MFF: EP Budget Committee gives green light to ‘investment budget’

The European Parliament’s Budget Committee has given its consent to the Council Regulation laying down the 2014-2020 Multiannual Financial Framework (the EU's long-term budget). Jean-Luc Dehaene, who negotiated with the Council on behalf of the European Parliament, welcomes the vote in favour of the EU budgetary framework for the coming seven years: “Despite the lack of increase in overall figures, the EPP Group has improved the MFF enough to give it its full backing. We have turned this financial framework into a forward-looking investment fund for growth and jobs that puts the money where it is most needed. Further delaying the vote would be irresponsible political behaviour as it would endanger the continuity of many EU-funded programmes.”

Dehaene points out that the payments shortfall for 2013 - an estimated 11.2 billion euro – has been fully made up, a key demand of the European Parliament. The other political conditions defined by the Parliament were also met by the Member States and this will substantially improve the functioning of the budget. Dehaene: “We have been successful in improving the MFF so that EU money is spent where our priorities lie, most importantly in stimulating the European economy.”

2.5 billion euro have been frontloaded to tackle youth employment and for the Horizon 2020, Erasmus and SME programmes. Maximum flexibility between years and categories allows the transfer of money to where and when it is most needed. A mid-term review of the MFF (at the latest in 2016), will enable the next Parliament to reassess the budgetary priorities of the EU, should the economy pick up in the meantime. The MFF doesn’t lose sight of those most hit by the economic crisis: 1 billion euro extra goes to the Fund for European Aid to the Most Deprived, which finances national food distribution schemes.

With a view to financing the EU in the longer term, Parliament’s key demand to reform the current system of own resources was also met, through the creation of a high level group. Dehaene: “In times of austerity it is understandable Member States are eager to reduce their contributions to the EU budget. At the same time, they rely on the EU budget for many programmes that have a strong local and regional impact. The only way to break this stalemate is through a system of direct own resources for the EU.”