Brussels, 10 November 2020
On the 10th of November, the German presidency of the Council and the European Parliament’s negotiators reached a political agreement, thereby securing the Parliament’s consent to the next multiannual financial framework, EU’s long-term budget.
Following the intensive consultations with the Parliament and the Commission that have been underway since the end of August, the agreement complements the comprehensive financial package of 1,824.3 billion € negotiated by EU leaders in July. This package combines the next multiannual financial framework – 1,074.3 billion € – and a 750 billion € temporary recovery instrument, Next Generation EU (in 2018 prices).
The political package agreed with the Parliament includes:
- A targeted reinforcement of EU programmes, including Horizon Europe, EU4Health and Erasmus+, by 15 billion € through additional means (12.5 billion €) and reallocations (2.5 billion €) in the course of the next financial period, while respecting the expenditure ceilings set out in the European Council conclusions of 17-21 July.
- More flexibility to allow the EU to respond to unforeseen needs.
- Greater involvement of the budgetary authority in the oversight of revenues under Next Generation EU.
- Higher ambition on biodiversity and strengthened monitoring of biodiversity, climate and gender related spending.
- An indicative roadmap towards the introduction of new own resources.
The deal will now be submitted to Member States for endorsement together with the other elements of the next multiannual financial framework and recovery package, including the general regime of conditionality for the protection of the Union budget, on which the Council presidency and the Parliament’s negotiators reached a provisional agreement on 5 November.