2023/0201R(APP) | [ParlTrack]

Motion for a resolution
Paragraph 1

1. Welcomes the fact that, following its review of the 2021-2027 multiannual financial framework (MFF), the Commission has drawn the same conclusion as Parliament did in December 2022, namely that the MFF has been overtaken by events in a world that has changed beyond recognition since it was agreed in 2020, that budgetary flexibility has been depleted and more is necessary in order to respond to unforeseen circumstances, that the MFF contains structural problems laid bare by ~~economic development~~the multiple crisis and their social and economic consequences and that, as a result, an urgent revision of the MFF regulation and its annex is essential;

Amendment 10 #

Motion for a resolution
Paragraph 2

2. Underlines the fact that the revision must focus on addressing the manifold consequences of Russia’s war of aggression against Ukraine, on safeguarding the Union’s strategic autonomy and sovereignty and on endowing the Union with adequate flexibility to respond to crises; welcomes, therefore, the Commission’s proposal for a targeted revision as a first step in the right direction to ensure that the MFF can better address those challenges; emphasises that for some member states these challenges are of a direct and serious nature, caused inter alia by the influx of refugees, the aggravated security situation with imminent hybrid threats in particular, the profound changes in trade flows including important disruptions of local agricultural markets; expects the Union to assess and address these needs appropriately;

Amendment 100 #

Motion for a resolution
Paragraph 41

41. Underlines that budgetary flexibility has proven that it enables resources to be targeted where they are needed and the Union to respond to unforeseen events and to adjust its spending priorities in light of evolving political or, economic or social needs; insists, therefore, that the Flexibility Instrument be increased by EUR 3 billion in current prices over and above the Commission proposal for the MFF period;

Amendment 101 #

Motion for a resolution
Paragraph 42

42. Notes that demands on the SEAR are unlikely to lessen; considers, therefore, that reinforcing the SEAR is crucial to enable the Union to act in emergency situations caused by major natural disasters or public health crises in Member States and accession countries and also to support non-EU countries suffering from conflicts, refugee crises or natural disasters; insists, therefore, that the SEAR be increased by EUR 2 billion in current prices over and above the Commission proposal for the MFF period; regrets, nonetheless, the decision to merge the Emergency Aid Reserve (EAR) and the EUSF ( European Union Solidarity Fund) in the current MFF, which has led to serious shortcomings and recalls its standing pledge for the SEAR to be split back into two strands – the EAR and the EUSF;

Amendment 102 #

Motion for a resolution
Paragraph 42

42. Notes that demands on the SEAR are unlikely to lessen; considers, therefore, that reinforcing the SEAR is crucial to enable the Union to act in emergency situations caused by major natural disasters or public health crises in Member States and accession countries and also to support non-EU countries suffering from conflicts, refugee crises or natural disasters; insists the SEAR remains additional to the humanitarian aid budget line in Heading 6; calls for the SEAR to be mobilised for sudden onset crises outside the EU throughout the whole financial year, in line with its initial purpose and the relevant regulations; insists, therefore, that the SEAR be increased by EUR 2 billion in current prices over and above the Commission proposal for the MFF period;

Amendment 103 #

Motion for a resolution
Paragraph 42a (new)

42a. Regrets that the proposed revision does not reflect the fact that the current crises have exacerbated and will further exacerbate the current deteriorating socio-economic situation for the most vulnerable people in the Union, especially children in or at risk of poverty, and will have long-lasting consequences; further stresses that the proposed revision does not reflect the Union’s ambition to step up its efforts to fight the alarming child poverty rates and to contribute to the eradication of child poverty via the recently created European Child Guarantee; insists therefore that the Council and the Commission take into account the Parliament’s call for an urgent increase in funding for the European Child Guarantee with a dedicated budget of at least EUR 20 billion for the period 2021-2027 by making this dedicated budget part of the revised MFF and reinforced ESF+;

Amendment 104 #

Motion for a resolution
Paragraph 43 point i

(i) increase the ceiling of (i) increase the ceiling of Heading 1 by EUR 2 billion in Heading 1 by EUR 4.75 billion current prices over and above in current prices over and the Commission proposal; above the Commission proposal;

Amendment 105 #

Motion for a resolution
Paragraph 43 point ii

(ii) increase the ceiling of Heading 4 by EUR 1 billion in Heading 4 by EUR 0.5 billion current prices over and above in current prices over and the Commission proposal and above the Commission apply the increase to the proposal and apply the increase heading from 2024; to the heading from 2024;

Amendment 106 #

Motion for a resolution
Paragraph 43 point iii

~~(iii) increase the ceiling of~~Deleted Heading 5 by EUR 1 billion in current prices over and above the Commission proposal;

Amendment 107 #

Motion for a resolution
Paragraph 43 point iii

(iii) increase the ceiling of Heading 5 by EUR 12 billion in current prices over and above the Commission proposal;

Amendment 108 #

Motion for a resolution
Paragraph 43 point iii

(iii) increase the ceiling of (iii) increase the ceiling of Heading 5 by EUR 1 billion in current Heading 5 by EUR 2 billion in current prices over and above the prices over and above the Commission Commission proposal; proposal;

Amendment 109 #

Motion for a resolution
Paragraph 43 point v

(v) increase the Flexibility (v) increase the Flexibility Instrument by EUR 3 billion in Instrument by EUR current prices over and above 3.25 billion in current prices the Commission proposal; over and above the Commission proposal;

Amendment 11 #

Motion for a resolution
Paragraph 3

Amendment 110 #

Motion for a resolution
Paragraph 43 point vi

(vi) increase the Solidarity and Emergency Aid Reserve by Emergency Aid Reserve by EUR 2 billion in current prices EUR 3 billion in current prices over and above the over and above the Commission proposal; Commission proposal;

Amendment 111 #

Motion for a resolution
Paragraph 43, point vii

(vii) provide that the EURI Instrument, Instrument, established as a established as a special instrument special instrument over and over and above the MFF ceilings, above the MFF ceilings, cover cover all EURI repayment costs, all EURI repayment costs; without any downward revision of the programmed amount under Heading 2b;

Amendment 112 #

Motion for a resolution
Paragraph 43 viia (new)

(vii a) delete the annual cap in payment appropriations for recourse to the Single Margin Instrument;

Amendment 12 #

Motion for a resolution
Paragraph 3

3. Considers that the proposed revision targets only some of the most pressing areas of concern in the existing framework; welcomes the fact that, in line with Parliament’s position, the proposal for revision does not lead to any downward revision of the pre-allocated national envelopes;

Amendment 13 #

3. ~~Considers~~Is concerned that the proposed revision targets only some of the most pressing areas of concern in the existing framework; welcomes the fact that, in line with Parliament’s position, the proposal for revision does not lead to any downward revision of the pre-allocated national envelopes;

Amendment 14 #

Motion for a resolution
Paragraph 3

3. Considers that the proposed revision targets only the most pressing areas of concern in the existing framework; welcomes the fact that, in line with Parliament’s position, the proposal for revision does not lead to any downward revision of the pre-allocated national envelopes; emphasises that the agreement on the MFF for 2021-2027 and on the cohesion policy package was adopted late, and that coupled with the COVID-19 crisis this led to a slow start to the programming process and disruption to projects, but not because of the policy itself; calls on the Commission to ramp up administrative simplification efforts; underlines that the delayed start does not in any way call into question the pivotal role and added value of cohesion policy as an essential Union investment policy and convergence instrument;

Amendment 15 #

Motion for a resolution
Paragraph 4

4. Recalls that, unlike in national budgets, where inflation affects the nominal value of both revenue and expenditure, the MFF spending ceilings are adjusted on the basis of a 2 % deflator applied to 2018 prices, whereas the own resources ceiling adjusts to inflation; underlines, therefore, that, as a result of unexpectedly high inflation, revenue called from Member States for MFF spending has decreased as a percentage of gross national income (GNI); notes, furthermore, that rebates for the five beneficiary Member States are inflation-linked~~; regrets that, according to the Commission~~ and have also therefore increased at a higher rate than the MFF ceilings; calls for the rebates to use the 2% deflator also on the basies of the 2023 amount; regrets that, inflation ~~may~~will reduce the real-terms value of the MFF by at least EUR 74 billion over the seven- year period and will have a particularly detrimental effect on programmes directly addressing people, like Erasmus or ESF+ in a context of growing poverty across the Union;

Amendment 16 #

Motion for a resolution
Paragraph 4

4. Recalls that, unlike in national budgets, where inflation affects the nominal value of both revenue and expenditure, the MFF spending ceilings are adjusted on the basis of a 2 % deflator applied to 2018 prices, whereas the own resources ceiling adjusts to inflation; underlines, therefore, that, as a result of unexpectedly high inflation, revenue called from Member States for MFF spending has decreased as a percentage of gross national income (GNI); notes, furthermore, that rebates for the five beneficiary Member States are inflation-linked; regrets that, according to the Commission, inflation may reduce the real-terms value of the MFF by EUR 74 billion over the seven- year period; underlines, in particular, the negative consequences of inflation for smaller and younger farmers, in reducing the real-terms value of CAP direct payments and the difficulties to invest under the rural development fund;

Amendment 17 #

Motion for a resolution
Paragraph 4

4. Recalls that, unlike in national budgets, where inflation affects the nominal value of both revenue and expenditure, the MFF spending ceilings are adjusted on the basis of a 2 % deflator applied to 2018 prices, whereas the own resources ceiling adjusts to inflation; underlines, therefore, that, as a result of unexpectedly high inflation, revenue called from Member States for MFF spending has decreased as a percentage of gross national income (GNI); notes, furthermore, that rebates for the five beneficiary Member States are inflation-linked; regrets that, according to the Commission, inflation may reduce the real-terms value of the MFF by EUR 74 billion over the seven- year period; calls on the Commission to replace the 2% deflator by a deflating mechanism in line with actual inflation in the European Union;

Amendment 18 #

Motion for a resolution
Paragraph 4

4. Recalls that, unlike in national budgets, where inflation affects the nominal value of both revenue and expenditure, the MFF spending ceilings are adjusted on the basis of a 2 % deflator applied to 2018 prices, whereas the own resources ceiling adjusts to inflation; ~~underlines, therefore~~is deeply concerned that, according to the Commission, inflation may reduce the value of the MFF in real terms by EUR 74 billion over the seven-year period; underlines, however, that, as a result of unexpectedly high inflation, revenue called from Member States for MFF spending has decreased as a percentage of gross national income (GNI); notes, furthermore, that rebates for the five beneficiary Member States are inflation-linked~~; regrets~~ and, thatus, a~~ccording to the Commission, inflation may reduce the real-terms value of the MFF by EUR 74 billion over the seven- year period;~~ re increasing the unfair burden on the 22 other Member States covering the related shortfall; recalls its long-standing position that rebates and other correction mechanisms should be abolished;

Amendment 19 #

Motion for a resolution
Paragraph 5

5. Stresses that, in addition to reducing the real-terms value of the MFF, inflation has also triggered a substantial increase in interest rates, driving up EU borrowing costs, in ~~particular in relation to the repayment of~~cluding also the European Union Recovery Instrument (EURI) debt, and therefore further squeezing the budget;

Amendment 2 #

Motion for a resolution
Paragraph 1

1. ~~Welcom~~Notes the fact that, following its review of the 2021-2027 multiannual financial framework (MFF), the Commission has drawn the same conclusion as Parliament did in December 2022, namely that the MFF has been overtaken by events in a world that has changed beyond recognition since it was agreed in 2020, that budgetary flexibility has been depleted and more isavings are necessary in order to respond to unforeseen circumstances, that the MFF contains structural problems laid bare by economic developments and that, as a result, an urgent ~~revision of the MFF regulation and its annex~~need for additional savings is essential;

Amendment 20 #

Motion for a resolution
Paragraph 6

6. Highlights that, even taking account of the Commission’s proposal to revise the MFF, total commitment appropriations would amount to only 1.03 % of GNI and total payment appropriations would amount to only 1.02 % of GNI; recalls that, originally, payment appropriations in the current MFF were planned to amount to 1.10 % of GNI; stresses that despite the reinforcements proposed by the Commission ~~are not projected to cover the impact of inflation~~the GNI share of the revised MFF will be 0.7 percentage point lower including two new programmes and without mitigating the impact of inflation and the cost of living crisis even in the most affected programmes;

Amendment 21 #

Motion for a resolution
Paragraph 6

6. ~~Highligh~~Regrets that, even taking account of the Commission’s proposal to revise the MFF, total commitment appropriations would amount to only 1.03 % of GNI and total payment appropriations would amount to only 1.02 % of GNI; recalls that, originally, payment appropriations in the current MFF were planned to amount to 1.10 % of GNI~~; stresse~~, a percentage already too low; regrets that the reinforcements proposed by the Commission are not projected to cover the impact of inflation;

Amendment 22 #

Motion for a resolution
Paragraph 7

7. Notes the Commission’s assessment that the proposed revision will require an increase in the ceiling for payment appropriations in 2026 and 2027; stresses that the Union’s credibility depends on ensuring that there are adequate payment appropriations to cover commitment appropriations; ~~calls on the Commission to monitor closely budget implementat~~underlines the risk of a payments backlog in the later years of the MFF periond and ~~propose any necessary remedial action to avoid a payments backlog in the later years of the MFF period~~for the subsequent MFF; insists, therefore, on the need to scrap the annual cap in payment appropriations for recourse to the Single Margin Instrument in order to mitigate this risk;

Amendment 23 #

Motion for a resolution
Paragraph 7a (new)

7a. Reiterates its call on the Commission to ensure as a matter of urgency that suspended EU funds reach citizens, businesses, regional and local authorities, non-governmental organisations and any other relevant stakeholders if the government does not cooperate on the deficiencies regarding the rule of law in line with the obligation is has in the implementation of the Rule of Law Conditionality Regulation;

Amendment 24 #

Motion for a resolution
Paragraph 7a (new)

7a. Reminds that an increase of payment appropriations ceilings does not automatically correlate with better absorption capacity of the EU Budget; points out, in this regard, that the amount of outstanding commitments (committed amounts but not yet paid) attained record 452,2 billion EUR at the end of 2022;

Amendment 25 #

Motion for a resolution
Paragraph 7a (new)

7a. Raises concern over 45 billion EUR gap between commitments (183 billion EUR) and payments (137 billion EUR) appropriations at annual level, testifying that real payment needs are considerably lower than so far forecasted estimations; questions therefore the rationale behind the revision of the MFF;

Amendment 26 #

Motion for a resolution
Paragraph 7a (new)

7a. Highlights the importance of addressing the needs of the transport sector for achieving the policy objectives and especially the crucial role of the CEF in the completion of the trans-European transport network (TEN-T); stresses that the budget of CEF-T has been mostly committed by now, which shows the utility and added value of the programme; urges therefore a prompt reallocation of funds and eventually an increase of the Heading 1 ceiling to meet all CEF existing and new policy objectives;

Amendment 27 #

Motion for a resolution
Paragraph 8

8. Re~~affirms the importance of the horizontal principles concerning~~calls that the targets related to climate, and biodiversity a~~nd gender equality that~~s well as the obligation to respect do no significant harm and the promotion of gender equality are laid down in the IIA; reminds the Commission of its obligation under~~pin~~ the ~~MFF~~IIA and ~~all related EU policies~~insists that these provisions must also underpin the updated MFF; calls on the Commission to take concrete action to ensure that the agreed targets and policy objectives are met;

Amendment 28 #

Motion for a resolution
Paragraph 8

8. Reaffirms the importance of the horizontal principles concerning climate, biodiversity and gender equality that underpin the MFF and all related EU policies; calls on the Commission to take concrete action to ensure that the agreed targets are met; in view of the post-2027 MFF, calls on the Commission to start working on a holistic mainstreaming approach in line with the 2030 Agenda for Sustainable Development;

Amendment 29 #

Motion for a resolution
Paragraph 8

8. Reaffirms the importance of the horizontal principles ~~concerning climate, biodiversity and gender equality~~ that underpin the MFF and all related EU policies; calls on the Commission to take concrete action to ensure that the agreed targets are met;

Amendment 3 #

Motion for a resolution
Paragraph 1

1. Welcomes the fact that, following its review of the 2021-2027 multiannual financial framework (MFF), the Commission has finally drawn the same conclusion as Parliament did in December 2022, namely that the MFF has been overtaken by events in a world that has changed beyond recognition since it was agreed in 2020, that budgetary flexibility has been depleted and much more is necessary in order to respond to unforeseen circumstances, that the MFF contains structural problems laid bare by economic and social developments and that, as a result, an urgent revision of the MFF regulation and its annex is essential;

Amendment 30 #

Motion for a resolution
Paragraph 8

Amendment 31 #

Motion for a resolution
Paragraph 8a (new)

8a. Calls on the Commission to strengthen the institutional framework for supporting gender budgeting, and to implement a gender budgeting analysis as part of the mid-term review of the 2021- 2027 Multiannual Financial Framework; highlights the need to systematically collect, analyse and report sex- disaggregated data for EU programmes, and to develop a system using gender- based indicators for tracking funds allocated to support gender equality, in accordance with the data protection rules in force;

Amendment 32 #

Motion for a resolution
Paragraph 9

9. ~~Recalls that spending under Heading 7 should be set at~~Supports the Commission’s proposal to increase Heading 7 to a level that guarantees that the EU has an effective and efficient administration; points out that a sufficient administration is necessary in order to deliver on the Union’s policy objectives;

Amendment 33 #

Motion for a resolution
Paragraph 9

9. Recalls that spending under Heading 7 should be set at a level that guarantees that the EU has an effective and efficient administration, along with human resources optimization;

Amendment 34 #

Motion for a resolution
Paragraph 9

~~9. Recalls that spending under Heading 7 should be set at a level that guarantees that the EU has an effective and efficient administration;~~Delete

Amendment 35 #

Motion for a resolution
Paragraph 9a (new)

9a. Highlights the need to streamline administrative procedures, rationalize expenditures and enhancing transparency and accountability in EU spending to ensure the funding for new priorities and challenges;

Amendment 36 #

Motion for a resolution
Paragraph 10a (new)

10a. Reminds that a revised version of the MFF will concern the budgetary period of 2024-2027, which clearly overlaps with the introduction of new own resources promising to bring up to 17 billion EUR into the EU budget; questions, in this regard as well, the necessity of the revision of the MFF;

Amendment 37 #

Motion for a resolution
Paragraph 11

11. Reiterates its long-standing demand that all budgetary instruments covering spending at Union level be fully incorporated into the budget, thereby ensuring transparency, full democratic control and protection of the Union’s financial interests; ~~insists that the integration of such instruments into the EU budget must not result in a reduction of financing for other EU policies and programmes;~~

Amendment 38 #

Motion for a resolution
Paragraph 11

11. Reiterates its long-standing demand that all budgetary instruments covering spending at Union level be fully incorporated into the budget, thereby ensuring transparency, accountability, full democratic control and protection of the Union’s financial interests; insists that the integration of such instruments into the EU budget must not result in a reduction of financing for other EU policies and programmes;

Amendment 39 #

Motion for a resolution
Paragraph 13

13. Recalls that the Union and its people have been at the forefront in supporting Ukraine from the very beginning of ~~the war~~Russia’s full scale invasion in 2022, showing solidarity with Ukrainians in their fight to defend democracy against authoritarianism; stresses that the EU budget has provided financial assistance in excess of EUR 30 billion to date; reiterates its view that the Union must be at the heart of continued efforts to support Ukraine financially and help it on its path to EU membership;

Amendment 4 #

Motion for a resolution
Paragraph 1a (new)

1a. Is deeply convinced that a true revision of the MFF is an exercise of in- depth analysis of all EU policies, evaluation of their real performance and added-value, as well as shutdown of those programmes which are clearly lagging behind;

Amendment 40 #

Motion for a resolution
Paragraph 13

13. Recalls that the Union and its people have been at the forefront in supporting Ukraine from the very beginning of the war, showing solidarity with Ukrainians in their fight to defend democracy against authoritarianism; stresses that the EU budget has provided financial assistance in excess of EUR 30 billion to date; reiterates its view that the Union must be at the heart of continued efforts to support Ukraine financially and militarily and help it on its path to victory and EU membership;

Amendment 41 #

Motion for a resolution
Paragraph 13

Amendment 42 #

Motion for a resolution
Paragraph 13a (new)

13a. Notes that Ukraine’s foreign reserves have climbed to an all-time high of 41.7 billion USD, according to UA National Bank;

Amendment 43 #

Motion for a resolution
Paragraph 14

14. Welcomes, therefore, the 14. Welcomes, therefore, the Commission’s proposal for a longer-term Commission’s proposal for a longer-term structural solution to Ukraine’s funding structural solution to Ukraine’s funding needs anchored in the EU budget, which needs anchored in the EU budget, which covers support for macro-financial stability covers support for macro-financial an investment framework and funds for stability, for immediate reconstruction accession-related reforms and for building needs, as well as an investment framework administrative capacity; considers that such and funds for accession-related reforms a longer-term instrument is the only viable and for building administrative capacity; way to engage other donors and to ensure considers that such a longer-term effective and targeted spending that meets instrument is the only viable way to engage the needs of Ukraine and its people; insists other donors and to ensure effective and that the Ukraine Facility should be agreed targeted spending that meets the needs of as soon as possible, following adoption of Ukraine and its people; insists that the the revised MFF Regulation, given that Ukraine Facility should be agreed as soon financing under the MFA+ Regulation1a is as possible, following adoption of the provided for 2023 only; revised MFF Regulation, given that financing under the MFA+ Regulation1a is provided for 2023 only; _________________ 1a Regulation (EU) 2022/2463 of the European Parliament and of the Council of 14 December 2022 establishing an instrument for providing support to Ukraine for 2023 (macro-financial assistance +), OJ L 322, 16.12.2022, p. 1.

Amendment 44 #

Motion for a resolution
Paragraph 14

14. Welcomes, therefore, the Commission’s proposal for a longer-term structural solution to Ukraine’s funding needs anchored in the EU budget, which covers support for macro-financial stability, an investment framework and funds for accession-related reforms and for building administrative capacity; considers that such a longer-term instrument is the only viable way to engage other donors and to ensure effective and targeted spending that meets the needs of Ukraine and its people; requests that appropriations currently set aside for Ukraine in the NDICI’s Emerging Challenges Cushion, namely the interest rate subsidy for MFA loans and the provisioning of the EIB repurposed loans, to be covered from the Ukraine Facility from 2024 onwards, freeing up further vital resources for sustainable development and climate action; insists that the Ukraine Facility should be agreed as soon as possible, following adoption of the revised MFF Regulation, given that financing under the MFA+ Regulation1a is provided for 2023 only; _________________ 1a Regulation (EU) 2022/2463 of the European Parliament and of the Council of 14 December 2022 establishing an instrument for providing support to Ukraine for 2023 (macro-financial assistance +), OJ L 322, 16.12.2022, p. 1.

Amendment 45 #

Motion for a resolution
Paragraph 14

14. Welcomes, therefore, the Commission’s proposal for a ~~longer-term~~ structural solution to Ukraine’s funding needs anchored in the EU budget~~, which covers~~ over the 2024- 2027 period, which covers both short-term and medium-term support for macro- financial stability and recovery, an investment framework and funds for the reconstruction and EU accession-related reforms and for building administrative capacity; considers that such a longer-term instrument is the only viable way to engage other donors and to ensure effective and targeted spending that meets the needs of Ukraine and its people; insists that the Ukraine Facility should be agreed as soon as possible, following adoption of the revised MFF Regulation, given that financing under the MFA+ Regulation1a ~~is provided for 2023 only~~ends in 2023; _________________ 1a Regulation (EU) 2022/2463 of the European Parliament and of the Council of 14 December 2022 establishing an instrument for providing support to Ukraine for 2023 (macro-financial assistance +), OJ L 322, 16.12.2022, p. 1.

Amendment 46 #

Motion for a resolution
Paragraph 16

16. Stresses the need to protect the rule of law and the financial interests of the Union and to prevent, detect and correct fraud, corruption, conflicts of interest and irregularities in the use of Union funds in Ukraine; coinsi~~der~~sts that the Facility should contain stringent provisions to attain those objectives with both strong ex-ante and ex-post oversight; highlights the need for the Facility to be based on appropriate conditionality, effective transparency and accountability, and alignment with Union policies and in particular the European Green Deal and the pathway to a climate neutral economy by 2050; furthermore, insist on the involvement of local and regional authorities as well as civil society organisations throughout the entire life- cycle of the facility;

Amendment 47 #

Motion for a resolution
Paragraph 16

16. Stresses the need to protect the rule of law and the financial interests of the Union and to prevent, detect and correct potential fraud, corruption, conflicts of interest and irregularities in the use of Union funds in Ukraine; considers that the Facility should contain stringent provisions and safeguards to attain those objectives; calls on the Commission to ensure that the ‘Ukraine plan’, which will have to be endorsed by the EU, places significant emphasis on public administration reform, good governance, the rule of law, and sound financial management, with a particularly strong focus on anti- corruption and anti-fraud;

Amendment 48 #

Petri SARVAMAA

Motion for a resolution
Paragraph 16

16. Stresses the need to respect, strengthen and protect the rule of law, press freedom and the financial interests of the Union and to prevent, detect ~~and correct~~, investigate and correct irregularities, fraud, corruption, conflicts of interest ~~and irregularities~~ in the use of Union funds in Ukraine~~; considers that the Facility should contain stringent provisions to attain those objectives~~, as well as to detect and avoid double funding and to take legal actions to recover funds that have been misappropriated; considers that the Facility should contain stringent provisions to attain those objectives by applying at least the same standards as provided for in the relevant EU legislation; stresses the need to fight against oligarch structures and that the respect for the rule of law and improving the conditions for the rule of law should go hand in hand with Ukraine's EU funding and therefore ensuring that alignment with rule of law conditionality is respected;

Amendment 49 #

Motion for a resolution
Paragraph 16a (new)

16a. Insists that humanitarian aid and support to Member States providing protection for Ukrainian refugees fleeing should be continued to be provided outside the Facility with appropriate financial resources and targeted at the main actors on the ground which are often local authorities and civil society organisations; reminds that both in Ukraine and in the EU, civil society organisations have proven to be instrumental in the ongoing provision of rapid and flexible support to, respectively, internally displaced persons and refugees fleeing Russia’s aggression and their role should be maintained and adequately financed; stresses that while many were welcomed in ad hoc settings, they are now facing longer term displacement requiring further support from actors on the ground;

Amendment 5 #

Motion for a resolution
Paragraph 2

Amendment 50 #

Motion for a resolution
Paragraph 16a (new)

16a. Requests that appropriations currently set aside for Ukraine in the NDICI’s Emerging Challenges Cushion, namely the interest rate subsidy for MFA loans and the provisioning of the EIB repurposed loans, to be covered from the Ukraine Facility from 2024 onwards;

Amendment 51 #

Motion for a resolution
Paragraph 17

17. Deplores the fact that, even prior to ~~the war against~~Russia’s full scale invasion of Ukraine, funds available under Heading 6 (neighbourhood and the world) were woefully inadequate and that the MFF did not factor in continued funding for the needs of refugees from Syria, Iraq and other countries which were known in 2020 already, leaving almost no scope to cope with additional challenges;

Amendment 52 #

Petri SARVAMAA

Motion for a resolution
Paragraph 17a (new)

17a. Recalls that, in order to strengthen and maintain the legitimacy of supporting Ukraine, full transparency and accountability in the use of EU funds is required, as well as the need for efficiency in the use of funds and a clear measurement and communication of achievements with a view to achieving greater European added value;

Amendment 53 #

Petri SARVAMAA

Motion for a resolution
Paragraph 18a (new)

18a. Considers that in order to fully protect the European Union’s financial interests regarding the long-term support for Ukraine, full co-operation with OLAF and EPPO should be ensured;

Amendment 54 #

Motion for a resolution
Paragraph 18a (new)

18a. Recalls that the funds deployed under Heading 6 must be submitted to conditionality principles such as repatriation of illegal migrants by their respective States;

Amendment 55 #

Motion for a resolution
Paragraph 19

19. Welcomes, therefore, the Commission’s proposal to increase the ceiling for Heading 6 in line with Parliament’s call, though regrets the fact that the extra resources do not fully cover real needs already visible (let alone any future unforeseen development); underlines that a further reinforcement of EUR 1 billion in current prices over and above the Commission proposal is vital to replenish the NDICI- Global Europe cushion and thereby create capacity to respond to crises and emerging needs and to manage increased humanitarian aid needs in Ukraine and neighbouring countries, such as Moldova, and worldwide; is concerned about any potential misuse of funds by third countries beneficiary authorities; calls on the Commission to conclude ex-ante human right impact assessments and calls on the Commission to ensure proper implementation of those funds including respect for human rights; stresses that the internal balance and distribution between the budget lines as provided for in the NDICI Regulation must be respected;

Amendment 56 #

Siegfried MUREŞAN

Motion for a resolution
Paragraph 19a (new)

19a. Calls on the Commission to provide an increased annual bilateral envelope for Moldova until the end of the current MFF given the wide social and economic impact of the war in Ukraine; at the same time stressing the need to start preparing Moldova for efficient use of the future pre-accession funds as a newly EU candidate country;

Amendment 57 #

Motion for a resolution
Paragraph 20

20. Underlines that the war against Ukraine, together with numerous armed conflicts, increased global hunger and poverty and more intense and frequent natural disasters, are forcing millions of people to flee their homes and seek protection in the EU; stresses the need for the Union to continue to provide support to the host Member States for the reception, settlement and integration of refugees;

Amendment 58 #

Motion for a resolution
Paragraph 20

20. Underlines that the war against Ukraine, together with increased global hunger and poverty and more intense and frequent natural disasters, are forcing millions of people to flee their homes and seek protection in the EU; stresses the need for the Union to continue to provide support to the host Member States for the reception, settlement and integration of refugees;Delete

Amendment 59 #

Motion for a resolution
Paragraph 20

20. Underlines that the war against Ukraine, together with increased global hunger and poverty and more intense and frequent natural disasters, are forcing millions of people to flee their homes and seek protection in the EU; stresses the need for the Union to continue to provide support to the ~~host~~ Member States for the reception, ~~settlement~~ and integration of refugees , for the resettlement of refugees from third countries to the EU and, where appropriate and necessary, the relocation of asylum-seekers within the EU;

Amendment 6 #

2. Underlines the fact that the revision must focus on addressing the manifold consequences of Russia’s war of aggression against Ukraine, on safeguarding the Union’s strategic autonomy and sovereignty and on endowing the Union with adequate flexibility to respond to crises; welcomes, therefore, the Commission’s proposal for a targeted revision as a first step in the right direction to ensure that the MFF can better address those challenges; however, points out that a higher but realistic ambition level is necessary to better address the structural challenges in the budget;

Amendment 60 #

Motion for a resolution
Paragraph 21

21. Stresses that ~~effective and~~the preservation of free movement within the Union, the fair management ~~and protection~~ of the EU’s external borders, ~~ensuring the security of the Union,~~ together with the smooth and efficient implementation of the Union’s migration and asylum policy, are key priorities a~~nd essential to preserve the free movement of people within the Union and~~lso to ensure the proper functioning of the Schengen area; stresses the need to implement a migration and asylum policy that is based on solidarity, responsibility and respect for human rights, providing certainty, clarity ~~and~~ decent and dignified conditions for people arriving in the EU;

Amendment 61 #

Motion for a resolution
Paragraph 21

21. Stresses that effective and fair management and protection of the EU’s external borders, ensuring the security of the Union, together with the smooth and efficient implementation of the Union’s migration and asylum policy, are key priorities and essential to preserve the free movement of people within the Union and the proper functioning of the Schengen area; stresses the need to implement a migration and asylum policy that is based on solidarity, shared responsibility and respect for human rights, promoting safe and legal pathways and providing certainty, clarity and decent conditions for people arriving in the EU, in line with Union values and international commitments;

Amendment 62 #

Motion for a resolution
Paragraph 21

21. Stresses that effective and fair management and protection of the EU’s external borders, ensuring the security of the Union, together with the smooth and efficient implementation of the Union’s migration and asylum policy, are key priorities and essential to preserve the free movement of people within the Union and the proper functioning of the Schengen area; stresses the need to implement a migration and asylum policy that is based on solidarity, responsibility and respect for human rights, providing certainty, clarity and decent conditions for people arriving in the EU; reminds that Russia’s war of aggression has led to a significant economic shock for the eastern border counties of the EU region, which should be taken into account by the reallocation of appropriate cohesion funds;

Amendment 63 #

Motion for a resolution
Paragraph 21

21. Stresses that effective and fair management and protection of the EU’s external borders, ensuring the security of the Union, together with ~~the smooth and efficient implementation of the Union’s migration and asylum policy~~ambitious policies to stop irregular migration, are key priorities and essential to preserve the free movement of people within the Union and the proper functioning of the Schengen area; stresses the need to implement a migration and asylum policy that is based on solidarity, responsibility and respect for human rights, providing certainty, clarity and decent conditions for people arriving in the EU;

Amendment 64 #

Motion for a resolution
Paragraph 21a (new)

21 a. Calls for a long term approach of making financial assistance to third countries conditional upon their cooperation on migration issues in order to prevent irregular migration flows;

Amendment 65 #

Motion for a resolution
Paragraph 22

22. Notes the Commission’s assessment that implementation of the New Pact on Migration and Asylum will require an additional EUR 12 billion between 2025 and 2027 under Heading 4 (migration and border management); considers that the additional demands on the Asylum, Migration and Integration Fund, the Border Management and Visa Instrument and the decentralised agencies in Heading 4 require a further reinforcement over and above the Commission proposal of EUR 1 billion in current prices and that the additional resources should be available from 2024;

Amendment 66 #

Motion for a resolution
Paragraph 22

22. Notes the Commission’s assessment that implementation of the New Pact on Migration and Asylum will require an additional EUR 1 billion between 2025 and 2027 under Heading 4 (migration and border management); considers that the additional demands on the Asylum, Migration and Integration Fund, the Border Management and Visa Instrument and the decentralised agencies in Heading 4 require a further reinforcement over and above the Commission proposal of EUR 1 billion in current prices and that the additional resources should be ~~from 2024~~available once the relevant legislative proposals enter into force;

Amendment 67 #

Motion for a resolution
Paragraph 22

Amendment 68 #

Motion for a resolution
Paragraph 24

24. Reaffirms the need to secure the open strategic autonomy of the Union, reduce dependence on non-EU countries ~~in key sectors and~~and boost investments across the Union, in key strategic sectors, including, among others, health, raw materials and space, while driveing forward the green and digital transitions; re~~call~~grets that the Commission did not respect its commitment under the work programme for 2023 ~~included a pledge~~ to ‘push to create a new European Sovereignty Fund’;

Amendment 69 #

Motion for a resolution
Paragraph 24a (new)

24a. Is disappointed by the backpedalling of the Commission; underlines that the US Inflation Reduction Act and other large-sized financial initiatives developed by third countries to produce key industrial products at home and outside of Europe pose massive challenges to the Union; notes that the current unstable geopolitical context implies risks for global supply chains; believes that the Union’s industrial strategy should also ensure the correct functioning of the single market, avoid market distortions and create a level playing field inside and outside the EU; highlights that an uncoordinated response by the European Union and the Member States, which have varying fiscal space for State aid, could create a risk of fragmentation of the single market;

Amendment 7 #

Motion for a resolution
Paragraph 2

2. Underlines the fact that the revision must focus on addressing the manifold consequences of Russia’s war of aggression against Ukraine, on s~~afeguard~~trengthening the Union’s open strategic autonomy and sovereignty and on endowing the Union with adequate flexibility to respond to crises; welcomes, therefore, the Commission’s proposal for a targeted revision as a first step in the right direction to ensure that the MFF can better address those challenges;

Amendment 70 #

Motion for a resolution
Paragraph 25

25. Acknowledges, ~~however~~despite its limited size and scope, that, by using existing programme structures and seeking to create synergies, the STEP proposal has the potential to deliver results ~~more~~ quickly; c~~onsiders that the STEP proposal should act~~alls on the Member States and the Commission to use the STEP as a testbed ~~for~~in view of a fully-fledged Sovereignty Fund in the next MFF period;

Amendment 71 #

Mauri PEKKARINEN

Motion for a resolution
Paragraph 25

25. Acknowledges, however, that, by using existing programme structures and seeking to create synergies, the STEP proposal has the potential to deliver results more quickly; ~~considers that the STEP proposal should act as a testbed for a fully-fledged Sovereignty Fund in the next MFF period;~~

Amendment 72 #

Motion for a resolution
Paragraph 25

25. ~~Acknowledges, however,~~Understands that, by using existing programme structures and seeking to create synergies, the STEP proposal has the potential to deliver results more quickly; considers, however, that the STEP proposal should act as a testbed for a fully- fledged Sovereignty Fund the soonest possible and, at the latest, in the next MFF period;

Amendment 73 #

Motion for a resolution
Paragraph 26

26. ~~Note~~Regrets that the STEP proposal ~~combines~~is mainly based on the re-prioritisation of funds under existing programmes, including the cohesion policy funds, with only some targeted reinforcements for specific programmes under Headings 1 (single market, innovation and digital), 3 (natural resources and environment) and 5 (security and defence);

Amendment 74 #

Motion for a resolution
Paragraph 26

26. Notes that the STEP proposal combines the re-prioritisation of funds under existing programmes, including the cohesion policy funds, with targeted reinforcements for specific programmes under Headings 1 (single market, innovation and digital), 3 (natural resources and environment) and 5 (security and defence); insists on the Commission to ensure the full mobilisation of related appropriations to achieve proper implementation of STEP;

Amendment 75 #

Motion for a resolution
Paragraph 26 a (new)

26a. Deplores that the STEP proposal relies on overly optimistic estimates on the possible multiplier effect of the proposed budgetary reinforcement of existing programmes such as InvestEU or the European Innovation Council; considers that such estimates should not justify an insufficient allocation of funds;

Amendment 76 #

Motion for a resolution
Paragraph 26 a (new)

26a. Underlines that defence challenges have surged since the beginning of the Russian war in Ukraine; considers that support to the defence sector is more crucial than ever to protect the sovereignty of European states and make Europe a safe continent while building the open strategic autonomy of the Union and strengthening the related production chains;

Amendment 77 #

Motion for a resolution
Paragraph 26 b (new)

26b. Is concerned by the impact of the high inflation on innovative and strategic projects financed under Heading 1, such as the Copernicus programme and its related implications for the monitoring of the environment; asks the Commission to pay particular attention to the viability of Heading 1 programmes following the revision of the MFF and its potential reinforcement;

Amendment 78 #

Motion for a resolution
Paragraph 26 c (new)

26c. Underlines the need for appropriate skills to implement strategic projects on the grounds; regrets that the Commission’s proposal on the MFF revision does not explicitly foresee financial support for the functioning of the European net-zero skills academies that are essential to equip the workforce with the necessary skills in net-zero technologies and reinforce the Union’s open strategic autonomy; calls, consequently, on the Commission to allocate additional amounts to the creation and functioning of the net-zero skills academies;

Amendment 79 #

Motion for a resolution
Paragraph 27

27. Underlines that, in order to deliver on the strategic objectives for STEP, financing should be increased, with further reinforcements of EUR 2 billion in current prices over and above the Commission proposal in Heading 1 and of EUR 12 billion in current prices over and above the Commission proposal in Heading 5;

Amendment 8 #

Motion for a resolution
Paragraph 2

Amendment 80 #

Motion for a resolution
Paragraph 27

Amendment 81 #

Motion for a resolution
Paragraph 28

28. Recalls its long-standing position that recurrent redeployments are not a viable way to finance the Union’s policy priorities; regrets that the Commission’s proposal redeploys money from Horizon Europe, EU’s main research and innovation programme;

Amendment 82 #

Motion for a resolution
Paragraph 28

28. Recalls its long-standing position that new priorities must be financed by fresh money and that recurrent redeployments are not a viable way to finance the Union’s policy priorities;

Amendment 83 #

Motion for a resolution
Paragraph 28

28. Recalls its long-standing position that recurrent redeployments are not a viable way to finance the Union’s policy priorities; notes, however, that the lack of fresh money might require the Union to mobilise the money already available but not used, such as from the cohesion policy or the recovery plan, to face critical shortages and dependencies;

Amendment 84 #

Motion for a resolution
Paragraph 28

28. Recalls its long-standing position that recurrent redeployments are not a viable way to finance the Union’s policy priorities and that new priorities should be funded with fresh resources;

Amendment 85 #

Mauri PEKKARINEN

Motion for a resolution
Paragraph 30

30. Recalls its long-standing demand that all EU spending instruments should be incorporated in the budget, in full respect of the principle of budgetary unity; ~~considers, in that connection, that the proposed allocation for the Innovation Fund under Heading 3 marks important progress towards its full budgetisation;~~

Amendment 86 #

Motion for a resolution
Paragraph 31

31. ~~Takes note~~Is very concerned that the amount programmed in the MFF to repay the borrowing costs associated with EURI is far below requirements, with the Commission estimating the shortfall to be between EUR 17 and 27 billion over the MFF period; highlights that, already in the draft budget, increased EURI costs are expected to consume all resources under the Flexibility Instrument and around one third of resources under compartment (a) of the Single Margin Instrument in 2024;

Amendment 87 #

Motion for a resolution
Paragraph 32

32. Underscores that steeply rising interest rates since Russia’s invasion of Ukraine have laid bare the inherent structural flaws in the EU budget’s debt repayment architecture; recalls that interest costs and debt repayment depend on market developments, are not discretionary spending and therefore cannot be subject to a spending cap under an MFF ceiling without posing a direct risk to investment programmes and their beneficiaries and the budget’s capacity to respond to emerging needs;

Amendment 88 #

Motion for a resolution
Paragraph 33

~~33. Recalls that Parliament has consistently called for a solution to this problem and insisted that the EURI repayment costs be placed over and above the MFF ceilings;~~Delete

Amendment 89 #

Motion for a resolution
Paragraph 34

34. Welcomes the creation of the EURI Instrument as a special instrument over and above the MFF ceilings to be mobilised as required based on the actual repayment needs; insists, however, that the Instrument cover all EURI repayment costs, not only those above the programmed amount under Heading 2b (resilience and values), thus also freeing up considerable fiscal space for policies under Heading 2b; underlines that a EURI Instrument designed in this way should be the model for managing all EURI repayment costs in the next MFF;

Amendment 9 #

Motion for a resolution
Paragraph 2

2. Underlines the fact that the revision must focus on addressing the manifold consequences of Russia’s war of aggression against Ukraine, on safeguarding the Union’s strategic autonomy and sovereignty, on enhancing social and economic convergence, on addressing the climate crisis and on endowing the Union with adequate flexibility to respond to crises; welcomes~~, therefore,~~ the Commission’s proposal for a targeted revision as a very first step in the right direction to ensure that the MFF can better address those challenges; stresses, however, that there are still many needs that are not covered by the Commission’s proposal and that these needs should not be left unaddressed;

Amendment 90 #

Motion for a resolution
Paragraph 34

34. Welcomes the creation of the EURI Instrument as a special instrument to be mobilised ~~as required~~ based on the actual repayment needs; insists, however, that the Instrument cover all EURI repayment costs, not only those above the programmed amount under Heading 2b (resilience and values); underlines that a EURI Instrument designed in this way should be the model for managing all EURI repayment costs in the next MFF;

Amendment 91 #

Motion for a resolution
Paragraph 35a (new)

35a. Points out the need for a more diverse and resilient set of revenue sources for the EU budget in order to provide robust and sustainable financing for a reinforced and scaled-up MFF; urges the Council, therefore to swiftly approve the existing proposals on new own resources;

Amendment 92 #

Motion for a resolution
Paragraph -36 (new)

-36. Recalls the importance of the Recovery and Resilience Facility in response to the Covid-19 and energy crises and calls on the Member States to ensure that the funds reach speedily citizens and the real economy;

Amendment 93 #

Motion for a resolution
Paragraph 37

37. Underlines, however, that the MFF contains very little flexibility, with the Flexibility Instrument and unallocated margins amounting to only 1.05 % of the commitments ceiling; ~~stresse~~regrets that the current MFF has relied heavily on that limited flexibility and indeed on reorienting cohesion policy, which is not a crisis response tool but has been repeatedly called on to make up for shortcomings in budgetary flexibility or crisis response mechanisms in the MFF to the detriment of its long-term policy objectives;

Amendment 94 #

Motion for a resolution
Paragraph 38

38. Points, furthermore, to the increased needs since the beginning of the MFF for humanitarian aid and emergency response inside and outside the Union and for support in relation to natural disasters, in particular those driven by climate change~~, and considers that these needs are likely to grow; stresses~~ are at an all-time high, increasing at an unprecedented speed and likely to grow; regrets that the EC proposal did not include a substantial increase in the humanitarian aid budget line, to match with the new humanitarian landscape; stresses with concern that the annual allocation for the SEAR was exhausted in 2021 and 2022 and is expected to be fully used in 2023; points out that beneficiaries of aid under the EU Solidarity Fund have, in some instances, received less than 50 % of the aid they would ordinarily have received and have had to wait a long time for disbursement owing to the limitations of the SEAR;

Amendment 95 #

Valérie HAYER

Motion for a resolution
Paragraph 38

38. Points, furthermore, to the increased needs since the beginning of the MFF for humanitarian aid inside and outside the Union and for support in relation to natural disasters, in particular those driven by climate change, and considers that these needs are likely to grow; stresses that the annual allocation for the SEAR was exhausted in 2021 and 2022 and is expected to be fully used in 2023; points out with concern that beneficiaries of aid under the EU Solidarity Fund have, in some instances, received less than 50 % of the aid they would ordinarily have received and have had to wait a long time for disbursement owing to the limitations of the SEAR;

Amendment 96 #

Motion for a resolution
Paragraph 39

39. Recalls its demands for an increase in the Flexibility Instrument and the SEAR and for an additional permanent special instrument to allow the EU budget to better adapt and quickly react to crises and their social and economic effects; understands that, in the absence of such an instrument, it will remain difficult for the Union to ensure its preparedness for unforeseen events, especially since, currently, 99.6 % of the Union’s budget is pre-allocated ; stands ready to work to find pragmatic solutions in the short term, including allocation of the unused yearly amounts of the European Globalisation Adjustment Fund to the Flexibility instrument, while reflecting on a more structural, streamlined solution in the next MFF;

Amendment 97 #

Motion for a resolution
Paragraph 39

39. Recalls its demands for an increase in the Flexibility Instrument and the SEAR and for an additional permanent special instrument over and above the MFF ceilings to allow the EU budget to better adapt and quickly react to crises and their social and economic effects; understands that, in the absence of such an instrument, it will remain difficult for the Union to ensure its preparedness for unforeseen events, especially since, currently, 99.6 % of the Union’s budget is pre-allocated ; stands ready to work to find pragmatic solutions in the short term, while reflecting on a more structural, streamlined solution in the next MFF, including also the establishment of a permanent fiscal capacity for the euro area;

Amendment 98 #