52 General Budget 2013 and Multiannual
Financial Framework, 2014-2020
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(34805)
8041/13
COM(13) 183
(b)
(35096)
11295/13
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(c)
(35097)
11298/13
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(d)
(35098)
11307/13
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Draft Amending Budget No. 2 to the General Budget 2013: General statement of revenue: statement of expenditure by section: Section III: Commission
Draft Council Regulation laying down the Multiannual Financial Framework for the years 2014-2020
Draft Interinstitutional Agreement on budgetary discipline, cooperation in budgetary matters and on sound financial management
Draft Council Regulation laying down the multiannual financial framework for the years 2014-2020 and Inter-Institutional Agreement on budgetary discipline, cooperation in budgetary matters and on sound financial management: Draft Declarations
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| Legal base | (a) Articles 314 and 322 TFEU; co-decision; QMV
(b) Article 312 TFEU and Article 106a EURATOM; consent; unanimity
(c) Article 295 TFEU; inter-institutional agreement; QMV
(d) —
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| Basis of consideration | Minister's letters of 11 and 14 July and 20 August 2013
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| Previous Committee Reports | (a) HC 86-xxxix (2012-13), chapter 3 (24 April 2013) and HC 83-iv (2013-14), chapter 2 (5 June 2013)
(b)-(d) HC 83-viii (2013-14), chapter 3 (3 July 2013)
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| Discussion in Council | (a) 4 July 2013
(b)-(d) 27 June 2013 (European Council)
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| Committee's assessment | Politically important
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| Committee's decision | Cleared after debate in European Committee B on 16 July 2013[197]
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Background
52.1 In February the European Council reached agreement on the
Multiannual Financial Framework (MFF) for the period 2014-2020.[198]
Since then there have been negotiations with the European Parliament
to secure its consent to the proposals.
52.2 In March the Commission presented a Draft Amending
Budget (DAB) for the 2013 EU Budget, DAB No. 2/2013, document
(a), concerning a significant increase of payment appropriations
which the Commission claimed was necessary to meet legal obligations
arising from claims left unpaid at the end of 2012, as well as
to absorb pressures which it expected to arise in 2013. It asserted
that the increase was necessary to avoid any abnormal carry-over
into 2014. In proposing an increase for 2013 of €11.2 billion
(£9.6 billion) in payment appropriations, the Commission
did not suggest reprioritisation from elsewhere in the Budget.
Negotiation of this controversial DAB between the Council and
the European Parliament became closely linked to the negotiation
of the MFF.
52.3 In early July we considered the Irish Presidency's
proposals for a new Council Regulation on the MFF, document (b),
the Interinstitutional Agreement (IIA) between the three institutions
on the MFF and budgetary cooperation, document (c), and a set
of accompanying draft declarations, document (c). The draft MFF
Regulation covered the key policies agreed at the February European
Council and the draft IIA covered more technical aspects of the
budget. Four draft joint declarations covered own resources, duration,
and improving effectiveness of public spending in matters subject
to EU action and gender-responsive elements. Two draft declarations
by the Commission covered national management declarations and
review and revision. The documents were to be presented to the
June European Council as the probable outcome of the negotiations
with the European Parliament.
52.4 We recommended all four documents for debate
on the Floor of the House.[199]
In the event they were debated in European Committee B on 16 July.[200]
The Minister's letters
52.5 In his first letter the Financial Secretary
to the Treasury (Greg Clark) says, in relation to the Irish Presidency's
proposals, documents (b)-(d), that:
- the Presidency issued further
versions of the MFF Regulation and accompanying declarations ahead
of the European Council on 27-28 June and the European Parliament
plenary session of 1-4 July;[201]
- a further draft declaration
on the Fund for European Aid to the Most Deprived was also issued;[202]
- the Interinstitutional Agreement, document (c)
is unchanged; and
- none of these documents are final versions.
52.6 The Minister continues that, although the revised
documents are very similar to the earlier versions deposited,
he is writing to update us on the key changes. He says that:
- the main changes to the draft
MFF Regulation are related to the flexibilities in annual payment
and commitment ceiling totals;
- these have been extended from the previous versions
of the documents, but remain within the seven-year commitment
and payment ceilings agreed by the European Council in February;
- this flexibility now also includes an increase
in the amount to be drawn forward to 2014 and 2015 for youth employment
agreed to at the European Council;
- the other notable change in the draft MFF Regulation
is introduction of text asking the institutions to consider the
most suitable duration for the MFF from 2021;
- the declaration on the duration of the MFF after
2021 has now been moved to the MFF Regulation and a Commission
declaration on this point has been included in the package; and
- the new draft declaration on the Fund for European
Aid to the Most Deprived says that Member States "may decide
to increase their allocations spent on this programme by up to
€1 billion on a voluntary basis."
52.7 Reminding us that the MFF package requires the
consent of the European Parliament before it is agreed by the
Council, the Minister says that:
- the European Parliament voted
on a resolution on the MFF on 3 July, giving political support
for this package;
- this vote is not the formal vote on the MFF,
which is not expected until after the summer; and
- he will update us as new texts appear and submit
Explanatory Memoranda on the final set of texts.
52.8 In his third letter, also about the MFF package,
the Minister tells us that:
- the Lithuanian Presidency recently
issued the latest draft of the MFF Regulation and accompanying
declarations, following legal examination and translation;[203]
- there are no substantial changes from the documents
he drew to our attention in his previous letter;
- the latest draft has been sent to the European
Parliament for its consent, after which the Council will formally
vote on all documents;
- the European Parliament is expected to vote formally
in the coming months; and
- he will let us know should that timing change.
52.9 In his second letter, which concerns several
DABs, the Minister first reminds us that:
- at the 14 May ECOFIN Council,
a political agreement was reached on the Presidency's compromise
DAB No. 2/2013 proposal for €7.3 billion (£6.3 billion);
- this was contingent on reaching MFF agreement;
- the UK together with likeminded Member States
opposed any such increase and the Chancellor argued strongly against
it both on and off camera; and
- the Government took this position throughout
negotiations.
52.10 The Minister continues that:
- following the agreement in
the European Council on the MFF package the DAB was voted on at
COREPER on 4 July;
- the UK, along with Denmark, Finland, the Netherlands
and Sweden, voted against the DAB, expressing dissatisfaction
with the Commission's unjustified request for substantial additional
resources; but
- the proposal was accepted by a qualified majority
of Member States and was subsequently agreed as an A-point at
the 9 July ECOFIN Council.
Conclusion
52.11 We are grateful to the Minister for these
updates and look forward to scrutinising the final texts of the
MFF package.
197 Gen Co Debs,
European Committee B, cols. 3-26. Decision to refer for debate
reported on 3 July 2013. Back
198
See the European Council Conclusions: http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ec/135344.pdf. Back
199
See headnote. Back
200
Op cit. Back
201
See http://register.consilium.europa.eu/pdf/en/13/st11/st11655.en13.pdf
and http://register.consilium.europa.eu/pdf/en/13/st11/st11658.en13.pdf.
Back
202
See http://register.consilium.europa.eu/pdf/en/13/st11/st11698.en13.pdf.
Back
203
See http://register.consilium.europa.eu/pdf/en/13/st11/st11791.en13.pdf.
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