The agreement on the next Multiannual Financial Framework (MFF) 2014-2020 reached by the European Council in February 2013 is of limited suitability to tackle the challenges ahead and – in its current form – constitutes a missed chance for a reformed and more effective EU budget. Although the heads of state and government repeatedly acknowledged the need for growth enhancing and job creating measures on the European level as well as increased investment in research and education, the agreement foresees a reduction of 3.5 % in comparison to the current MFF with payments falling to 0.95 % of EU GNI.
 
The EMI welcomes the decrease of market-related expenditure and direct payments in the Common Agricultural Policy (CAP), but too little resources have been reallocated to priority areas such as education and youth programmes, pan-European infrastructure, research and innovation or energy and climate technologies, which are vital for Europe’s competitiveness and the successful implementation of the Europe 2020 strategy. EU Member States remained reluctant to substantially reform the budgetary system of the EU by decreasing GNI-based contributions and replacing them with genuine own-resources.
 
The EMI therefore fully supports the European Parliament in its refusal to adopt the MFF, if the conditions of the Parliament’s resolutions of 23 October 2012 and 13 March 2013 are not met. Those conditions include conformity with the Treaties through the prevention of a structural deficit, maximum flexibility between and within headings, as well as between financial years and a compulsory and comprehensive revision of the MFF by the next European Parliament and Commission after the 2014 European elections to ensure full democratic legitimacy.
 
Europe will only be able to emerge from this crisis through a collective European effort, united by one common budget that provides the necessary financial flexibility and capability to fulfill the commitments deriving from the Lisbon Treaty and the Europe 2020 strategy.
 
Brussels, 21 March 2013