„The budget, the clean-up fund, new revenue and the rule of law are a package for us,“ said Siegfried Mursan, senior budget official. On the rest of the process looms the threat of Hungarian Prime Minister Viktor Orban to block both the long-term budget and the collection fund through a new mechanism linking EU funding to respect for the rule of law. Some officials say Orbén is bluffing, but it is too early to know whether he will resign. Earlier this week, as negotiations on the EU budget broke down, a spokesman tweeted a GIF from a Harry Potter film and begged for patience. Months of battle ended with a 2021-2027 budget agreement. It will open the door to green investments, but also to coronavirus funds. However, ratification by national parliaments is not yet complete. In the absence of agreement in the Council on the EU`s long-term budget (MFF, multi-year financial framework 2021-2027), the two parts of the EU budgetary authority, Parliament and the Council, have not formalised their agreement. Once the MFF is adopted, the Commission will propose the content of the agreement as the second draft budget.
New reinforcements for 2021 reflect the increases in some important EU programmes that Parliament received in the agreement with the Council on the next EU Long-Term Budget (MFF) 2021-2027. „An agreement for Europe – the negotiators of the Council and the European Parliament reach a political agreement on the EU`s fiscal stimulus and recovery plan,“ Sebastian Fischer, spokesman for the German Presidency of the Council of the EU, said on Twitter. Poland, in particular, is one of the main direct beneficiaries of EU subsidies to farmers, which are the electoral base of the ruling piS nationalist party. If Warsaw and Budapest set the next budget, subsidies to farmers will cease. After four months of intense negotiations, the European Parliament and Member States agreed on Tuesday on the details of a budget of 1 trillion euros ($1.3 trillion) for the period 2021-2027. The agreement came after a struggle for spending priorities agreed at a marathon summit in July. The European Parliament as a whole has yet to approve the seven-year budget and the Council must sign the budget unanimously. The Council will also have to approve unanimously – and national parliaments must ratify the so-called own resources decision – a legal measure that is a precondition for the bloc to start borrowing money for the new collection fund. One of Parliament`s main requirements was a legally binding timetable for the introduction of new sources of revenue for the bloc`s coffers to ensure that the cost of borrowing for the stimulus fund does not enter into budgetary programmes.
The Multi-Year Financial Framework (MFF) sets the maximum amount the EU can spend on its political priorities over a seven-year period, or the amount of investment the EU wants to invest in certain areas. The EU`s annual budget is adopted annually in accordance with the requirements of the multi-year financial framework. „Today`s agreement will strengthen specific programmes within the framework of the long-term budget for the period 2021-2027 (including Horizon Europe, Erasmus, EU4Health),“ said Commissioner Johannes Hahn, who has been committed to facilitating the agreement since the beginning of his mandate.