative expenditureof the institutions

Head

ing 7 - European public administration -COM2020MFF€74.6billion

€57.5 €17.1

Heading 7: European Public Administration

NDICI

Humanitarian Aid

CFSP

Overseas Countries and Territories

51.2%51.2%

8.5%8.5%4.4%

-10.3%

1.1%Pre-Accession Assistance

33.8%

Change vs Commission proposal 2018

decrease (%) increase (%)

EP position 2021-2027

Commission proposal 2020

Commission proposal 2020 + NGECommission proposal 2020 + NGE

-4.7%

no change

no change

no change

no change

EP position MFF

COM2020 MFF

European Schools and Pensions

Administrative expenditure of the institutions

0.4%


no change

no change

-1.8%















Heading 7 represents 4% of the total proposed package (MFF+NGEU). The Commission deducted €1 billlion (-1.8%) from its initial allocation for the administrative expenditure of the institutions. This is against the European Parliament’s negotiating position.

The Commission proposed a reduced (-5.7%) MFF allocation for heading 6 (€102.7 billion). Thus, the gap between this proposal and the European Parliament position amounts to €10.7 billion. The Commission also proposed to reinforce heading 6 with €15.5 billion from NGEU, and distribute it between the NDICI (€10.5 billion) and Humanitarian Aid (€5 billion). The CFSP and the margin are cut by 10.3% and by more than 77% respectively.

DISCLAIMER AND COPYRIGHT This document is prepared for, and addressed to, the Members and staff of the European Parliament as background material to assist them in their parliamentary work. The content of the document is the sole responsibility of its author(s) and any opinions expressed herein should not be taken to represent an official position of the Parliament. Reproduction and translation for non-commercial purposes are authorised, provided the source is acknowledged and the European Parliament is given prior notice and sent a copy. © European Union, 2020.

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https://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_IDA(2018)625148

https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM%3A2018%3A321%3AFIN

https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM%3A2020%3A442%3AFIN



https://www.europarl.europa.eu/doceo/document/TA-8-2018-0449_EN.html

https://www.europarl.europa.eu/doceo/document/TA-8-2018-0449_EN.html

https://www.europarl.europa.eu/resources/library/media/20200218RES72887/20200218RES72887.pdf

https://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_BRI(2020)646131

ttp://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_BRI(2020)646136

https://www.europarl.europa.eu/RegData/etudes/BRIE/2019/633148/EPRS_BRI(2019)633148_EN.pdf


http://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_BRI(2020)646137






amended proposal for the 2021-2027 mff and 2021-2024 ... · proposal from the european commission,...

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