Debate: Conclusions of the European Council meeting of  June  - Preparation of the European Council meeting of - July
Date: WEDNESDAY, 8 JULY 2020
Speaker: Maroš Šefčovič
Language: EN

Ahead of the European Council next week, I would like to focus on two points with you, both of which hold great significance for our future. First, the state of play with regard to the Next Generation EU recovery plan and the revamped Multiannual Financial Framework proposals.  I really would like to thank the President of the European Council for his very active approach for the very dynamic bilaterals he had with the heads of state and governments of the European Union and for the close cooperation with the Commission. All this is needed, because this is a very ambitious package that responds directly and forcefully to the needs of our Union. The future MFF reinforced by the Next Generation EU crisis instrument will bring the total financial firepower of the EU budget to almost EUR two trillion in today’s money – that’s a very impressive, but at the same time a very necessary figure. It is a necessary response to what is a crisis without precedence in the history of the European Union. It is the plan designed not only to see us through the first years of recovery, but also to ensure our financial programmes can deliver strong support for our priorities until 2027 and beyond.  I would like first to stress that the European Parliament plays, and will continue to play, a vitally important role in this process. Later today, President von der Leyen, together with President Michel and Chancellor Merkel, with President Sassoli, will meet under Article 324 where we will start, through – and I believe thanks to – our leaders, the first convergence of views creating an atmosphere conducive to the compromise which will be needed at the leaders’ summit on 17 and 18 July to which President Michel just referred. The meeting will follow on from the encouraging discussions the leaders had during the recent video conference. Overall, we in the Commission feel that there is a positive dynamic in support of the proposals which I have just described. In particular, there is an agreement that this unprecedented crisis required an exceptional response. There is an agreement that this response should be financed through Commission borrowing and there is also agreement on the fact that own resources really need to be increased. In addition, we feel there is agreement that our efforts should be targeted towards Europe’s most affected regions, fostering cohesion and convergence and that this crisis and the response which we are debating right now will create a unique opportunity to reform our economies and make them greener, more digital and more resilient. The proposed package reflects much of what was expressed by Parliament in the resolution of 15 May. In particular, I would like to thank this House for its continued support for the new own resources. Like you, we are convinced that this is the right approach. New own resources will support our shared objectives. They will help us repay what we borrow for Next Generation EU without compromising the funding of our future programmes. While we are taking a big step forward in the coming weeks by agreeing on the proposals already on the table, we can take a giant leap when we set out new proposals next year. We will soon put forward a roadmap for these extra resources, on how to achieve these new own resources. In the meantime, I count on you to help relay the message, also at home to your governments, to your constituencies and to the national parliaments, as to how much we need their support, because time is of the essence, leadership is needed more than any time before, and we have only a few weeks left. We all know that it’s absolutely crucial for our response to the crisis to reach agreement before the summer break if we want to make sure that before the end of the year we will also complete the process of national ratifications needed for the own resources decision. Not only are we unable to start borrowing without this decision, but if the national parliaments endorse the debate, the results and these new instruments, I believe that it would also ensure the democratic legitimacy of these innovative proposals on an unprecedented wide scale.  To continue, I also would like to underline the fact that this would also help us to create the new tools not only for sustainable economic recovery, but also for clear demonstrations that our democratic rules will always prevail even in times of crisis. So an extremely constructive approach by all institutions is required and therefore I think that we need to listen to each other and factor in our different views at all stages of the process. Certainly, the involvement of this Parliament in all aspects is fundamental. Every euro will be spent through programmes co-designed and co-decided by this Parliament. You will play a strong scrutiny role through the budget discharge and because of legal constraints we are relying on an extraordinary system to mobilise the extra recovery funding, but this should in no way prevent either this Parliament or the Council from playing their roles to the full. Special arrangements will be put in place to ensure that this is the case. We are ready to work with you and the Council on the institutional declaration, to put this on a formal footing and to ensure that cooperation among our institutions is as fast as it can be. As I said already, time is short but I’m confident that with the right mix of ambition, realism and leadership we can deliver for the citizens of the European Union. The Commission will need your help, and we will need to be quick in all phases of negotiations. This includes agreement on our bridging proposal to jump start the recovery plan under the current MFF as well. The sooner we can launch REACT-EU and the solvency support instrument, the better. My second point today concerns Brexit. As you know, my colleague Michel Barnier is today in London where another round of negotiations is taking place. I think it’s very important because we are now less than six months away from the end of the transition period. Together with the United Kingdom, we recently took stock of the ongoing negotiations where we jointly stressed our willingness to undertake all possible efforts to come to an agreement, seeking solutions that will allow us to sign a one-of-a-kind partnership. Since then, as you know, not much progress has been made. Yet the simple truth is that the negotiations will in a few months one way or another. So if we are to reach an agreement, we will have to resolve a number of serious divergences on fundamental issues. These relate to the robust guarantees for a level playing field, a balanced agreement on fisheries, and an effective governance framework.  You of course know these points very well, and you know that they are important for us because of the principles of fair competition, the protection of our citizens – principles which are at the very heart of our Union. We will do everything possible to reach an agreement but here, too, time is very short and no one can say with certainty where the negotiations will lead us by the end of the year. Even if we do reach a deal, many things will still change in our relationship with the United Kingdom – for citizens, for businesses, for administration. We therefore need to plan for these changes and we will continue to assist the national authorities and other stakeholders in their preparations.  Alongside the negotiations, as President von der Leyen emphasised to the leaders, we must continue our work to ensure proper implementation of the Withdrawal Agreement, which is a precondition for the establishment and maintaining of trust. As a Co—Chair of the EU—UK Joint Committee, I can add that we are also moving into a higher gear on this front and will remain very attentive on all its dimensions.  European unity continues to be our main asset, and the European Parliament is of course also in this regard playing an important role in all of its work. I am deeply grateful for your unwavering support as laid out in the report adopted by this Parliament on 18 June.  Thank you very much for your attention and for all the support that will be needed in the coming days and weeks.