The Commission has put forward its proposal for the new Multiannual Financial Framework of the European Union for the period 2014-2020. The Multiannual Financial Framework is the main budgeting document of the EU for the seven-year period, and little can be changed once it is adopted. The proposal has to be approved by the Member States and the Parliament.
The main innovations:
- A new fund for financing infrastructure, the Connecting Europe Facility that includes a preliminary list of transport, energy and ICT projects;
- Stronger link of cohesion financing with the Europe 2020 objectives;
- New category of ‘transition regions’;
- New conditionality provisions;
- Partnership contracts with each Member State to ensure mutual reinforcement of national and EU funding;
- An integrated programme of €15.2 billion for education, training and youth, with a clear focus on developing skills and mobility;
- A common EU strategy called “Horizon 2020” for investment in research and innovation worth 80 billion €;
- 30% of direct support to farmers will be conditional on “greening” their businesses;
- €4.1 billion for the fight against crime and terrorism and €3.4 billion for migration and asylum policies.
- New own resources for financing the budget- a financial transaction tax (Tobin tax) and a new modernized VAT;
- Simplification of the existing correction mechanisms.
You can also read the critical assessment of the proposal by Charlemagne. Real Time Brussels looks at the fierce political battles that will likely emerge in the process of adoption of the Multiannual Financial Framework.