On the MFF, Rule of Law Conditionality and Own Resources package

B90429/2020

European Parliament resolution on the MFF, Rule of Law Conditionality and Own Resources package

(2020/2923(RSP))

The European Parliament,

–having regard to Articles 2, 14, 15, 16 and 17 of the Treaty on the European Union (TEU) as well as Articles 295, 310, 311, 312, 322 of the Treaty on the Functioning of the European Union (TFEU),

–having regard to the political agreement reached on 5 November 2020 on the Regulation of the European Parliament and of the Council on a general regime of conditionality for the protection of the Union budget (‘Rule of Law Regulation’),

–having regard to the political agreements, including the joint and unilateral declarations, reached on 10 November 2020 on the Multiannual Financial Framework 2021-2027 (‘the MFF’), the InterInstitutional Agreement between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap for the introduction of new own resources (‘the IIA’) and the EU Recovery Instrument regulation (‘EURI’)

–having regard to the conclusions of the European Council adopted on 21 July 2020,

–having regard to the conclusions of the European Council adopted on 11 December 2020,

–having regard to Rule 132(2) of its Rules of Procedure,

A.whereas the COVID-19 outbreak has claimed thousands of lives in Europe and the world and has led to an unprecedented crisis with disastrous consequences for people, workers and businesses, and therefore requires an unprecedented response, especially after the second wave of COVID-19;

B.whereas all European Institutions involved have made sustained efforts to conclude the MFF, the IIA, the EURI and Rule of Law Regulation negotiations, securing timely adoption and implementation;

1.Welcomes the political agreements, including the joint and unilateral declarations, reached on 10 November on the MFF, the IIA and the EURI; highlights that the political agreements include, amongst other things, the following provisions:

An unprecedented EUR 1.8 trillion package including a Recovery Plan (EUR 750 bn);

EUR 16 bn top-up to the MFF 2021-2027 to be distributed to EU flagship programmes identified by the EP (EU4Health, Horizon Europe, Erasmus +, Integrated Border Management Fund, Frontex, InvestEU, Rights & Values, Creative Europe, Humanitarian Aid and NDICI);

An indicative roadmap to introduce new Own Resources starting in 2021;

An enhanced role for the European Parliament as budgetary authority, especially in case of a creation of a new instrument based on the Article 122 TFEU;

2.However, consistently negatively assesses the draft regulation on a general regime of conditionality for the protection of the Union budget; stresses that the conditionality of spending EU funds must be based on objective, specific, measurable and adequate criteria that do not allow for political instrumentalisation and uncertainty; expresses its concern about the compatibility of the regulation on a general regime of conditionality with the Treaties; underlines the necessity for the European Court of Justice to determine whether this regulation is compatible with EU law;

3.Strongly urges the European Commission to respect and commit to the Council conclusions of 10 and 11 December 2020, especially the clarifications, interpretative assurances of the draft Regulation on a general regime of conditionality for the protection of the Union budget and for the European Commission to comply with the common understanding included in these conclusions as to how the Regulation will be applied in practice;

4.Believes the Recovery Plan provides an investment impulse, which will assist Member States in combating the expected deep and long-lasting impact of the current crisis; stresses this plan will be instrumental in the ongoing efforts to transform our economies, to support SMEs and European industry, and to increase job opportunities and skills to mitigate the impact of the crisis on workers, consumers and families; finds it important that it addresses social and economic inequalities and the needs of those hit hardest by the crisis;

5.Expresses concern that the long-term viability of the MFF and its programmes should not be compromised via a short-term approach centred primarily on political compromise for financing recovery actions;

6.Instructs its President to forward this resolution to the Council, the European Council and the Commission.