EU Member States need €2 trillion to recover after Covid-19
In its resolution on the new EU Multiannual Budget and Recovery Plan, MEPs call for a strong strategy which focuses on the needs of the population and is based on THE EU budget.
The resolution was adopted on Friday by 505 votes to 119, with 69 abstentions.
The Recovery Strategy must be at the heart of the European citizens, emphasize Members, adding that Parliament will be firmly in favour of citizens' interests. The plan must have a strong social dimension, address social and economic inequalities and address the needs of the most affected populations.
Parliament insists that the new “Recovery and Transformation Fund” funding should be EUR 2 trillion and be financed by long-term recovery measures. Funds should be allocated “as loans and mainly as grants and direct payments for capital formation”. They urge the Commission not to use “financial machinations” and questionable multipliers to bid ambitious amounts – in a situation where citizens' confidence in the European Union has been placed on the game.
The plan is based on the priorities of the green course and the digital agenda
The “ambitious recovery package” requested BY MEPs in their in the April resolutionit must be long enough to avoid “the severe and lasting impact of the current crisis”. It must transform our economy by supporting small and medium-sized entrepreneurs, increase “employability and skills to reduce the impact of the crisis on workers, consumers and families”.
They call for investment to be given priority to the green course and the Digital Agenda and calls for a new European Health Programme to be set up.
Recovery funds must be added to the multiannual budget instead of subtracting it
The Recovery Plan should be provided in addition to the next multiannual budget, or the Multiannual Financial Framework (MFF), without prejudice to current and forthcoming EU programmes, by Members. They also insisted that THE MFF should be increased and stresses that Parliament will exercise its right of veto if THE EP's requirements are not met.
The recovery funds should be channelled into programmes within THE EU budget to guarantee democratic oversight and Parliament's participation. They ask Parliament to be involved in the creation, adoption and implementation of the “Recovery Fund” and warns the Commission “not to try to develop a European recovery strategy that would not be consistent with the Community method and intended to use intergovernmental means”.
EU revenue reform is becoming increasingly important
EP Members repeatedly calls identify new sources of “own resources” (EU revenue) so that Member States' direct contributions TO THE EU budget should not be increased for THE MFF and the Recovery and Transformation Fund. As THE EU revenue ceiling is expressed in gross national income (GNI), which is likely to be significantly reduced due to recession, MEPs also call for an “immediate and continuous increase in own resources” ceiling.
A statement
On 27 May, the European Commission is expected to present a proposal for a revised MFF and recovery fund to take account of the health crisis and its consequences.
The current EU multiannual budget expires on 31 December 2020, so THE EU needs a new budget plan for the next seven years. In May 2018, the European Commission presented its initial plan for the next MFF period from 2021 to 2027. The European Parliament adopted its position in November 2018 and re-approved it in October 2019. EU Member States have not yet agreed on their positions.
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