Brussels, 6 July 2012
Commission updates its Multiannual Financial Framework proposal with latest data
The Commission adopted today its amended proposal for the 2014-2020 Multiannual Financial Framework (MFF). The original proposal was presented on 29 June2011; one year later this technical update responds to two needs: the budgetary impact of Croatia's accession to the EU, and the effects of the most recent economic data affecting Member States' allocations under structural funds.
On this basis, the revised proposal estimates an overall ceiling of €1,033 billion (1.08 of EU GNI) in commitments for the 2014-2020 period as opposed to €1,025 billion (1.05% of EU GNI) in the original proposal. In payments, the amended proposal amounts to € 988 billion (1.03% of EU GNI) as opposed to €972 billion originally (1,00% of EU GNI).
The increase expressed in percentage of the EU's GNI largely stems from a lower GNI estimate than the one of June last year, and, to a lesser extent, from the inclusion of Croatia in the multiannual financial framework.
"Today's update does not change anything to the substance of our original proposal; this is a purely mechanical exercise, said EU Commissioner for financial programming and budget Janusz Lewandowski. There have been economic and political developments since we presented our proposal last June, and these have an impact on the figures for the next financial period. It is the Commission's duty to ensure that the final phase of negotiations on the 2014-2020 MFF is based on solid facts and up to date data. We invite the Council and the European Parliament to agree on the MFF by the end of the year in line with the conclusions of the European Council. In the face of the current crisis, the EU needs a timely agreement on the MFF to show its capacity to act decisively in support of growth and jobs and to provide a stable investment horizon for Member States and economic operators until 2020".
The revised overall table
The adjustments in view of Croatia's accession per year and policy
The bulk of increases for Croatia concerns cohesion and agriculture. These amounts were agreed to by all Member States in the Accession treaty signed on 9 December 2011. Increases in other areas where funds are not pre-allocated on a national basis (science and research or education for instance) are based on Croatia's share in EU GDP and population (0.62%). Increases in administration cover requirements in terms of translation/interpretation, legal and programme management expertise resulting from Croatia's membership.
Comparing original and updated proposal (in million euro, all in 2011 prices)
Amounts within the Multiannual Financial Framework are NOT amounts for future EU budgets, they are only ceilings not to be exceeded. EU budgets are adopted annually and are always below the agreed ceilings.
The future Multiannual Financial Framework is more than just about expenditure ceilings – it is about new rules on how best to use the amounts currently negotiated as part of the legislative process held in parallel with the MFF negotiations. Perhaps, even more important, these elements taken together constitute a new tool box to boost economic reforms and fiscal consolidation in Member States.
The revised proposal: