Dutch position paper on new MFF, February 2018
The upcoming proposal and negotiations on the post-2020 Multiannual Financial Framework
(MFF) offer a unique opportunity to align the next MFF with the ongoing work on the EU’s
future agenda. The next MFF should reflect the common challenges faced by the European
Union in a sustainable manner. The Dutch government calls upon the European Commission
and Member States to take the following principles into account for our future Multiannual
Financial Framework.
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The new MFF should be future-proof, financially sustainable and flexible. New policy
priorities and Brexit necessitate strict prioritisation/reprioritisation.

•

Modernisation: EU funding should focus on policies that provide the most European
added value. In concrete terms, this means focusing on (additional) economies of scale
benefits, spillover effects, externalities and facilitating free market access. Public goods
like peace, security and European values also generate European added value (see below).

•

Expenditures: Brexit may hit the Netherlands twice. Firstly, Brexit will have a
disproportionately adverse economic impact on the Netherlands and several other
Member States. Secondly, the possibility of increasing Dutch gross contributions to the
EU budget, as a result of Brexit, risks further exacerbating the Netherlands’ position as
one of the largest net contributors. Under these circumstances, the Netherlands cannot
accept an increase in its gross contribution to the EU budget. A smaller EU implies a
smaller EU budget and, as a consequence, the post-2020 MFF will have to be adjusted
accordingly. In addition, new priorities will have to be financed from savings in existing
programmes.

•

Financing should be transparent, simplified and fair. The Dutch net position should be in
line with countries that have a similar level of wealth. An excessive net contribution will
need to be corrected and an increased tax burden for citizens and businesses should be
avoided.

•

A strong EU requires cooperation and solidarity. The Netherlands proposes to further
increase the conditionality of EU funding, especially ESI funds. Such a measure is
required in particular in the field of structural reforms stemming from country-specific
recommendations and the Stability and Growth Pact, and should be explored in the fields
of the rule of law and migration.

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Dutch position paper on new MFF, February 2018
Modernisation proposals
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A stronger budget focus on innovation and research would promote growth within the
EU. This should be reflected in a stronger future Framework Programme, based on
excellence and impact. ESI funds should be targeted more at facilitating innovation and
research. In addition, an extensive and innovative Trans-European Transport Network
should focus more on sustainability and supporting the EU’s climate agenda; it is a
prerequisite for economic growth in the EU.

•

Climate and sustainability should be consistently and substantially mainstreamed
throughout the MFF and well above the current 20% target.

•

Stronger focus is needed on internal and external aspects of migration, addressing the
root causes of migration in EU external policies. Also, Member States need stronger
support for migration management, the reception of asylum seekers, and border control.

•

The Netherlands supports an ambitious EU external policy. The new MFF should reflect
the importance of internal and external security, including a European Defence Fund.
The European Development Fund and the EU Trust Fund for Africa should be placed
within the MFF to increase the transparency of the EU budget.

•

On EMU, the Netherlands supports the Commission’s aim to encourage the
implementation of structural reforms in Member States through more effective use of the
EU budget.

•

Major spending policies like the Common Agricultural Policy and the Cohesion Policy
should be ambitiously reformed; these reforms should also yield the majority of the
financial savings needed to compensate for Brexit and to finance new priorities.

•

The Common Agricultural Policy should generate European added value and focus on
addressing market failures. There should be less emphasis on direct payments, which
should be targeted at public goods like food security, climate, the environment and food
safety. Effectiveness and efficiency should be reinforced by enhancing subsidiarity,
targeting support at national and regional needs and reducing implementation costs. The
Netherlands takes the view that the level of support per hectare should continue to reflect
economic circumstances including labour costs and land prices. With respect to
cofinancing, this approach is consistent with the notion of enhanced subsidiarity and
targeted payments addressing national and regional challenges, as well as with the need to
achieve further savings.

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Dutch position paper on new MFF, February 2018
•

Cohesion policy should focus more on the least developed Member States and contribute
to creating European added value (innovation, economic growth, interregional
cooperation, human capital, climate and energy). A focus on fewer themes will increase
effectiveness. Higher national cofinancing rates will contribute to further cost savings.

•

Administrative expenditures cannot be exempted from budget adjustment. In order to
control expenditures, the Netherlands calls upon the Commission to propose reforms,
including reforms in the EU pension system. Measures should apply to all EU staff,
including transition regimes.

•

Own resources: the Netherlands is in favour of abolishing the VAT base since it has little
value added and increases complexity. The Netherlands is reluctant to accept a new form
of own resources and will evaluate any proposal against the need to ensure simplicity and
transparency, while safeguarding national competencies.

•

More flexibility in the next MFF is needed and can be achieved by committing less
funding to national envelopes and increasing the scope for shifting resources between
headings.

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