Technical adjustment of the financial framework for 2021 in accordance with Article 4 of Council Regulation (EU, Euratom) 2020/2093 laying down the multiannual financial framework for the years 2021 to 2027

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL

1.introduction

Council Regulation (EU, Euratom) 2020/2093 laying down the multiannual financial framework for the years 2021 to 2027 (MFF Regulation) contains the financial framework table for EU-27 for the period 2021-2027, expressed in 2018 prices (Table 1).

The purpose of the present communication is to provide to the budgetary authority the result of the technical adjustment for 2021 in accordance with Article 4 of the MFF Regulation. In particular, the technical adjustment establishes the expenditure ceilings at current prices based on the fixed 2% deflator as provided for in Article 4(2) of the MFF Regulation.

On the basis of the latest economic forecasts, the communication also provides a calculation of the margin under the own resources ceiling set in accordance with the Council Decision on the system of own resources of the European Union adopted in accordance with Article 311(3) TFEU which is currently in force.

The communication also presents the calculation of the amounts available under the Single Margin Instrument under Article 11 of the MFF Regulation. Starting for the year 2022, the Commission will also calculate, as provided in Article 5 of the MFF Regulation, the programme specific adjustments to the programmes listed in Annex II of the MFF Regulation and include it in the communication on the technical adjustment.

In accordance with Article 4(1) of the MFF Regulation, the Commission will make the technical adjustment to the financial framework and communicate the results to the budgetary authority each year, ahead of the budgetary procedure for year n+1. Given that the technical adjustment for 2021 is based on the provisions of the MFF Regulation that was not adopted before the start of the budgetary procedure for 2021, this adjustment was, exceptionally, not made ahead of the budgetary procedure. The budget for 2021 should be, however, in line with the ceilings and amounts that result from this technical adjustment.

According to Article 4(4) of the MFF Regulation no further technical adjustments are made in respect of the year concerned, either during the year or as ex-post corrections during subsequent years.

2.Terms of the adjustment of the Multiannual Financial Framework table (Annex - tables 1-2)

Table 1 in the Annex shows the multiannual financial framework for EU-27 in 2018 prices of the MFF Regulation adjusted according to Article 2(1).

Table 2 shows the multiannual financial framework for EU-27 adjusted in current prices.

The financial framework expressed in percentage of the Union’s gross national income (GNI) is updated with the latest economic forecasts available from the European Commission (Autumn 2020). Based on that forecast, the GNI for 2021 is established at EUR 13 896 720 million in current prices for EU-27.

2.1.Main results of the technical adjustment of the Multiannual Financial Framework for 2021

The overall MFF ceiling for commitment appropriations for 2021 stands at EUR 163 483 million in current prices, which equals 1,18% of GNI. The overall MFF ceiling for payment appropriations corresponds to EUR 166 140 million in current prices, equivalent to 1,20% of GNI.

In application of the Council Decision on the system of own resources currently in force, this leaves a margin beneath the own recourses ceiling for payment appropriations of EUR 621 million. However, in application of Council Decision of 14 December 2020, 2020/2053/EU, Euratom on the system of own resources, the own resources ceiling for payment appropriations is set at 1.40% of GNI, which is equivalent to EUR 194 554 million in 2021. This would result in a margin between the MFF ceiling for payment appropriations and the own resources ceiling for payments appropriations of EUR 28 414 million, or 0,20% of GNI. Once the Council Decision 2020/2053/EU, Euratom enters into force, it will apply retroactively as of 1 January 2021.

The table below provides information for the period 2021-2027 on the margin in percentage of GNI between the MFF ceiling for payment appropriations and the own resources ceiling for payment appropriations of 1.20% of GNI currently in force. For information purposes, the table also provides the margin on the basis of the proposed new own resource ceiling of 1.40% of GNI.