They aim to reach an agreement at the Autumn 2019 European Council. On 5th December the Presidency of the Council of the European Union presented a “negotiating framework” with a proposal representing 1.07% of the EU27`s GNI. The end-of-month European Council did not reach an agreement between the Heads of State or Government of the Member States. Member States generally seemed divided between those committed to reducing the overall multiannual budget and those who feared that such a decision would affect the provisions on agricultural and cohesion policy. But what does this agreement mean for young people? And should we really celebrate? EU leaders called on European Council President Charles Michel to continue negotiations with a view to reaching a final agreement. Overview of the negotiating positions of the European Commission, the European Parliament and the Council of the European Union (+ European Council) on the EU`s Multiannual Financial Framework (MFF) for the period 2021-2027 – and later on a recovery plan for Europe – and the related political discussion with a view to an agreement. As time is running out to reach agreement on several fronts, observers and stakeholders should prepare for further shifts before the end of the year. On 21 July 2020, EU leaders agreed on a total MFF package of €1,824.3 billion following a four-day emergency summit aimed at resolving months of deadlocked negotiations. These include the MFF for the period 2021-2027 and a new European Next Generation Instrument (NGEU) for recovery. The NGEU will raise funds by temporarily raising the own resources ceiling to 2.00% of the EU`s gross national income, enabling the Commission to raise €750 billion on the financial markets. The MFF reinforced by the EBU will also be the main instrument for implementing the recovery plan to address the socio-economic consequences of the COVID-19 pandemic.
The agreement paves the way for the opening of negotiations with the European Parliament on the proposal. Yesterday, EU leaders celebrated the end of a historic Council meeting. Following the second longest negotiation in EU history, Member States were able to reach an agreement on the EU`s next generation, the EU`s new financial instrument to support recovery from COVID-19 and the Multiannual Financial Framework (MFF) 2021-27, the EU`s seven-year budget. It`s a good deal. It is a solid agreement. And above all, it is the right agreement for Europe at the moment. This agreement sends a concrete signal that the EU is a force for action. In its conclusions of June 2019, the European Council invited the Presidency to develop the MFF negotiating framework.
On this basis, EU leaders will hold an exchange of views in October with a view to reaching an agreement before the end of the year. Beyond the recovery, however, EU leaders have not shown sufficient ambition. Instead of investing in Europe`s future, in younger generations, in sustainability and innovation, these areas are now facing serious cuts. At a time when young people are already bearing the burden of a new crisis, this budget agreement is a disappointment. Most sectoral programmes that focus directly on youth or have the potential to support the transition to a fairer, socially and environmentally more sustainable Europe will now not be able to achieve their ambitious targets. The Agreement protects financial interests in accordance with the general principles enshrined in the Union Treaties, in particular the values enshrined in Article 2 of the Treaty on European Union. This will ensure that the Council, which represents the Member States, plays a leading role in negotiating the fixed budgetary ceilings of the MFF, both at the highest and maximum levels allowed for projects supported under the MFF 2021-2027. In practice, this allows the Council to define which specific areas will receive the most funding over the seven years of the MFF and will therefore have the highest priority. The resolution concludes by confirming that Parliament will not accept the Council`s political agreement on the MFF 2021-2027 in its current form and “will not approve a fait accompli”. MEPs are also “ready to refuse their approval” of the MFF until a “satisfactory” agreement is reached in the next negotiations between the Parliament and the Council, preferably by the end of October at the latest for a smooth start to the new EU programmes in 2021. The lack of references to the European Solidarity Corps programme in the Council agreement is also very worrying. It will be impossible to “build back better” if we do not invest in opportunities for young people to have a positive impact on their communities through volunteering and skills development while promoting solidarity.
Young people are the most affected by the social and economic impact of COVID-19, as they “give up first” when they lose their jobs and are at a higher risk of poverty. Unfortunately, the budget agreement does not provide young people with the support they need to face these challenges. The distribution of youth employment in the European Social Fund Plus (ESF+) proposed by the Council does not correspond to the increase requested by the European Commission and the European Parliament. While the EU is expected to provide support and opportunities to the next generation of young people after COVID-19, it is not yet clear how much of the €750 billion allocated will be invested in youth. The common objective for the MFF is to present a draft simplified negotiating framework to the June European Council. This would allow an agreement on the EU`s long-term budget to be reached in autumn 2019. Negotiations continued in October and November, with the co-legislators stranded on the rule of law. At the end of October, Parliament presented a so-called revolutionary proposal to bridge the gap between the two sides, but without immediate success. On 5 November, a political agreement was reached on a proposal for a rule of law mechanism to protect the EU budget. On 10th November an informal agreement was reached between the two co-legislators on the financial package comprising the MFF and the Economic Recovery Plan for Europe. On 29 July, a telephone conversation took place between the President of the European Commission, the President of the European Parliament and the President of the rotating President of the Council.
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