The European Parliament continues to hold firm in the negotiations over the European multiannual budget (2021-2027). The Budget Committee of the European Parliament wants 39 billion euros more than the 1.8 trillion euros (including the corona recovery fund) that the heads of government agreed upon in June.
According to EU sources, there may be some room to negotiate a few billion, but no more than that. German Chancellor Angela Merkel believes a quick result must be achieved. If the European Parliament and the heads of government do not come to an agreement this month, the recovery fund's money cannot be deployed swiftly. Merkel already predicted in July that the negotiations with the parliament would be difficult.
The Parliament demands more money for health, science, climate, and youth. It also wants firm guarantees that no EU subsidies will go to countries (such as Hungary and Poland) that do not uphold the rule of law. So far, the heads of government threaten fines but have not imposed any. The European Parliament believes that after five years of futile persuasion, decisions must finally be made.
The vote between the EU Council of Ministers and the Parliament is downright poor. If an agreement is not reached this month, the implementation of the entire new budget starting January will be at risk. This also applies to the 750 billion euro corona fund, which is intended to be immediately beneficial to the hardest-hit countries and sectors.
Polish Deputy Prime Minister Jaroslaw Kaczynski says his country will veto the multiannual budget and the EU corona recovery plan if the EU bloc continues to ‘blackmail’ and impose its values on the country.
But it has not come to that yet: first, the EU Parliament and the member states must reach a compromise this week. Besides the rule of law, additional funds for the regular budget remain a firm stance of the Parliament. It wants 39 billion more for, among other things, science and the student exchange program Erasmus.