On 8 February the European Council reached agreement on the EU Budget Multiannual Financial Framework for 2014-2020, the MFF. Under the Lisbon Treaty, the consent of the European Parliament is required before the MFF can be adopted by Council. As Presidency, we have had the responsibility for negotiating the text of the MFF Regulation and the Inter-Institutional Agreement between the Council, the Commission and the Parliament. This task has been a challenging one, and the outcome remains critical to our capacity across the EU to begin to address the key challenges of creating jobs and growth. It is also an urgent task. Since February we have been engaged in intensive consultations. Informal discussions with the Parliament began soon after the February European Council, leading to several rounds of formal Trilogues between Presidency, Parliament and Commission. These negotiations were advanced at political level through detailed consultations on 13 May, 28 May, 4 June, 11 June and finally on 18-19 June. I led the Presidency negotiating team and MEP Alain Lamassoure has the lead for the Parliament’s team. In each case, the negotiators kept their respective institutions appraised of progress. From an early stage in discussions, it was clear that for the European Parliament, four main issues were critical in securing their consent: Flexibility, a Mid-term Review, Own Resources and Unity of the Budget.
Throughout the iterative process we worked through our respective positions on each of those core concerns. We made substantial progress.
On 19 June Mr Lamassoure and I concluded negotiations and agreed a core package, comprising the MFF Regulation and Inter-Institutional Agreement (IIA). We both agreed that we would recommend that package to our respective institutions. We are now in the process of discussing the elements of the package both in the Council, and in the European Parliament.
I remain hopeful that the package will offer the basis for the final outcome on this important file. I am also optimistic that this process will conclude under the Irish Presidency.
An additional but important aspect of concluding the MFF, relates to the Amending Budget for 2013. The linkage between the MFF and the 2013 Draft Amending Budget 2 (DAB 2) was established by the Parliament, and was recognised in the MFF negotiations as a political reality. The issue, which is one of significant sensitivity, was addressed at a summit meeting of the Presidents of the Parliament, Commission and the rotating Presidency on 6 May.
At the 14 May ECOFIN Council, it was agreed that of the requested €11.2bn, the Council would approve a first tranche of €7.3bn, subject to agreement on the MFF. This issue will have to be addressed before final adoption of the MFF, and I am confident that we can find a workable arrangement.
Both Council and Parliament are now considering the outcome of the MFF negotiations. That outcome provides extensive flexibility in payment appropriations for the first time, as well as improved arrangements for the special flexibility instruments and a provision for the limited carryover of commitment appropriations. In addition, there will be a meaningful mid-term review, provisions on the unity of the budget, and a detailed roadmap for future work on reform of Own Resources.
All of this together represents a significant step forward. The agreement of the Parliament and Council would allow us now to move ahead, and to rapidly deliver the spending and programmes that our citizens need and expect: it is about real money for real people and real jobs at a time when they have never been more needed in Europe, particularly by the very many affected by the crisis of youth unemployment.
The MFF deal will put in place a robust €960 billion budget for investment that will enable the European economy to grow, to create jobs and to begin to address youth employment. It is a matter of some urgency across Europe that this major investment is implemented without delay.
Ireland will benefit in particular from a strong and well-funded CAP, and from increased funding for competitiveness and jobs, including from the special allocation of €6 billion for youth unemployment which we have supported being frontloaded starting in 2014. We will also benefit from a number of specific and tailored resource instruments, including a special allocation of €100 million for rural development, and a special allocation of €100m for the Border, Midland and Western region. I am especially satisfied to have been instrumental in ensuring a special allocation of €150m for the PEACE programme.
I now look forward to moving beyond the detailed negotiations, and to addressing the major political challenge we share as politicians, whether in Council or Parliament: to ensure that we use every euro of EU resources to address the impact of the crisis and the blight of unemployment across our European family. We have no time to lose.
