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BackThe negotiations of the 2014-2020 Multiannual Financial Framework are in full swing: the Council wants to set the budget volume of the Multiannual Financial Framework before the end of the year if possible. Several Member States reportedly are aiming at significantly reducing the budget volume. This is in contrast to the European Parliament, which has already demanded a 5 % increase of the Multiannual Financial Frameworks compared to the current budget. The European Parliament regards combating youth unemployment as an important element of the negotiations on the new financial framework.
Concerning the negotiations on the 2014-2020 Multiannual Financial Framework, the Council has not least put the brakes on because of the tense financial situation of national budgets, triggered by the financial crisis. However, the volume, recommended by the European Commission for the seven years from 2014, is comparatively moderate: € 1,083 billion resp. 1.11 % of the gross national income (GNI) shall be used for a variety of EU programmes. Compared to the proposal by the Commission on the 2007-2013 Multiannual Financial Framework, this is a significantly lower starting point for the negotiations, because then a volume of 1.26 % of GNI had been envisaged.
European Parliament demands investments to tackle unemployment and to combat poverty
As shown by a report of the competent Committee on Budgets, representatives of the European Parliament have chosen a different approach. The MEPs point out that the EU Budget is an investment budget. The extremely high rate of unemployment, in particular with regard to young people, the increasing poverty rate and the challenges faced by the education system had to be tackled by investing sufficient funds from the EU budget. At the same time, the EU representatives voiced harsh criticism that since 2008, the national budgets themselves had still increased by an average of 2 percent p.a., whilst the EU Budget was shrinking. The national budgets in the European Union already were already 45 times that of the EU budget volume.
Currently no more money made available for the European Social Fund
With regard to the EU Budget, the heads of state and the finance ministers have put their brakes on, thereby giving great cause for concern. In contrast to the proposal of the European Commission to increase the European Social Fund to € 84 billion, the planned savings for the next financial framework could result in the volume of the European Social Fund even falling below the funding for the current Multiannual Financial Framework. Apart from that, EU Budget Commissioner Janusz Lewandowski informed this week that the EU finance ministers had already reduced the funding volume for the EU Budget 2012 to such a degree that the planned payments for the European Social Fund and the educational exchange programme Erasmus could not be made this year due to a lack of funds. For insiders this is little surprising: a year ago already, both the Commission and the European Parliament warned that the scheduled implementation of the EU programmes would only be possible if the EU Budget (as had actually been planned by the current Multiannual Financial Framework) was sufficiently furnished.
An agreement of the finance ministers on the volume of the EU budget for the next seven years (2014-2020) is expected by the end of the year. The MEPs have already threatened to reject the financial framework should it turn out to be too low. In respect of the Multiannual Financial Framework one can certainly expect a hot autumn.
European Parliament demands investments to tackle unemployment and to combat poverty
As shown by a report of the competent Committee on Budgets, representatives of the European Parliament have chosen a different approach. The MEPs point out that the EU Budget is an investment budget. The extremely high rate of unemployment, in particular with regard to young people, the increasing poverty rate and the challenges faced by the education system had to be tackled by investing sufficient funds from the EU budget. At the same time, the EU representatives voiced harsh criticism that since 2008, the national budgets themselves had still increased by an average of 2 percent p.a., whilst the EU Budget was shrinking. The national budgets in the European Union already were already 45 times that of the EU budget volume.
Currently no more money made available for the European Social Fund
With regard to the EU Budget, the heads of state and the finance ministers have put their brakes on, thereby giving great cause for concern. In contrast to the proposal of the European Commission to increase the European Social Fund to € 84 billion, the planned savings for the next financial framework could result in the volume of the European Social Fund even falling below the funding for the current Multiannual Financial Framework. Apart from that, EU Budget Commissioner Janusz Lewandowski informed this week that the EU finance ministers had already reduced the funding volume for the EU Budget 2012 to such a degree that the planned payments for the European Social Fund and the educational exchange programme Erasmus could not be made this year due to a lack of funds. For insiders this is little surprising: a year ago already, both the Commission and the European Parliament warned that the scheduled implementation of the EU programmes would only be possible if the EU Budget (as had actually been planned by the current Multiannual Financial Framework) was sufficiently furnished.
An agreement of the finance ministers on the volume of the EU budget for the next seven years (2014-2020) is expected by the end of the year. The MEPs have already threatened to reject the financial framework should it turn out to be too low. In respect of the Multiannual Financial Framework one can certainly expect a hot autumn.