On Monday, Members of the Committee on Budgets adopted a legislative initiative report by 37 votes in favour, 1 against and 3 abstentions, requesting that the European Commission submits a proposal for an MFF (Multiannual Financial Framework) contingency plan by 15 June 2020.

While current budgetary ceilings would be automatically extended if no new MFF is in place next year, nonetheless many programmes will expire at the end of 2020. The aim is to provide a safety net for beneficiaries of EU programmes such as citizens, regions, cities, farmers, universities or businesses, and rule out any risk of the current MFF and programmes being discontinued or extended in a disorderly way.

Focus on tackling COVID-19 consequences

MEPs say the plan should make it possible to refocus the budget temporarily on addressing and mitigating the immediate economic and social consequences of the COVID-19 outbreak and on helping in the recovery, including additional flexibility and funding to this end which would be based on what was already done under this year’s budget.

The EP has indeed called for a massive recovery and reconstruction package which involves an increased MFF. The newly adopted report states that such a contingency plan could provide a better basis than a late and inadequate MFF for the European Union’s recovery and political priorities.

Quotes

Jan Olbrycht (EPP, PL), co-rapporteur: “The current situation needs extraordinary solutions. We are afraid that the new MFF 2021-2027 will not be ready on time due to accumulated severe delays. Therefore, we urge the European Commission to propose a contingency plan for next year’s budget. In times of crises and instability, beneficiaries of the EU budget should have a clear vision of the next year. Members of the European Parliament are searching for all possible solutions to secure the stability of the EU budget.”

Margarida Marques (S&D, PT), co-rapporteur: “An agreement is urgently needed for the MFF to enter into force on 1 January 2021. But we don’t want to take any risks. That is why we are insisting on asking the European Commission for a contingency plan that is not limited to extending the current programmes and amounts, but that is based on the imagination needed within the framework of the Treaties to not delay an effective European response to the crisis. Citizens, businesses, civil society organisations would not understand a gap in funding.”

Background

As the current long-term EU budget runs out on 31 December 2020, the EU needs a new budgetary planning horizon for the next seven years. The EU Commission thus presented plans for the next multiannual financial framework for 2021-2027 in May 2018, and announced a new proposal for May 2020 to take account of the health crisis and its consequences. The European Parliament adopted its position in November 2018, and re-confirmed it in October 2019. The Council has not yet been able to agree on a position.

Next steps

The report will be submitted to a plenary vote next week. If it is endorsed by a majority of Parliament’s component members, the Commission has to either submit a relevant proposal, or else must inform Parliament of the reasons why it will not do so, according to article 225 of the Treaty on the Functioning of the EU.

Upon her approval by Parliament last July, Commission President von der Leyen pledged: “When this House, acting by majority of its Members, adopts Resolutions requesting the Commission to submit legislative proposals, I commit to responding with a legislative act in full respect of the proportionality, subsidiarity, and better law-making principles.”

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European Investment Bank Group outlines finance and advisory support for health in response to COVID-19 at global Pledging Conference

·       EIB Group commitment at European Union-led global Pledging Conference

·       International partners pledge support for urgent funding to develop effective coronavirus vaccines and build capacity for early manufacturing at scale of diagnostics, vaccines and treatments

·       Pledging Conference follows recent new EIB supported initiatives including agreements with the WHO, CEPI and the UN-Habitat

The European Investment Bank (EIB) Group today joined a global fundraising effort in the fight against the coronavirus. The European Union-led global Pledging Conference, co-chaired by the President of the European Commission Ursula von der Leyen and other world leaders, aims to raise an initial €7.5 billion to end this pandemic.

The EU will team up with partners around the globe to hold a pledging initiative, with the aim of raising urgently needed funding to develop effective coronavirus vaccines quickly, build capacity for early manufacturing at scale of diagnostics, vaccines and treatments. Alongside the funding pledges, the initiative will also aim to secure high-level political commitment to ensuring equitable access to products created to tackle this pandemic.

The EIB is building a pipeline of potential investments in vaccine, treatments and diagnostics for the fight against COVID-19, leveraging on global partnerships with organisations including the European Commission, the WHO, and the Coalition for Epidemic Preparedness Innovations (CEPI), also with the objective to achieve sufficient manufacturing capacity. All this effort is complemented by what the EIB is doing in health and pandemic preparedness both inside and outside EU. The EIB has built a pipeline of projects of around EUR 6 billion of financing with partners in the health and life science sectors.

EIB President Werner Hoyer said: “To achieve the greatest global benefits we need solidarity, collaboration and partnerships, and we need it now. The EIB Group can bring financing and advisory support, creating firepower to develop a portfolio of COVID-19 vaccines. We also want to ensure that once we have vaccines, their supply is available everywhere. We have never before seen such a rapid and concerted effort across the globe to develop vaccines and treatments against a common enemy. Together with international partners at this global Pledging Conference we can speed up this work even further and ensure we use every instrument in our arsenal in the best way possible”.

EUR 770 million will be pledged in partnership and joint investment by the EIB Group and the European Commission for companies working on treatments, testing and vaccines. As part of this, the EIB will make an initial pledge today of 141 million from its own resources. The Commission will also announce the next milestones of a global campaign, which is to kick-off an ongoing rolling replenishment over the coming weeks. 

Pledging and international cooperation

The European Union is teaming up with a broad range of international partners to bring this initiative to life. This includes co-hosting the pledging moment, securing funding pledges and firm political commitment to equitable access by all partner countries, businesses and organisations. To this end the European Commission have been in contact with partner countries, international organisations e.g. UN, WHO, G7, G20 and a series of expert worldwide lead organisations (e.g. Wellcome Trust, Bill and Melinda Gates Foundation, GAVI, Global Fund) as well as the pharmaceutical industry and scientific community.

EIB new initiatives in the health sector

Last week, the EIB announced a new Memorandum of Understanding with the WHO, an Advisory agreement with CEPI, a collaboration with the Israel Innovation Authority and a €50 million financing agreement with Pluristem to develop therapies for COVID-19 and increased cooperation with UN-Habitat.

Strengthening EIB support for health, life science and COVID-19 investment

In recent years the European Investment Bank has provided more than 2 billion EUR annually for health care and life science investment.

In the context of the COVID-19 pandemic, the EIB is currently assessing over 20 projects in the field of vaccine development, diagnostic and treatment, leading to potential investments in the 770 million EUR range.

Background information:

About EIB:  The European Investment Bank (ElB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy objectives. 

The EIB is one of the largest public supporters of innovation in the EU. By supporting cutting-edge innovation and climate action, the EIB helps to make Europe more competitive. Since 2000, the Bank has invested more than EUR 210 billion in innovative projects, R&D, and skills and training.  In 2019, the EIB helped to improve healthcare services for 12 million people. In addition, the Bank’s loans backed safer drinking water for 10 million people.

For more information:

European Coordinated Response on Coronavirus

Coronavirus website

EIB Group’s response to the Coronavirus pandemic

Pledging Conference Factsheet – EIB support

“Information and communication are crucial in tackling the current health and economic crisis brought about by the Coronavirus pandemic”, stated European Parliament Vice-Presidents, Othmar Karas (AT, EPP) and Katarina Barley (DE, S&D) today, after two months of concerted EU efforts to tackle the pandemic.

“In the first instance, it is vital that all national authorities communicate clearly to the public about the measures needed to contain the spread of the virus, especially when considering lifting the lockdown. This must be done in a coordinated way across the EU”, Vice-President Othmar Karas stated.

“It is also imperative, in the interest of maintaining EU unity and solidarity, that national authorities also make an effort to communicate EU-wide collective action to assist the member states through this crisis in order to combat disinformation. Therefore, press conferences and video updates of European Commission President von der Leyen, especially when taking place in the European Parliament, should be broadcast widely in the member states. Information creates awareness”, added Karas.”

Vice-President Katarina Barley stated, “After all, the initiatives taken at EU level are approved not only by Members of the European Parliament from all member states, but also ministers from all national governments. We all play a part in the decision-making and we all have a stake in the outcome.”

Ms. Barley continued, “This is important for reasons of accountability, transparency, democracy and trust in our governance structures. Many aspects of the current crisis require a common approach and pooled resources; in agreeing rules to maintain open borders for the flow of vital medical and food supplies, support for businesses, jobs or consumers, funds to promote research into viable vaccines, common rules for the airline industry, support measures for agriculture and the tourism sectors and assistance to our immediate neighbours and third country partners.”

“The EU and ECB together have mobilised hundreds of billions of euros in financial support to underpin state finances and the economy, which is only possible due to the credit worthiness of the European Union and the large-scale leverage it has when acting together,” explained Karas.

Finally, yet importantly, Vice-President Barley emphasised: “Much of this effort goes under-reported or worse, disinformation campaigns are gaining traction and feeding the public a diet of fake news that is detracting from the true efforts to support each other in these very difficult and uncertain times.”

The press briefing ahead of the video conference of the EU-Western Balkans Zagreb Summit of 6 May 2020 will take place via video conference tomorrow Tuesday 5 May 2020 at 11.00.

This briefing is “off the record”.

In order to ask questions remotely, EU accredited journalists and journalists who had a EUCO accreditation from June 2019 EUCO meeting or later, can register using this link

Journalists who already registered for the press conferences on 23 and/or 28/4 don’t need to register again.

For this briefing, other journalists can be allowed for remote questions with a one-day accreditation: their acceptance is subject to approval by Council press centre. Please refer to “one-day accreditation” rules for the documents to provide and terms and conditions for the acceptance criteria. Please send your request to [email protected] with the necessary documents in attachment and register using this link.

Deadline: Tuesday, 5 May 2020, 09.30

Further instructions will be sent to all registered participants approximately half an hour after the deadline.

Visit the summit webpage.

Visit the meeting page