A group of 15 member states of the European Union, known as the “Friends of Cohesion”, which includes Romania, has sent a joint statement on the future Multiannual Financial Framework (MFF) 2028-2034, a document that will establish the European Union’s budgetary priorities for the next seven years.
The “Friends of Cohesion” group consists of Bulgaria, the Czech Republic, Croatia, Estonia, Greece, Italy, Lithuania, Latvia, Malta, Poland, Portugal, Romania, Slovenia, Slovakia and Spain. These countries warn that the future EU budget must not reduce traditional policies, in the context of negotiations for the Multiannual Financial Framework 2028-2034.
The Multiannual Financial Framework (MFF) 2028–2034 is “the strategic tool for achieving our common goals and ambitious vision for the future of the EU. A more competitive, more prosperous, stronger and more secure Europe requires sufficient funding to live up to our political ambition, adapted to the new geopolitical reality”says the Joint Declaration of the “Friends of Cohesion”.
The 15 countries argue that the future European budget must continue to adequately fund traditional policies. “The next MFF must continue to ensure sufficient resources for traditional policies deriving from Treaty obligations, such as the Cohesion Policy, the Common Agricultural Policy (CAP) and the Common Fisheries Policy (CFP), which play a fundamental role in promoting convergence, economic growth and food security,” it is also shown in the document.
At the same time, the signatory states emphasize that the EU budget must also support the Union’s new priorities:
“At the same time, the next MFF should support the growth of the EU’s strategic autonomy and continue to strengthen the EU’s competitiveness, climate and digital transition, security and defence, productivity and innovation, as well as ensure a solid basis for a fully integrated single market. It must also respond to new challenges such as security risks, disruptions to world trade, energy transition and security, migration, reflecting the geopolitical situation. Therefore, the MFF volume, as proposed by the Commission, is the basis of the discussion on how to effectively address the financial needs of the Union“, the statement reads.
Criticism of the European Commission’s proposal
The signatories claim that cohesion, agriculture and fisheries policies would be the only ones affected by real cuts, despite the overall increase in the EU budget.
“In the Commission’s proposal, Cohesion Policy, the CAP and the CFP are the only policies facing cuts in real terms, despite the overall increase in the volume of the new MFF. These policies contribute significantly to the EU’s key objectives and their Treaty-based objectives remain fully relevant. Cohesion Policy and the CAP are the most visible EU policies for Union citizens.”the Ministry of Foreign Affairs sent.
Requests for funding and control of funds
“In this context, we call for an increase in Member States’ allocations under Chapter 1 for traditional policies. The programming of these allocations, especially at the beginning of the programming period and at the mid-term review, should remain entirely the responsibility of Member States. The proposed coordination mechanism should not impact on Member States’ programming prerogatives. Although shared management tools can be based on the proposed reference framework, recommendations should not be automatically translated into obligations, because it would contravene the principle of shared management and the local approach”, it also shows in the document.
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Also, states demand more favorable conditions for the absorption of funds:
“To ensure the efficient use of EU funds under shared management, realistic and favorable implementation conditions are essential to support long-term investment and a high quality of spending. This requires maintaining the N+3 rule for decommitments, for the formulation of commitment and payment appropriations, as well as adequate EU pre-financing and co-financing rates for CAP and PCP measures, Cohesion Policy, including investments from Cohesion Fund and Internal Affairs funds. At the same time, Cohesion Policy should not be turned into a systematic crisis instrument, replacing other EU instruments for this purpose: the proposed 10% crisis reserve should be reduced; the rescheduling of ongoing measures in the Plan should remain a voluntary option for the Member State, while ensuring access to the crisis reserve and the EU Facility. In addition, Cohesion Policy should be endowed with adequate funding for all categories of regions.”
“We support the orientation of Chapter 2 towards competitiveness objectives. Regarding the European Competitiveness Fund (ECF), we recognize the centrality of the principle of excellence and the need to fully explore it across the EU. It is therefore necessary to ensure effective and inclusive access to strengthen overall competitiveness across the EU. To increase participation and promote capacity building across the EU, specific measures should be introduced to improve the access of less experienced entities to competitive calls, with a particular focus on SMEs, the backbone of the EU economy. In addition, more favorable implementation conditions should be ensured, such as an EU co-financing rate of 85% for Member States with a GNI per capita below the EU-27 average, for the Connecting Europe Facility, given its contribution to strengthening the Single Market and promoting EU resilience.”, shows the “Friends of Cohesion” Group.
The signatory states declare themselves open to discussions regarding new EU resources: “Friends of Cohesion are open to discussing proposals for new own resources that would effectively reduce the pressure on Member States’ budgets. These discussions must be linked to the overall MFF negotiations. Any new own resources must be genuine, fair, simple and non-regressive.”
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At the same time, they are calling for the removal of rebates based on GNI: “Removing the GNI-based own resource cuts is a must – there is no political or economic justification for reintroducing them to the revenue side of the EU budget. The added value of the Single Market and the EU as a whole, as well as the spillover effects of the EU budget, must not be overlooked.”
Also, ideas are advanced regarding the financing of future European investments: “A more gradual repayment scheme of Next Generation EU and new common lending to support borrowing (such as Catalyst Europe) should be considered as options for financing investments and European public goods essential for long-term strategic autonomy, ensuring that the MFF can effectively address the Union’s evolving challenges and priorities.”
“Friends of Cohesion are ready to contribute constructively to reaching a balanced compromise that benefits the entire European Union. Our common objective is to obtain a modern budget that meets the specific needs of member states and regions.” the Declaration signed by the “Friends of Cohesion” Group ends.
