Press release – EP Group leaders endorse EU long-term budget and own resources agreement

Political group leaders also underlined the importance of the political agreement reached between Parliament and Council on the Rule of law Regulation.

Parliament has fought hard in the past ten weeks to reach a good agreement to address the effects of the COVID-19 pandemic and to support the recovery and make European society more resilient. Yesterday, Parliament and Council reached a political agreement on the EU’s future financing, the next EU long-term budget (MFF 2021-2027) and Own Resources proposal.

Parliament secured €15 billion for EU flagship programmes at the heart of citizens’ concerns that bring real benefits: research, health, climate and digital transitions and support for young people. €1 billion will increase flexibility to address future needs and crises.

The provisional agreement includes also:

  • a joint declaration on Next Generation EU (NGEU) interest costs and repayments in the 2021-2027 MFF to ensure that expenditure covering the financing costs of NGEU shall not reduce EU programmes and funds;
  • a legally binding roadmap for the introduction of EU own resources to finance the repayment of the recovery debt and to finance future budgets;
  • enhanced scrutiny of NGEU funds by the budgetary authority, ensuring democratic accountability is included in the Inter-institutional Agreement;
  • a role secured for the European Parliament in new proposals based on Art 122 TFEU with potentially significant implications for the European Union budget, by means of a Joint Declaration, and
  • a Commission declaration on the climate-tracking methodology and the involvement of Parliament and Council as well as a Commission declaration regarding climate contributions per programme.

Next steps

President Sassoli holds a press conference today at 14:00, more information here.

The Plenary will debate this afternoon at 15:15 the outcome of the negotiations. The agreement will then be subject to votes in the Committee on Budgets and the plenary in the coming weeks.