Parliament on Wednesday approved the next multiannual financial framework (MFF) so that EU support for citizens could arrive early next year.

• The European Council agreement is finally accepted by a vote
• MEPs negotiate key additions to EU flagship programs such as Health, Horizon (research) and Erasmus + for the benefit of EU citizens
• A legally binding plan for the introduction of new agreed sources of EU revenue
• Parliament's role in overseeing recovery funds has improved
• Stronger provisions on biodiversity and gender provided

The text agreed with the Council on 10 November on the EU's long-term budget for 2021-2027 was approved on Wednesday by 548 votes to 81, with 66 abstentions. The text agreed with the Council on the Interinstitutional Agreement (IIA) was adopted by 550 votes to 72, with 73 abstentions.
€ 15 billion in additional funding for key EU programs
The increase is the result of Parliament's negotiating efforts to boost 10 selected EU flagship programs over the next seven years to better protect citizens from the COVID-19 pandemic, provide more opportunities for the next generation and preserve European values. Thanks to this compromise, the European Parliament is tripling the envelope for EU4Health in real terms, securing an additional year of Erasmus + funding and ensuring that research funding continues to increase.
- € 11 billion will mainly be withdrawn from the amount related to fines for infringements of competition rules (which companies have to pay if they do not comply with EU rules), in line with Parliament's long-standing demand that money generated by the European Union should remain in the EU budget. This amount of € 11 billion will gradually increase the overall MFF ceiling (set at € 1,074.3 billion in 2018 prices) to € 1,085.3 billion.
- EUR 4 billion will be financed by reallocation of funds and differences within the MFF.
- In addition, 1 billion euros will be allocated to address all future needs and crises, and could be added to leading programs.

New own funds
Negotiators agreed on the principle that medium to long-term debt repayment costs from the collection fund should not be to the detriment of well-established investment programs in the MFF, nor should they result in much higher GNI-based Member States' contributions. Parliament's negotiators have therefore drawn up a plan to introduce new own resources to be included in the EU budget over the next seven years.
This plan is part of the "Interinstitutional Agreement", a legally binding text. In addition to the contribution made from 2021, based on the amount of non-recycled plastic in the country, the plan includes own funds based on the ETS (emissions trading system) (from 2023, possibly linked to a carbon cap mechanism). It also includes a digital levy (from 2023) and own funds based on a financial transaction tax, as well as a financial contribution that the corporate sector must make or on a new common corporate tax base (from 2026).
Parliament will monitor how next-generation EU funds are spent
With regard to the expenditure of EU funds for the next generation, Parliament has provided regular meetings of the three institutions to assess the implementation of the funds made available on the legal basis of Article 122. These exceptional funds, outside the regular budget to re-launch the pandemic economy strongly affected, it will be spent in a transparent manner, and Parliament, together with the Council, will check for any deviations from previously agreed plans.

The Instrument for Recovery (Next Generation EU) is based on an article of the EU Treaty (Article 122 TFEU) which does not provide for any role for the European Parliament. EP negotiators have therefore insisted and called for a new procedure to establish a "constructive dialogue" between Parliament and the Council. Once the Commission has assessed the budgetary impact of each proposed new legal act under Article 122, it will start a dialogue between Parliament and the Council.
Horizontal issues: Biodiversity, gender and equal opportunities goals
Monitoring will be improved to ensure that at least 30% of the total EU budget and next-generation EU expenditure is earmarked for climate protection goals and that 7.5% of annual expenditure is earmarked for biodiversity targets from 2024, and 10% from 2026 onwards.
Gender equality and gender mainstreaming will now be a priority in the MFF, by thoroughly assessing the impact on gender equality and monitoring the program.

Next steps
The EU Council must formally approve the MFF regulation and the Interinstitutional Agreement, after which they will be published in the Official Journal and enter into force on 1 January.

Source and more information: European Parliament