Changes from report parliamentary committee draft to plenary report

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

▸5 unchanged paragraphs

on general guidelines for the preparation of the 2025 budget, Section III – Commission

(2023/2220(BUI))

The European Parliament,

– having regard to Article 314 of the Treaty on the Functioning of the European Union,

– having regard to Article 106a of the Treaty establishing the European Atomic Energy Community,

Removed– having regard to its resolution of 15 December 2022 on upscaling the 2021-2027 multiannual financial framework: a resilient EU budget fit for new challenges,

Added– having regard to the revised Council Regulation (EU, Euratom) xxx laying down the multiannual financial framework for the years 2021 to 2027 (MFF Revision),

– having regard to Council Regulation (EU, Euratom) 2022/2496 of 15 December 2022 amending Regulation (EU, Euratom) 2020/2093 laying down the multiannual financial framework for the years 2021 to 2027,

Removed– having regard to Council Regulation (EU, Euratom) 2020/2093 of 17 December 2020 laying down the multiannual financial framework for the years 2021-2027 and to the joint declarations agreed between Parliament, the Council and the Commission in this context and the related unilateral declarations,

– having regard to its position of 16 December 2020 on the draft Council regulation laying down the multiannual financial framework for the years 2021 to 2027,

Added– having regard to Council Regulation (EU, Euratom) 2020/2093 of 17 December 2020 laying down the multiannual financial framework for the years 2021-2027 and to the joint declarations agreed between Parliament, the Council and the Commission in this context and the related unilateral declarations,

– having regard to its interim report on the proposal for a mid-term revision of the multiannual financial framework 2021-2027,

Added– having regard to its resolution of 27 February 2024 on the draft Council regulation amending Regulation (EU, Euratom) 2020/2093 laying down the multiannual financial framework for the years 2021 to 2027,

– having regard to its resolution of 10 May 2023 on the impact on the 2024 EU budget of increasing European Union Recovery Instrument borrowing costs,

– having regard to its resolution of 15 December 2022 on upscaling the 2021-2027 multiannual financial framework: a resilient EU budget fit for new challenges,

Removed– having regard to the revised Council Regulation (EU, Euratom) xxx laying down the multiannual financial framework for the years 2021 to 2027 (MFF Revision),

▸7 unchanged paragraphs

– having regard to the Commission proposal of 16 May 2022 for a regulation of the European Parliament and of the Council on the financial rules applicable to the general budget of the Union (COM(2022)0223),

– having regard to the Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources,

– having regard to Council Decision (EU, Euratom) 2020/2053 of 14 December 2020 on the system of own resources of the European Union,

– having regard to the Commission proposal of 22 December 2021 for a Council decision amending Decision (EU, Euratom) 2020/2053 on the system of own resources of the European Union (COM(2021)0570) and its position of 23 November 2022 on the proposal,

– having regard to Council Regulation (EU) 2020/2094 of 14 December 2020 establishing a European Union Recovery Instrument to support the recovery in the aftermath of the COVID-19 crisis,

– having regard to Regulation (EU, Euratom) 2020/2092 of the European Parliament and of the Council of 16 December 2020 on a general regime of conditionality for the protection of the Union budget,

– having regard to the Commission communication of 11 December 2019 entitled ‘The European Green Deal’ (COM(2019)0640) and its resolution of 15 January 2020 responding to it,

Added– having regard to Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (European Climate Law),

Added– having regard to the Agreement adopted at the 21st Conference of the Parties to the UNFCCC (COP21) in Paris on 12 December 2015 (the Paris Agreement),

– having regard to the Interinstitutional Proclamation on the European Pillar of Social Rights of 13 December 2017 and its resolution of 19 January 2017 thereon, to the Commission Action Plan of 4 March 2021 on the implementation of the European Pillar of Social Rights and to the Porto declaration on social affairs adopted by the members of the European Council in May 2021,

Added– having regard to the EU gender equality strategy 2020-2025,

Added– having regard to the special report of the European Court of Auditors “Gender mainstreaming in the EU budget: time to turn words into action" 2021,

Added– having regard to the United Nation’s Sustainable Development Goals,

Added– having regard to the Commission communication of 1 February 2023 entitled ‘A Green Deal Industrial Plan for the Net-Zero Age’ (COM(2023)0062),

Added– having regard to the proposal of 20 June 2023 for a regulation of the European Parliament and of the Council on establishing the Strategic Technologies for Europe Platform (‘STEP’) and amending Directive 2003/87/EC, Regulations (EU) 2021/1058, (EU) 2021/1056, (EU) 2021/1057, (EU) No 1303/2013, (EU) No 223/2014, (EU) 2021/1060, (EU) 2021/523, (EU) 2021/695, (EU) 2021/697 and (EU) 2021/241 the Union (COM(2023)335);

Added– having regard to the proposal of 20 June 2023 for a regulation establishing the Ukraine Facility;

– having regard to the general budget of the European Union for the financial year 2024 and the joint statements agreed between Parliament, the Council and the Commission annexed hereto,

Changed– having regard to the Council conclusions of ... on the 2025 budget guidelines (xxxxx/2024),(00000/2024),

– having regard to Rule 93 of its Rules of Procedure,

Change 1

Removed– having regard to the opinion of the Committee on Petitions,

Added– having regard to the letters from the Committee on Foreign Affairs, the Committee on Development, the Committee on Budgetary Control, the Committee on Employment and Social Affairs, the Committee on the Environment, Public Health and Food Safety, the Committee on Industry, Research and Energy, the Committee on Transport and Tourism, the Committee on Agriculture and Rural Development, the Committee on Culture and Education, the Committee on Constitutional Affairs and the Committee on Women’s Rights and Gender Equality,

Removed– having regard to the letters from the Committees on Foreign Affairs, on Development, on Employment and Social Affairs, on the Environment, Public Health and Food Safety, on Industry, Research and Energy, on Transport and Tourism, on Agriculture and Rural Development, on Culture and Education, and on Women’s Rights and Gender Equality,

Added– having regard to the report of the Committee on Budgets (A9-0068/2024),

Removed– having regard to the report of the Committee on Budgets (A90000/2024),

AddedA people-centred EU budget 2025: Investments tailored to improving people’s lives and boosting the Union’s competitiveness

RemovedA people-centred EU budget 2025: Investments tailored to improving people’s lives

Added1. Is adamant that, in times of geopolitical and institutional change, financial pressure, climate change and societal challenges, a reliable, robust, flexible, investment oriented EU budget remain instrumental for the implementation of the Union’s policies and central in responding to people’s increasing needs, leaving no-one behind through the green and digital transitions, in delivering prosperity and security for people and in boosting the competitiveness of the EU economy;

Removed1. Is adamant that, in times of institutional change, financial pressure and societal challenges, a reliable, robust and people-centred EU budget remain instrumental for the implementation of the Union’s policies and central in responding to people’s needs;

Added2. Highlights the difficult circumstances of the 2025 budget procedure, which is taking place at a moment of high international tensions and uncertainties, and in an election year when Parliament and the Commission will have to manage the transition of the legislature; is fully aware of the severe yet unavoidable calendar constraints and calls on all actors to take them duly into account with a constructive mindset;

Removed2. Recalls the difficult circumstances of the 2025 budget procedure, which is taking place at a moment of high international tensions and uncertainties, and in an election year when Parliament and the Commission will have to manage the transition of the legislature; is fully aware of the severe yet unavoidable calendar constraints and calls on all actors to take them duly into account with a constructive mindset;

Added3. Deeply regrets the fact that the Council did not succeed in reaching an agreement on the revision of the multiannual financial framework (MFF) before the end of 2023; notes, therefore, that it had to launch the budgetary procedure in the absence of certainty on several crucial elements in the financial programming for 2025, and is keenly aware of the regrettably very tight, and, in some instances, negative margins under the MFF ceilings;

Removed3. Regrets the fact that the Council did not succeed in reaching an agreement on the revision of the multiannual financial framework (MFF) before the end of 2023; notes, therefore, that it has to kick off the budgetary procedure in the absence of certainty on several crucial elements in the financial programming for 2025, and is keenly aware of the very tight, and, in some instances, negative margins under the MFF ceilings;

Added4. Considers the outcome of the MFF revision to be below the initial aspirations of the EP; underscores that a revision of the MFF regulation is an essential prerequisite for ensuring medium-term financial support to Ukraine, for enabling increased funding for targeted policy priorities, including the promotion of the EU’s strategic autonomy, and for safeguarding Union programmes and the budget’s flexibility in the light of higher-than-forecast interest rates and therefore higher-than-programmed Union borrowing costs; notes that the 2025 annual budgetary procedure will be the first exercise based entirely on the revised MFF regulation;

Removed4. Underlines that repayment of the European Union Recovery Instrument (EURI) borrowing costs is an obligation for the EU; notes that borrowing costs depend on the pace of disbursements under the Recovery and Resilience Facility (RRF) as well as on market fluctuations in bond yields and are therefore inherently unpredictable and volatile; reiterates its position that EURI borrowing costs should have been placed in a EURI special instrument over and above the MFF ceilings with a view to restoring some margin within Heading 2b and protecting budgetary space in the Flexibility and Single Margin Instruments; highlights that the MFF revision should not result in arrangements regarding the EURI line that cause undue collateral damage to programmed expenditure or availabilities under the non-thematic special instruments;

Added5. Recalls that the Joint Declaration agreed by the three institutions as part of the 2020 MFF agreement, whereby expenditure to cover NGEU financing costs “shall aim at not reducing programmes and funds”, still applies and serves as a reference point for the budgetary authority, notably for mobilising the EURI instrument to cover at least part of the NGEU borrowing cost shortfall; intends, therefore, to ensure that all programmes are properly resourced and the budget’s flexibility and response capacity maintained throughout the annual budgetary procedure; insists on the need for the Commission to provide reliable, timely and accurate information on NGEU borrowing costs and on expected Recovery and Resilience Facility disbursements throughout the budgetary procedure;

Removed5. Recalls that the European economy is forecast to grow very modestly (1.3 % in 2024 and 1.7 % in 2025), while inflation is expected to remain substantially above the 2 % which is used as an automatic deflator for the MFF (3.5 % in 2024 and 2.4 % in 2025); acknowledges that this means continued loss of purchasing power for a budget which must remain in balance and which is capped by absolute amounts; highlights the very low call rate for the Gross National Income (GNI)-based own resource in recent years (0.46 % in the draft budget 2024), as a result of the combined effect of inflation, low levels of payment appropriations and higher income from some other own resources;

Added6. Calls on Council and Commission to apply Regulation (EU, Euratom) 2020/2092 on a general regime of conditionality for the protection of the Union budget in full; stresses in particular that compliance with the rule of law is a fundamental pre-requisite to access EU funds; stresses that funds cannot be disbursed if Member States do not comply with all relevant requirements; reiterates that systemic issues with the rule of law, such as the violation of the principle of separation of powers or recent attempts in some Member States to attack the independence of the judiciary constitute clear risks to the financial interests of the EU and the protection of the EU Budget and calls on the Commission to allow no backsliding on achievements in the area of rule of law; reiterates its call on the Commission to ensure as a matter of urgency that suspended EU funds reach citizens, businesses, regional and local authorities, non-governmental organisations and any other relevant stakeholders via local governments and civil society organisations, in accordance with the Rule of Law Conditionality mechanism;

Removed6. Deplores the slow pace of progress in the Council on the reform of the own resources system; recalls its position on the amended Commission proposals, which endorses the introduction of new own resources; considers that the introduction of fresh genuine revenue sources, in line with the roadmap in the interinstitutional agreement, would serve to cover the additional budgetary burden arising from NextGenerationEU borrowing and would thereby shield the margins and flexibility mechanisms, which in turn would facilitate budgetary decision-making on unforeseen needs as well as new strategic foresight initiatives;

Added7. Underlines that repayment of the European Union Recovery Instrument (EURI) borrowing costs is a legal obligation for the EU and a non-discretionary expenditure item in the EU budget; notes that borrowing costs depend on the pace of disbursements under the Recovery and Resilience Facility (RRF) as well as on market fluctuations in bond yields and are therefore inherently unpredictable and volatile; reiterates its position that EURI borrowing costs should have been placed fully in a EURI special instrument over and above the MFF ceilings with a view to restoring some margin within Heading 2b and protecting budgetary space in the Flexibility and Single Margin Instruments; will strive to ensure that the application of the EURI cascade mechanism in the revised MFF will not result in arrangements that cause undue collateral damage to programmed expenditure or availabilities under the non-thematic special instruments;

Removed7. Regrets the fact that the capacity to respond to unforeseen events or to launch new initiatives is affected by budgetary scarcities and intends to rectify this situation to the extent possible; recalls that it is necessary to establish an additional permanent special instrument over and above the MFF ceilings so that the EU budget can better adapt and quickly react to crises and their social and economic effects;

Added8. Recalls that the European economy is forecast to grow very modestly (0.9 % in 2024 and 1.7 % in 2025), while inflation is expected to remain substantially above the 2 % which is used as an automatic deflator for the MFF (3.0 % in 2024 and 2.5 % in 2025); acknowledges that this means continued loss of purchasing power for a budget which must remain in balance and which is capped by absolute amounts; highlights the very low call rate for the Gross National Income (GNI)-based own resource in recent years (0.46 % in the draft budget 2024), as a result of the combined effect of inflation, low levels of payment appropriations and higher income from some other own resources; recalls its position that rebates and other correction mechanisms should be permanently abolished and that, until their permanent abolition, gross reductions to GNI-based national contributions should be subject to a fixed deflator of up to 2% per year;

Removed8. Is determined, despite these numerous constraints, to maintain a coherent and unified position which reflects its established policy priorities and institutional interests, minimises negative impacts on flagship programmes and maximises the concrete benefits for all citizens;

Added9. Deplores the absence of progress in the Council on the reform of the own resources system; recalls its position on the amended Commission proposals, which endorses the introduction of new own resources; considers that the introduction of fresh genuine revenue sources, in line with the roadmap in the interinstitutional agreement, would serve to cover the additional budgetary burden arising from NextGenerationEU borrowing and would thereby shield the margins and flexibility mechanisms, which in turn would facilitate budgetary decision-making on unforeseen needs as well as new strategic foresight initiatives; urges, furthermore, the Commission to continue the efforts to identify fresh, new and preferably genuine own resources and other revenue sources for the EU budget beyond the IIA;