European Parliament reacts as Council rejects budget proposals

European Parliament MEPs expressed their disappointment as the European Council rejected their proposals on the EU budget, or the Multi-Annual Financial Framework (MFF).

Speaking to the press, MEP and negotiator Jan Olbrycht was clear that negotiations could not move forward until Council and Parliament reach an agreement. MEPs could not commit to when this would happen, but Olbrycht hoped this would be “as soon as possible”.

Parliament and Council met for their tenth negotiating dialogue on the EU budget, as the institutions seek to iron out issues on the rule of law and allocation of resources.

Socialists & Democrats co-rapporteur Margarida Marques said the European Parliament had clear requests for political agreement to be reached. Firstly, allocation of resources for programmes needed to be increased.

Secondly, the European Parliament negotiating team is proposing that fines are used for further funding. Finally, the European Parliament is insisting that the recovery fund is anchored within the MFF, to create a more democratic, more transparent budget.

“There is an elephant in the room named the rule of law,” she added, saying that Parliament is insisting that there is a rule of law mechanism linked to access to EU funds. In July, citizens understood that they will have a European answer to their crisis, but three months later the money is still not arriving to member states, she said.

Parliament believes that costs of the new debts should be counted over and above the ceilings of the Multiannual Financial Framework. Parliament has proposed the Council to count the Next Generation EU recovery instrument – proposed in light of the Coronavirus pandemic – without redistributing the  €12.9 billion to flagship programmes.

This would leave a significant unallocated margin that would be very welcome to finance unforeseen needs in the coming years, given the troubled times we are going through. Council would retain full control over whether this margin is used or not for additional expenditure in the future”, the MEPs added.

However, Council has rejected this, arguing this was touching a hard stance set by the European Council summit in 2020. Parliament, on the other hand, is insisting this does not violate any agreements set by Heads of States and Governments.