S&D Budget Newsletter - November 2017

08/11/2017
EU budget crisis threatens Europe’s interests” say S&D Euro MPs

S&D BUDGET NEWSLETTER NOVEMBER 2017

1. Editorial

The European budget: challenges and opportunities to make the EU stronger, fairer and more efficient
The vote on the EU Budget, held on 25 October 2017 in Strasbourg, reversed all the cuts proposed by the Council to the Draft EU Budget 2018. Although the work is difficult, considering the few available resources, MEPs have still been able to meet the challenges that Europe faces today: youth unemployment, migration flows, security, common defense, as well as environmental and agricultural issues. To fight the rising youth unemployment, European Parliament Deputies added € 200 million to the "Youth Guarantee" program, increasing the total investment to € 600 million, in order to support young people who completed their studies and want to enter the labor and training market. Parliament rejected the Council's 750 million euro cuts in the area of "Growth and Employment", considering that these cuts could have a serious and major impact on job creation and growth, as in the case of Horizon 2020 or the CEF. Therefore, the European Parliament has decided to strengthen and stimulate programs that are fundamental to European growth and its welfare, education and culture, as in the case of Erasmus+.  However, the issue of migration has revealed that this is a challenge that should remain a priority for Europe and Europeans, because the funds allocated to this area are insufficient and unsuitable to face this issue. On this matter, MEPs tried to give a concrete answer to this phenomenon, moving away from the logic of the crisis, by strengthening the Commission's draft budget for security-related agencies, including Europol, the Asylum Fund, migration and integration and the European Asylum Office. With regard to foreign policy, considering the worrying situation in terms of democracy, rule of law and human rights, European Deputies have reduced Turkey's pre-accession funds of 50 million euros. After the plenary vote, the 21-day-conciliation period with the Council started and which should enable the two institutions to reach an agreement in time, , which will be voted by Parliament and signed by the President of the European Parliament, Antonio Tajani, on 30 November.

Daniele VIOTTI

Member of the European Parliament
S&D Shadow Rapporteur on the General Budget 2018


2. Contributions from MEPs on key issues

2.1 Financial Future of the Union: the mother of all battles

By adopting my resolution on the future financing of the Union by a large majority of 442 votes against 189, the European Parliament has shown its commitment to build an ambitious financial framework post-2020 and to fight for it during the negotiations with the Commission and the Council.
The resolution voices several alerts and red lines and argues for a true budgetary ambition for the European Union:

  • to increase the budgetary capacities of the Union by increasing the budgetary ceilings (currently frozen at 1% of the European GDP) to exceed 1.23%;
  • to integrate real own resources into the revenue structure of the European Union, in order to alleviate the national budgets, as well as to leave behind the logic of the “juste retour” and the infernal spiral of national contributions;
  • to multiply the flexibility mechanisms in order to allow the budget to adapt to unforeseen circumstances;
  • to structure the Multiannual Financial Framework in such a way that it reflects the political priorities of the Union (development and sustainable growth, solidarity between the territories and between Europeans, security and defence, etc.), in order to be more understandable to European citizens;
  • to reintegrate Trust Funds and external financial instruments to respect the principle of budgetary unity and a better democratic control;
  • to adjust the duration of the MFF to the political cycles of the Parliament and the Commission.

The reinforcement of the Union’s budgetary resources is necessary in order to meet Europe’s challenges. Otherwise, this would result in either sacrificing certain policies, or in a dispersal, which would obliterate the programs’ efficiency.
This budgetary battle, which is being fought by the S&D Group with utmost determination, is the mother of all European battles. It has only just begun but the Council is already trying to liberate itself from the democratic debate with the Parliament by postponing the outcome of the negotiations on the future MFF to the end of 2019, when Parliament and Commission will be in the middle of the renewal of mandates. But the Parliament will not let itself be excluded by these negotiations, which are the key to the Union’s future.

Isabelle THOMAS
Member of the European Parliament
Vice President of the
Progressive Alliance of Socialists & Democrats in the European Parliament
Standing co-rapporteur on the revision of the Multiannual Financial Framework 2014-2020

Version FR : Avenir financier de l’Union : la mère de toutes les batailles

En adoptant ma résolution sur l’avenir financier de l’Union à une large majorité de 442 voix contre 189, le Parlement a montré sa détermination à construire un cadre financier ambitieux pour l’après 2020, dans les négociations avec la Commission puis le Conseil.
La résolution formule plusieurs alertes et lignes rouges et plaide pour une véritable ambition budgétaire pour l’Union :

  • Augmenter les capacités budgétaires de l’Union en révisant à la hausse les plafonds du budget (actuellement bloqués à 1% du PIB européen), pour dépasser 1,23% ;
  • Intégrer de vraies ressources propres dans la structure des recettes du budget européen afin, d’une part de soulager les budgets nationaux de leur chèque européen, et d’autre part de  sortir de la logique du « juste retour » et de la spirale infernale des contributions nationales ;
  • Multiplier les mécanismes de flexibilité pour adapter le budget aux événements et aux imprévus ;
  • Structurer le cadre financier de sorte qu’il reflète les priorités politiques de l’Union (Développement et croissance durable, solidarité entre les territoires et entre les européens, sécurités et Défense..) pour une meilleure lisibilité par les citoyens ;
  • Réintégrer les fonds fiduciaires et les instruments financiers externes au nom du principe d’unité du budget et d’un meilleur contrôle démocratique ;
  • Aligner la durée du CFP sur les cycles politiques du Parlement et de la Commission.

Le renforcement des moyens budgétaire de l’Union est nécessaire pour répondre aux défis européens. Dans le cas inverse, cela aboutirait soit à sacrifier certaines politiques, soit à du saupoudrage qui anéantirait l’efficacité des programmes.
Cette bataille budgétaire que mène avec détermination le groupe S&D est la mère de tous les combats européens. Elle commence à peine que déjà le Conseil tente de s ‘émanciper du débat démocratique avec le Parlement en reportant l’issue de la négociation du futur CFP à fin 2019, alors que le Parlement la Commission seront en plein renouvellement. Mais le Parlement ne se laissera pas exclure de cette négociation, clef de l’avenir de l’Union.

Isabelle THOMAS
Députée européenne
Vice-présidente des Socialistes et Démocrates au Parlement européen
Rapporteure permanente sur le Cadre financier pluriannuel

2.2 The budgetary consequences of 'Brexit' on the Common Agricultural Policy (CAP)

Brexit may lead to a shortfall in the EU budget: despite the rebate obtained by Margaret Thatcher in 1984, the UK remained a decisive net contributor.
There is a real risk that consecutive budgetary reductions resulting from Brexit will amputate CAP appropriations, and it is necessary to anticipate this risk for such an emblematic EU policy.
I strongly believe we need to reinforce the means dedicated to our agriculture to cope with the multiple health and climate hazards and price volatility faced by our farmers and we need to preserve a good rural environment. Agriculture is of course the food of our European citizens - but it is also the development of our rural areas, the landscape maintenance and the preservation of our biodiversity and ecosystems. There would be a serious danger for social and territorial cohesion to neglect all aspects of agricultural activity. The committee on budgets must be aware of it and draft proposals to the Commission in order to foster an integrated agriculture and a dynamic rurality in Europe!

Jean-Paul DENANOT
Member of the European Parliament
Substitute Member in the Committee on Budgets and Member of the AGRI Committee

Version FR: Les conséquences budgétaires du 'Brexit' sur la Politique Agricole Commune (PAC)

Le Brexit va entrainer un manque à gagner pour le budget européen : malgré le rabais britannique, le Royaume-Uni restait un contributeur net déterminant.
Il y a un risque réel de voir les réductions budgétaires consécutives au Brexit venir amputer les crédits de la PAC, et il faut d’ores et déjà anticiper ce risque pour la politique emblématique de l’Union européenne.
Je crois profondément qu’il nous faut renforcer les moyens destinés à notre agriculture pour faire face à tous les aléas sanitaires, climatiques, de volatilité des prix que subissent nos agriculteurs, et conserver un environnement rural de qualité. L’agriculture, c’est bien entendu la nourriture des citoyens européens - c’est aussi l’entretien des paysages et l’existence d’un monde rural vivant.
Il y aurait grave danger pour la cohésion sociale de négliger l’ensemble des aspects de l’activité agricole. La commission des budgets doit en avoir conscience et faire des propositions à la Commission pour favoriser une agriculture intégrée qui nous permettra de conserver nos modes de vie.

Jean-Paul Denanot
Député européen
Membre suppléant de la Commission Budget et Membre de la Commission AGRI


3. Key Dates


Key Dates November till December Committee on Budgets


4. Inside the Committee on Budgets

Isabelle Thomas’ speech during the Plenary debate on the European Commission's working programme for 2018

https://www.youtube.com/watch?v=6YHoeU9q9Uc

5. Recent Tweets

Tweet de Isabelle Thomas

Tweet de Eider Gardiazabal

 


6. Infographic

Infographic on the EU Budget 2018