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What to make of yesterday's agreement? (THREAD)
Despite the drama and significant concessions on key aspects of the package, it is difficult to get away from the fact that #EUCO have just agreed on a financial package of 1.82tn EUR – the largest in the EU’s history 1/12
Despite the drama and significant concessions on key aspects of the package, it is difficult to get away from the fact that #EUCO have just agreed on a financial package of 1.82tn EUR – the largest in the EU’s history 1/12
Such an agreement came at a price though.
Rebates on Member States’ contributions to the EU budget did not just remain, they were generally increased (Austria’s was almost doubled).
The rule of law mechanism is significantly watered down in essence. 2/12
Rebates on Member States’ contributions to the EU budget did not just remain, they were generally increased (Austria’s was almost doubled).
The rule of law mechanism is significantly watered down in essence. 2/12
On the governance of the #RecoveryInstrument, the Dutch got the ‘emergency brake’ they sought for to allow any country to block payments to countries which have not fulfilled their reform promises. 3/12
On climate, the so-called ‘climate conditionality’ (linking EU funds to climate objectives) was ditched in favour of a looser text for Member States to become climate neutral by 2050.
The Just Transition Fund is scaled down from EUR 40bn to a disappointing EUR 10bn. 4/12
The Just Transition Fund is scaled down from EUR 40bn to a disappointing EUR 10bn. 4/12
On other COVID-related funds, REACT-EU keeps a substantial envelope (EUR 47.5bn), but the Solvency instrument to help companies through the Coronavirus crisis gets slashed.
The Health programme is brought down from EUR 9.4bn to an abysmal EUR 1.7bn. That is significant. 5/12
The Health programme is brought down from EUR 9.4bn to an abysmal EUR 1.7bn. That is significant. 5/12
As Member States focused most of their attention on the Recovery Instrument, the majority of the ‘regular’ MFF budget lines are largely untouched.
For instance, the #ConnectingEurope Facility would benefit from EUR 28.4bn, the same proposed by the Commission in May 2020. 6/12
For instance, the #ConnectingEurope Facility would benefit from EUR 28.4bn, the same proposed by the Commission in May 2020. 6/12
On #cohesionpolicy, the budget is actually increased (from Michel’s initial box) from EUR 315bn to EUR 320bn.
The increase comes the now infamous ‘MFF-sweeteners’ provided to some Member States such as CZ (+1bn), DE (+500m), SI (+300m), BE (+200m), CY (+100m), MT (+50m). 7/12
The increase comes the now infamous ‘MFF-sweeteners’ provided to some Member States such as CZ (+1bn), DE (+500m), SI (+300m), BE (+200m), CY (+100m), MT (+50m). 7/12
Of interest to some @CPMR_Europe Members, NSPAs and Outermost Regions get a boost as part of their respective additional special allocation (40 EUR per inhabitant vs 30 EUR), the Finnish NSPAs get an additional EUR 100m @northsweden @EuropaRUP @EastNorthFIN_EU 8/12
German transition regions also get an additional EUR 500m. Cofinancing rates for outermost regions are also set at 85% max, as per the current period. 9/12
Malta and Cyprus will be pleased with their additional allocation 'to recognize the challenges posed by their situation as island Member States' (point 66).
Such additional allocations should also have been devised for island regions though @CPMR_ISLANDS 10/12
Such additional allocations should also have been devised for island regions though @CPMR_ISLANDS 10/12
Not much was said about the EUR 5bn Brexit Adjustment Reserve ‘to counter adverse consequences in Member States and sectors that are worst affected’.
That is a very promising development, in particular for
@CPMR_Europe @NSC_CPMR @Atlantic_Arc Members 11/12
That is a very promising development, in particular for
@CPMR_Europe @NSC_CPMR @Atlantic_Arc Members 11/12
What next?
The European Parliament is due to adopt a #MFF resolution this week, there will be massive disappointment on key areas (rule of law, climate conditionality, own resources, cuts to the JTF…) 12/12
The European Parliament is due to adopt a #MFF resolution this week, there will be massive disappointment on key areas (rule of law, climate conditionality, own resources, cuts to the JTF…) 12/12
It remains to be seen what particular aspects the Parliament will fight for as in view of securing a couple of concessions of its own.
Link to MFF conclusions: https://www.consilium.europa.eu//media/45109/210720-euco-final-conclusions-en.pdf
Watch out for @CPMR_Europe analysis (cf @fmolica @eugenialleal) shortly! - END OF THREAD
Link to MFF conclusions: https://www.consilium.europa.eu//media/45109/210720-euco-final-conclusions-en.pdf
Watch out for @CPMR_Europe analysis (cf @fmolica @eugenialleal) shortly! - END OF THREAD
