Debate: Multiannual Financial Framework , Rule of Law Conditionality Mechanism and the Recovery Fund for Europe
Date: WEDNESDAY, 11 NOVEMBER 2020
Speaker: Johannes Hahn
Language: EN

We started this journey in 2018 with Brexit as the biggest challenge for the next EU budget. At that time, of course, nobody could have imagined that the COVID-19 pandemic would have sadly taken and threatened the lives of our citizens, and put a strain on our economies, businesses and the internal market. This new context has been very present in our MFF negotiations. We are demonstrating that Europe is up to the challenge, that the European institutions can live up to their responsibilities in the face of this unparalleled crisis. Unprecedented circumstances call for unprecedented responses. That is why, once adopted, the new long-term budget and Next Generation EU will represent the largest package ever financed by the EU budget, with a total of EUR 1.8 trillion. This package will help Member States, business, regions and citizens face the pandemic and rebuild a post-COVID-19 Europe. A new Europe, which will be greener, more digital, more resilient, and better fit for the current and forthcoming challenges. These negotiations have been lengthy and difficult. But yet, thanks to the constructive spirit of all institutions, including this Parliament, which I thank, we have managed to reach a good deal for our institutions, and most importantly for our citizens. May I say, on a personal note, I want in particular to thank the key representatives of Parliament in these negotiations. We all know it was not always easy to get an agreement, to find a common position, but at the end of the day you made it, we made it and I think this is something I would really like to honour, to salute and to acknowledge. It’s a good deal for the Parliament, I have to acknowledge, and I am grateful for this, because you have attained a number of achievements including the reinforcement of EUR 50 billion for specific programmes compared to the European Council agreement of 21 July. This includes flagship programmes of our Union and key priorities of this Parliament, such as Horizon Europe, InvestEU, Erasmus+, Creative Europe, Health for Europe... you name it. The increase is very substantial for programmes such as Rights and Values, and as I mentioned already, EU for Health, which will, respectively, double and triple compared to the level agreed by Member States in July. Moreover, 30% of EU funds will be used to fight climate change – the highest share ever and a key priority of this Parliament, while the Do No Harm principle applies to the whole of the EU budget. Let me just underline that we must also endeavour to translate this ambition into sectorial legislation. The agreed package also pays attention to biodiversity and gender mainstreaming. The agreement boosts the modernisation of our policies. Considerable funding will be allocated to research and innovation, fair climate and digital transition via the Just Transition Fund and the Digital Europe Programme; and to preparedness, recovery and resilience via the Recovery and Resilience Facility, rescEU and the new EU4Health programme. Parliament called several times for flexibility, and this budget will have increased mechanisms to guarantee it has the capacity to address unforeseen needs. The Flexibility Instrument has been increased further by EUR 1 billion. The overall functioning of special instruments is preserved even with a new set of special instruments, which followed the European Council agreement. The Commission has also committed in a declaration to present a review of the long-term budget by 1 January 2024 and, as appropriate, a proposal for revision. Another big achievement by Parliament and the Union as a whole, which I salute, is a clear roadmap towards new own resources to repay the borrowing for Next Generation EU. A reform of own resources has not been undertaken since the 1980s and we have also succeeded in this during these difficult times. Another collective achievement is our agreement on a rule of law mechanism giving us more power to protect European Union taxpayers’ money. This will be accompanied by an integrated and interoperable information and monitoring system to ensure the collection and comparability of information on the final beneficiaries, to avoid and counter conflicts of interest, irregularities, issues of double funding and criminal mis-use of funds. So I count on your support in translating these provisions into the sectorial legislation. With all this good news we must not forget one thing: we still have essential steps to take for the MFF and Next Generation EU to be in place as of 1 January 2021 as agreed, for the annual budget and completing the sectorial instruments. Time is extremely short and the COVID-19 conditions remain extremely challenging. Our citizens and businesses need the EU budget support. We are on the final sprint and once again I thank you for your strong commitment and dedication.