EU: Budget Agreement – First ‘green light’ for Recovery Fund



The negotiators of the European Parliament and the Member States of the European Union have agreed on the details of the EU budget for 2021-2027, taking an important step towards activating the 1.8 trillion recovery package. “An agreement on Europe. “Council and European Parliament negotiators are reaching a political agreement on the EU budget and recovery package,” German Presidency spokesman Sebastian Fischer said on Twitter, adding that the agreement still needed formal approval.‼ ️ # Breaking: A #deal for Europe – Council & EP negotiators reach political agreement on the #EUbudget & recovery package.Main elements: Targeted reinforcement of 🇪🇺 programs while respecting #EUCO conclusions.Now: @ Europarl_EN + @ EUCouncil need to give final approval. #WhiteSmoke pic.twitter.com/gDQQII30oj— Sebastian Fischer (@SFischer_EU) November 10, 2020The agreement, which has been under negotiation for about four months, makes it clear that governments can only get money in the EU if they uphold the rule of law. – a condition opposed by EU-controlled Poland and Hungary for undermining the independence of the judiciary. At the same time, it raises EU budget expenditure to 1.1 trillion. health, education and safety, up € 16 billion from the EU leaders’ original agreement in July. It also introduces new, special revenue for EU funds to repay the € 750 billion “By 2026, we will have a source of new revenue that should be sufficient to cover the cost of the Recovery Fund debt, in order to help reimburse the debt owed by the COVID-19.” do not cut funds and programs, “said one of the parliamentary negotiators, Jose Manuel Fernandes. In the coming weeks, talks between EU lawmakers and governments will continue on the details of the € 750 billion loan, of which € 67 billion , 5 billion will be distributed among governments as loans and grants under their national recovery plans which will include various plans and reforms. and the Committee on Economic and Monetary Affairs approved the objectives, funding and rules for funding from the Recovery and Resilience Facility by 73 votes to 11, with 15 abstentions. MEPs also approved the negotiating mandate to start talks with EU governments by 84 votes to 11, with 4 abstentions. They want the mandate to be announced at the next plenary session on 11-13 November, so that the talks can start without delay. Criteria for funding MEPs agreed that the mechanism should be available only to Member States committed to respect for the rule of law and the fundamental values ​​of the European Union. National recovery and resilience plans will be eligible for funding if they are in line with six EU priorities: green transition, digital transformation, economic cohesion and competitiveness, social and territorial cohesion, institutional crisis and crisis preparedness, as well as EU policies for the next generation, which include the European Skills Agenda, the Youth Guarantee and the Children Guarantee. According to the positions adopted, any such plan should utilize at least 40% of its budget for climate and biodiversity and at least 20% for digital actions. These projects should bring about long-term improvement in EU countries both socially and economically, as well as include comprehensive reform packages and sound investment measures. MEPs call for € 672.5 billion in grants and loans to be used to fund national measures aimed at mitigating the economic and social impact of the pandemic, starting on 1 February 2020. They seek funding to be available for four years (instead of three, as proposed by the Council) and EU governments can request up to 20% pre-financing for recovery and resilience plans, instead of the proposed 10%, so that they can react faster and do more. Both Parliamentary committees requested the European Commission (as the committee responsible) accountability to the EP), including by submitting a bi-annual report outlining how the objectives and milestones have been achieved, as well as the amounts paid in each EU country. They also stressed that the beneficiaries should ensure that the expenditure under the mechanism is visible to the public, clearly identifying the supported projects as the “European Union Recovery Initiative”. Follow it on Google News and find out all the news first See all the latest News from Greece and World, in



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