Debate: Interim report on the proposal for a mid-term revision of the Multiannual Financial Framework -
Date: TUESDAY, 3 OCTOBER 2023
Speaker: Johannes Hahn
Language: EN

I can only stress again the importance of having the MFF revision in place by 1 January next year, which is also supported by the European Parliament. Failure to do so would mean that we would not be able to support Ukraine in a lasting manner to cover the most pressing needs and important reforms. We would neither be able to react effectively to the recent natural crises and emergencies that have affected our countries. The economic and geopolitical context has dramatically changed since 2020. Within its limits, the Union budget has powered a strong EU response. As a result, the existing budgetary flexibility under the MFF is largely depleted. This hinders the EU credibility and ability to act swiftly and urgently. That is why we came forward with a targeted proposal of the MFF last June. I welcome the fact that the European Parliament’s report concurs with the priorities identified by the Commission. A structural solution to support Ukraine until 2027 via the new Ukraine facility, an instrument which will support Ukraine’s recovery, modernisation, reforms and accession path via a long-term plan, but also catering for short-term needs. Further, the situation in Lampedusa, the fallout from the Russian war of aggression and challenges at our borders demonstrate that migration is a huge European challenge that requires a European response. We must provide the means to address the most pressing needs resulting from the current situation, ensuring a swift agreement and implementation of the pact for migration and asylum. The impact of the Russian war of aggression on Ukraine calls for strengthening partnerships with third countries. Supporting our close partners, as well as replenishing the neighbourhood, development and international cooperation instrument cushion to respond to future crises. Hence our proposals to increase heading 4 and heading 6. One is for migration and borders; number 6 for neighbours and external. The multiplication of natural disasters and numerous humanitarian crises both in the Union and outside which we have experienced this summer highlight the importance of our emergency instruments. The initial allocations have been more than exhausted in the past two years. Needs remain high and will continue to do so for the remainder of the MFF. It’s urgent to reinforce the solidarity and emergency aid reserve and the flexibility instrument. It’s also time to foster our strategic autonomy and competitiveness. Beyond the political priorities, our MFF also requires some adjustments to respect commitments already made. It was already mentioned, the EURI line. This would reflect the uncertain nature of financing costs. And then it’s about the resources of the European public administration, which are under pressure due to the inflation. The Commission proposal is targeted and focuses on the most pressing needs. As such, it should be considered as a package. So once again we are ready to support. I am grateful for the Council to try to reach an agreement as fast as possible.