The EP wants to increase the 2014-2020 budget
The MEPs refused to freeze the next long-term budget and challenge to the Member States who want to freeze it to spell out which priorities they would drop as a consequence of this measure. According to the European Parliament, a minimum increase of 5% is needed compared to the 2013 budget, if all the objectives and policies agreed for the EU are to be completed.
The Policy Challenges Committee at the European Parliament presented in May the proposal of increase for the 2014-2020 budget in order to achieve the goals agreed in the EU 2020 sustainable growth strategy. An increase of at least 5% over the 2013 level would mean that the EU budget would be roughly 1.11% of the EU's total GNI, compared to the 1.06% expected for 2013. Therefore, MEPs feel that freezing future budgets at the 2013 level is not a viable option.
They also criticise the current funding system, which relies almost entirely on national contributions and has become extremely complex. A system of real own resources should be fairer, more transparent, simpler and equitable, thus MEPs also call for an end to the rebates, exceptions and correction mechanisms that have accumulated within the current system. In addition, they fear that budget restrictions could jeopardise the already agreed boost for research and innovation as well as investment in infrastructure, foreign policy, infrastructure and enlargement.
With regard to regional policy (cohesion and structural funds) and farm spending should remain at current levels. Moreover, other problem with the current Multiannual Financial Framework (MFF) is the lack of flexibility it allows within annual budgets. If something new or unexpected comes up, it is hard to adapt the budget to accommodate it. MEPs would therefore like to see a global MFF margin to be created, consisting of unused margins, de-committed and unused appropriations from the previous year.
The European Commission has now to table two proposals, one on the next MFF and the other on own resources. Negotiations will then begin between the European Parliament and the Council.