REPORT on the Council position on the draft general budget of the European Union for the financial year 2021

OPINION OF THE COMMITTEE ON FOREIGN AFFAIRS (13.10.2020)

for the Committee on Budgets

on the draft general budget of the European Union for the financial year 2021

(2020/1998(BUD))

Rapporteur for opinion: Nikos Androulakis

SUGGESTIONS

The Committee on Foreign Affairs calls on the Committee on Budgets, as the committee responsible, to incorporate the following suggestions into its motion for a resolution:

1. Notes that the budgetary year 2021 is the first of the 2021-2027 multi-annual financial framework (MFF); further notes that the bulk of external action spending is concentrated in the Neighbourhood, Development and International Cooperation Instrument (NDICI), on which inter-institutional legislative negotiations are still ongoing; stresses that those negotiations should conclude with an agreement as soon as possible;

2. Regrets that the new nomenclature for the external action part as proposed by the Commission is much less detailed than the previous one, reducing transparency, predictability, accountability, scrutiny, and limiting the budgetary authority’s capacity to make budgetary choices reflecting political priorities; insists, therefore, that a more differentiated budget structure, with dedicated lines for the most important beneficiaries and sub-regions, is needed, in order to enhance the clarity and readability of the budget; notes that the Committee on Foreign Affairs and the Committee on Development have proposed a revised nomenclature that is adapted to the new instruments, but introduces a higher level of detail by creating new budget lines within the extremely broad geographic and thematic lines proposed by the Commission; emphasises that the revised nomenclature enjoys strong support in both committees;

3. Rejects the deep cuts to heading 6 in the European Council agreement on the MFF of 21 July 2020, which would leave the NDICI at a lower level than its predecessor instruments during the current financial programming period, at a time when EU leadership is needed more desperately than ever; regrets the European Council's decision to discard the external pillar of Next Generation EU, namely the top-up of EUR 10,5 billion for the NDICI proposed by the Commission; emphasises that at a time when external challenges and matters of international politics are gaining importance and are dominating international politics, it has to be ensured that the external dimension of the Union budget is appropriately funded and prepared to respond without delay to current, emerging, as well as future challenges; calls for significant reinforcements for the NDICI as one of the EU's flagship programmes;

4. Calls for increased funding levels for all geographic and thematic programmes under the NDICI, in line with its first-reading position on the latter; reiterates its position that the thematic programmes within the NDICI should be reinforced in order to allow the Union to maintain its strong role in these priority areas; underlines that its position on the allocations for the NDICI is fully aligned with the amounts laid down in Parliament's first-reading position on the NDICI;

5. Calls in particular for a more ambitious budget of the human rights thematic programme of the instrument, in order to address the increasing challenges to human rights in the world, which are further compounded by the COVID-19 crisis; recalls that the protection and promotion of human rights worldwide continues to be a core business for EU external action; reiterates its strong support to human rights defenders, including environmental defenders, in particular those most at risk, and calls for adequate funds to support the project Protect Defenders EU in order to extend and reinforce their protection; emphasises that adequate funding for actions to protect persecuted minorities must be available; underlines its support, including as regards adequate funding, for the Special Envoy for the promotion of freedom of religion or belief outside the EU, as well as for activities to fight antisemitism and other types of discrimination.

6. At a time when democracy is becoming increasingly under threat around the world, reiterates its support for funding dedicated to election observation missions, including local observers; calls for increased funding for electoral observation missions and stresses their fundamental role of being a strong deterrent to electoral fraud and violence whilst also contributing to improving future elections, fostering peace and development and supporting democracy;

7. Calls for an increase in the budget lines for foreign policy needs and priorities, crisis response and civilian common security and defence policy emergency measures in order to deal with the dramatic effects of the COVID-19 pandemic;

8. Rejects the introduction of an “emerging challenges and priorities cushion” budget line, for which the Commission has provided no substantial information on the intended use of the funds under this line; insists that such a blank cheque is not compatible with the principles of transparency and democratic accountability and undermines the budgetary authority's prerogatives;

9. Emphasises the need for increased funding for the countries of the Eastern and Southern Neighbourhood in order to support political and economic reforms and support democratic transitions, with a focus on the most committed partners following the principle of ‘more for more and less for less’; calls for increased visibility and transparency for EU funding in the near neighbourhood; calls on the Commission to monitor that no funding is misused;

10. Welcomes the EU financial support of over EUR 980 million for the Eastern Partnership countries in the context of the COVID-19 pandemic to help tackle the immediate needs in the health sector;

11. Following the recent worrying developments in Belarus, calls for the creation of a new Special Representative for Belarus, to support the process for a peaceful transition of power in accordance with the will of the Belarusian people; emphasises the strong need for greater financial support to civil society, human rights defenders, independent unions, independent media and non-governmental organisations in Belarus, while freezing any EU financial transfers to the current Belarusian government;

12. Believes that it is important to continue confidence building with the Eastern Partnership countries and especially with the associated ones; underlines the importance of promoting fundamental rights, democracy and the rule of law; therefore calls for the allocations to Azerbaijan and Belarus to be limited to support to civil society and non-state actors, as well as people-to-people contacts;

13. Recalls the challenges the countries of the Southern Neighbourhood are facing especially due to the tumultuous developments in the region, including but not limited to the COVID-19 emergency and the fragile security environment; is of the opinion that, especially following the dramatic events in Lebanon, an increased support should be foreseen; regrets that 25 years after the launch of the so-called Barcelona Process, the construction of an area of shared prosperity, stability and freedom with the Mediterranean countries of North Africa has not yet been completed;

14. Calls for increased financial support for the United Nations Relief and Works Agency for Palestine Refugees in the Near East, in recognition of its essential role as a unique provider of vital services for millions of Palestine refugees and as an investment towards security, stability and development in the region;

15. In order to support a peaceful resolution to the Libyan conflict proposes the creation of a dedicated budget line for "the support to the political process in Libya";

16. Stresses the importance of the accession process of the Western Balkan countries; calls for increased funding to uphold the EU's engagement in the region, especially in the light of the COVID-19 pandemic and its economic effects; welcomes the stronger focus of the funding under the Instrument for Pre-Accession Assistance (IPA III) on the so-called fundamentals, notably democracy, the rule of law, respect for human and fundamental rights, good governance and civil society, as well as people-to-people contacts;

17. Points out that the revised nomenclature proposed by the Committee on Foreign Affairs envisages separate budget lines for the Western Balkans and Turkey; insists on the need for dedicated budget lines for Turkey in view of the highly sensitive nature of EU funding for Turkey;

18. Underlines that the allocation of IPA funding should be conditional on respect for the rule of law, democracy, human rights, European and international law, the sovereign rights of Member States and the principle of good neighbourly relations; underlines that due to the backsliding in all these areas, the allocations for Turkey should remain at a substantially reduced level and be limited to the so called fundamentals; funding for Turkey should be directly managed by the EU and focus exclusively on support for civil society and people-to-people contacts with the objective of protecting and promoting democratic values and principles, human rights and the rule of law; stresses that it is time for a different approach towards Turkey;

19. Stresses the responsibility of the EU to support the protection of the Arctic; underlines the importance of investing into developing a more coherent EU Arctic Policy;

20. Recalls that various European political leaders have highlighted the importance of significantly advancing the EU’s relations with the African continent, and hence stresses the need to adequately match words with deeds and provide adequate funding in order to address the many joint short-, medium-, and long-term challenges and opportunities which Europe and Africa can tackle together; emphasises the need for increased funding for the development and security of the Sahel countries;

21. Recalls that funding instruments, projects or programmes need to be assessed in the light of the Green Deal in general and the Union climate objectives in particular, and should take them fully into account;

22. Insists that the European Investment Bank reports in a timely and comprehensive manner on all its external spending to the relevant its committees;

23. Regrets the low level of funding for heading 5, and in particular for the European Defence Fund and for military mobility; calls for increased funding for the European Defence Fund in order to fully foster an innovative and competitive defence industrial base that will contribute to the much-needed strategic autonomy of the EU;

24. Calls for increased funding for military mobility with the aim of helping Member States act faster and more effectively; notes that sufficient funding is needed to support missions and operations under the common security and defence policy, including by measures such as funding dual-use transport infrastructure and simplifying diplomatic clearances and customs rules;

25. Stresses the importance of a progressive framing of the EU’s common security and defence policy; underlines the importance of enhancing European cooperation in defence matters since it not only makes Europe and its citizens safer, but also leads to a cost reduction, which means that more money is available for other pressing matters; calls on the Commission to propose strategic guidelines for strengthening the permanent structured cooperation;

26. Repeats its previous statements about the threats related to cybersecurity as well as the spreading of fake news; in this respect highlights the need for the Union budget to better address and respond to those key challenges on a horizontal level, including in particular at the headquarters of the EU, as well as its delegations around the world; calls for further and permanent funding for strategic communication actions to counter disinformation campaigns, propaganda and foreign influence, especially for the flagship project of the European External Action Service - East StratCom Task Force - EU vs. Disinfo;

27. Reiterates its firm belief that in countries of specific strategic interest for the EU, particularly the accession countries and the associated countries of the Eastern Partnership, a closer link between the Parliament and the respective national parliaments should be established, and therefore calls for adequate funding to ensure additional staff to enhance the important field of parliamentary cooperation;

28. Rejects the Council’s cuts to the administrative budget of the European External Action Service; calls on the Rapporteur for the Committee on Budgets for section X to restore the draft budget on all lines cut by the Council in section X.

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OPINION OF THE COMMITTEE ON DEVELOPMENT (6.10.2020)

for the Committee on Budgets

on the general budget of the European Union for the financial year 2021

(2020/1998(BUD))

Rapporteur for opinion: Charles Goerens

SUGGESTIONS

The Committee on Development calls on the Committee on Budgets, as the committee responsible, to incorporate the following suggestions into its motion for a resolution:

1. Firmly opposes the European Council’s cut to the Neighbourhood, Development and International Cooperation Instrument (NDICI) and deplores its rejection of the additional EUR 10,5 bn for the NDICI and EUR 5 bn for Humanitarian Aid from NextGenerationEU for a COVID-19 response; emphasises that this is illogical and unacceptable in the face of the pandemic which particularly hits the most vulnerable and has devastating repercussions on the pursuit of the Sustainable Development Goals (‘SDGs’), including on the eradication of poverty and the reduction of inequality, and of the humanitarian crises and the relentlessly aggravating climate crisis, the latter calling for stronger support for the global implementation of the Paris Agreement and for giving strong substance to the European Green Deal’s external dimension; considers that at a time when the Member States are facing strong difficulties to agree on a common migration policy, cutting the budget intended to tackle the abovementioned structural causes of uncontrolled migration is absolutely inconsistent and undermines the role of the Union as an international actor promoting stability and human rights;

2. Insists on the need for a differentiated set of NDICI budget lines providing transparency, predictability, accountability and proper Parliament influence; reminds that the negotiations on NDICI are still ongoing and that adaptations i.a. in relation to the new Africa-EU partnership need to be reflected in NDICI and its respective budget lines;

3. Notes that indicators of human development are expected to register a decline for the first time since the 1990s; recalls the urgent need to invest in social inclusion and human development , in order to support and strengthen the provision of basic social services, such as health, education (in particular schools reopening and remote learning opportunities), nutrition, food security, water, hygiene and sanitation and social protection, particularly to the most marginalised, and with an emphasis on women, children and people with disabilities;

4. Emphasises the urgent need to step up development cooperation on health, remote and inclusive learning programmes of high quality, and climate change adaptation and mitigation, as well as on biodiversity, nutrition, sustainable agriculture and food security, as the pandemic worsens the upward trend in global hunger; points out that in this regard support to institution building and strengthening and education to enlarge the skilled labour force are of great importance; affirms that a much higher sum for the people, planet, prosperity and partnership lines than the figure for the Global Challenges line in the draft budget is indispensable;

5. Encourages a reinforcement of decentralised cooperation with local authorities and of triangular cooperation to support the implementation of the SDGs and recovery from the Covid-19 pandemic;

6. Notes that the EU-Africa partnership has been attributed geopolitical importance and that cooperation with Africa plays an important role in reaching climate and energy targets; stresses the importance of channelling investments towards a carbon free economy by developing renewable energy sources and facilitating technology transfer such as for example solar power or green gas, including aspects of infrastructure and connectivity;

7. Notes that the increase in the humanitarian aid chapter still leaves a huge gap to the final figure in 2019; points out that the needs related to pandemics, disasters, displacements and other needs will increase, not shrink, requiring an increase in humanitarian aid funds to accompany the growing needs;

8. Emphasises the need for safeguards against the crowding out of internal or external use of the Solidarity and Emergency Aid Reserve;

9. Stresses the need for parliamentary oversight over the global challenges and priorities cushion; insists that this cushion can only exist in the annual budget under the condition that decisions on the mobilisation of funds are taken by delegated acts to fund the specific geographic, thematic and rapid response budget lines;

10. Underlines the need to ensure the financing of the EU Aid Volunteers initiative under Regulation (EU) No 375/2014 of the European Parliament and of the Council[9], in the event of a possible impasse in the ongoing negotiations on the European Solidarity Corps programme, as volunteers play an important role in the provision of humanitarian aid and can contribute to the Union’s capacity to cope with additional humanitarian needs in the view of the COVID 19 pandemic.

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OPINION OF THE COMMITTEE ON ECONOMIC AND MONETARY AFFAIRS (25.9.2020)

for the Committee on Budgets

on the draft general budget of the European Union for the financial year 2021

(2020/1998(BUD))

Rapporteur for opinion: Margarida Marques

SUGGESTIONS

The Committee on Economic and Monetary Affairs calls on the Committee on Budgets, as the committee responsible, to incorporate the following suggestions into its motion for a resolution:

1.  Calls for the 2021 Union budget to put European citizens at the heart of a just, inclusive and sustainable recovery strategy that would mitigate the impact of the COVID-19 crisis, and deliver on the European Green Deal, on the digital agenda, on an inclusive industrial strategy and on the European Pillar of Social Rights, while helping reach the EU climate commitments by 2030 and the commitment to a carbon-neutral economy by 2050 at the latest in the context of the Paris Agreement and the UN Sustainable Development Goals;

2. Calls for the 2021 Union budget, which corresponds to the first year of the 2021-2027 Multiannual Financial Framework, to make an ambitious, effective and efficient contribution to the recovery of the Union economy following the effects of the COVID-19 outbreak; welcomes the European Council agreement on a new recovery instrument, Next Generation EU (NGEU), based on common borrowing by the Union, as an important step for the Union relying on necessary solidarity to face a symmetric shock and calls for its swift adoption; deplores, however, the cuts in the grant component of NGEU which resulted in cuts to future-oriented programmes and the cancellation of innovative programmes; welcomes the initiative of the President of the Commission to directly involve Parliament in the negotiations of the recovery plan by activating Article 324 of the Treaty on the Functioning of the European Union; calls for the full involvement of European Parliament as budgetary authority in the recovery instrument;

3. Underlines the importance of accountability and transparency for bodies that receive Union funding;

4.  Calls for a more ambitious 2021 Union budget to support the speedy implementation of the Recovery and Resilience Facility (RRF) which aims to address the challenges identified in the European Semester in which the Sustainable Development Goals shall be integrated and support job creation and convergence within the Union; underlines that, as from 2021, the RRF should focus on sustainable growth-enhancing investment in line with the European Pillar of Social Rights, the Paris Agreement and the “do no significant harm” principle, the Union’s commitment to a carbon-neutral economy by 2050; believes that the RRF should also be consistent with national energy and climate plans;

 Recalls that the Union budget should also support the delivery of sustainable and socially balanced structural reforms that increase competitiveness, resilience, convergence, sustainable, inclusive and cohesive growth and urges, in that context, first payments to be done as early as possible in 2021;

 calls for ex-ante democratic and parliamentary scrutiny to ensure that there is a balance of institutional powers and that the Commission is empowered to monitor the Recovery and Resilience Plans and therefore demands that the European Parliament be involved through delegated acts, as well as in the ex-post verification that money under the Recovery and Resilience Facility is well-spent, in the interest of European citizens and that genuine European added-value is ensured;

5. Considers that significant technical support is essential to strengthen Members States’ administrative capacities in order to develop and implement the necessary reforms for resilience and recovery as early as 2021; calls on the Commission to work with Member States on green budgeting tools;

6.  Highlights the symmetric nature of the shock caused by the COVID-19 outbreak, notes however the asymmetric impact the Covid-19 outbreak is having on the economies of the Member States; underlines the importance of supporting companies with solvency issues as a result of COVID-19, in line with social, climate and environmental commitments of the Union; warns about the risk of distortions within the single market due to uneven capacity to provide financial support for Member States; regrets the withdrawal of the temporary Solvency Support Instrument by the European Council; insists that firms at risk of insolvency need rapid support to avoid any additional negative impact on investment and unemployment levels, as part of the current Multiannual Financial Framework of the Union;

7. Calls for the 2021 Union budget to ensure that the InvestEU Programme delivers on both its long term objective by providing more investments capacity aimed at supporting jobs, SMEs, sustainable infrastructure, research, and its new short term mission to support the economic recovery via strategic investments; calls on the Commission to ensure that the enterprises which play a role in the European value chain, such as subcontractors, remain viable and oriented towards greening and digital transitions;

8.  Welcomes the State aid Temporary Framework to support the economy in the context of COVID-19; calls for reinforced resources to ensure full and fast application of Union competition policy; highlights in that context the specific possibilities to provide public support to all micro- and small companies, even if they were already in financial difficulty on 31 December 2019 and supports the application of the Temporary Framework for as long as necessary during the recovery period; encourages Member States to make full use of the Temporary Framework also via its new recovery instrument, NGEU; anticipates that the Commission will also have to monitor such schemes approved under the Temporary Framework and their impact on the functioning of the single market; recalls the differing capacities of Member States to provide such economic support via State aid creating market distortions and an unfair playing field; calls on the Commission to support European companies investing in new technologies and to set common minimum standards in order to specify the requirement for companies receiving financial assistance to be in line with environmental, social and governance criteria and taxation transparency in order to avoid different national criteria giving rise to further discrepancies and to demonstrate how the public support received is used to align their operation with climate and environmental objectives of the Union and the Paris Agreement; recalls that aid should only be granted to cover the losses incurred in connexion to COVID-19; urges that companies registered in tax havens should be banned from accessing State aid or financial support packages if they do not commit to change their behaviour; calls on the Commission to ensure a level playing field compared to third country companies;

9.  Welcomes the European Green Deal as one of the main pillars for the transformation of the Union economy; calls for adequate funding to allow challenges related to sustainable development to be met, including through the Sustainable Europe Investment Plan; recalls the importance of moving Member State economies towards the Union objective of a climate neutral economy, Parliament´s position to achieve a climate mainstreaming spending level of 30 % and a biodiversity spending level of 10 % and the commitment of the European Investment Bank to phase out financial support to fossil fuels from the end of 2021;

10.  Calls for sufficient resources to fight tax evasion, tax avoidance, financial crime and money laundering and for adherence to the economic governance framework; stresses that estimates of annual losses due to tax evasion and tax avoidance vary between EUR 750 and 1000 billion for all Member States; welcomes in particular the Commission’s Action Plan for a comprehensive Union policy on preventing money laundering and terrorist financing that should be implemented in 2020 and 2021 and which foresees six pillars including one aimed at ensuring EU-level supervision; welcomes the Commission Action Plan for fair and simple taxation supporting the recovery;

11. Emphasises the continuing need for increased human and financial resources for accounting entities and tax authorities, including to support Union action to fight tax fraud, tax evasion and tax avoidance; welcomes the creation of the EU Tax and Financial Crimes Observatory as a preparatory action and its inclusion in the Commission Action Plan for fair and simple taxation supporting the recovery; calls for adequate funding and human resources for the relevant programmes and agencies;

12. Recalls that the introduction of a basket of new own resources is essential to meet the financial needs of supporting the recovery and for other Union priorities and remains the only way to ensure that the financing of the green and the digital transition does not weigh directly on citizens and future generations; urges Member States to swiftly agree on an increase to the own resources ceilings and to adopt rapidly the legislative proposals that will create new own resources such as a share of the revenues of a common consolidated corporate tax base, a digital services tax, a financial transaction tax, a plastics contribution and a carbon border adjustment mechanism; recalls the importance of creating European sovereignty in digital and industrial fields; stresses the need for a clear and binding calendar for their introduction;

13. Calls for the 2021 Union budget to contribute to fulfilling policy priorities in terms of the completion of the Capital Markets Union, including fostering investments in a post-pandemic recovery context;

14. Calls for adequate financial and human resources for the European Supervisory Authorities (ESAs) in view of their newly assigned tasks and powers deriving from the adoption of the Regulation (EU) 2019/2175 of the European Parliament and of the Council[10]; recognises the need to incentivise increased transparency on the functioning of the boards of supervisors of the different ESAs that would help to improve the accountability and the governance structure; highlights that developments in the fields of fintech, payments and non-bank financial intermediation may entail new competences and tasks for the ESAs which should be matched by adequate resources.

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OPINION OF THE COMMITTEE ON EMPLOYMENT AND SOCIAL AFFAIRS (9.10.2020)

for the Committee on Budgets

on the general budget of the European Union for the financial year 2021

(COM(2020)0300 – 2020/1998(BUD))

Rapporteur for opinion: Lucia Ďuriš Nicholsonová

SUGGESTIONS

The Committee on Employment and Social Affairs calls on the Committee on Budgets, as the committee responsible, to incorporate the following suggestions into its motion for a resolution:

A. whereas a Eurofound survey found that the financial measures implemented by governments and the social partners during the COVID-19 crisis have reduced financial hardship; whereas the survey also finds much higher levels of trust in both the national government and in the Union among respondents who received support; whereas the survey reveals that due to the economic implications of the COVID-19 crisis, more households are under financial strain than before the crisis began; whereas almost half of all respondents (47 %) indicate that their household has difficulties making ends meet;

B. whereas a Eurofound survey has found that 13 % of self-employed respondents without personnel, and 8 % of respondents who worked for an employer, became unemployed since the onset of the COVID-19 crisis; whereas respondents in the youngest age group (18-34), and those with primary or secondary education, were more likely to have become unemployed during the pandemic;

C. whereas Eurofound research highlights that the COVID-19 crisis poses a serious risk of rolling back decades of gains achieved in gender equality in labour market participation, particularly if activity is further hampered in sectors where women are overrepresented; whereas taking action is both a social and economic imperative; whereas Eurofound research points to the importance of implementing policy responses which can support gender equality and female integration into the labour force;

D. whereas the COVID-19 crisis is expected to trigger an economic and social crisis that will deeply affect the labour markets; whereas previous Eurofound research has shown that situations of that type can be tackled by public and social-partner based measures to maintain and create employment or income support for the unemployed and those outside the labour force, acknowledging the importance of co-financed measures by European funds such as the ESF and the EGF, in that respect;

1. Emphasises that, in accordance with Article 151 TFEU, the Union and the Member States, having in mind fundamental social rights such as those set out in the European Social Charter signed at Turin on 18 October 1961 and in the 1989 Community Charter of the Fundamental Social Rights of Workers, should have as their objectives the promotion of employment, the improvement of living and working conditions, proper social protection, the development of lasting high quality employment and the combating of exclusion;

2. Acknowledges that the proposed 2021 draft budget is based on the Commission proposal of 27 May 2020 on the 2021-2027 Multiannual Financial Framework (MFF) proposal; welcomes the necessary recovery plan adopted by the European Council, but regrets that the European Council proposal of 21 July 2020 on the MFF is EUR 25 700 million below that revised Commission proposal; highlights that the current exceptional circumstances cannot be tackled with a budget designed for “business as usual” and emphasises that a more ambitious response is needed, in line with Parliament’s position;

3. Calls for the Union to increase its efforts to boost social cohesion and upward convergence in Europe; recalls that, before the COVID-19 outbreak, more than 100 million Europeans were struggling with poverty and material deprivation on a daily basis and that the situation is likely to deteriorate further as a result of the crisis, particularly for vulnerable social groups; recognises the crucial role of European funds and programmes in the social area, in particular the European Social Fund (ESF), the Youth Employment Initiative (YEI), the European Globalisation Adjustment Fund (EGF), the Programme for Employment and Social Innovation (EaSI) and the Fund for European Aid to the Most Deprived (FEAD) in the current 2014-2020 MFF and the even more essential role the future ESF+ and EGF will play in the next 7 years; insists therefore that the ESF+, and in particular the FEAD, be adequately financed to overcome poverty in Europe;

4. Recalls that the COVID-19 outbreak has claimed thousands of lives in Europe and has led to an unprecedented crisis with disastrous consequences for people, families, workers, in particular mobile workers, NGOs and civil society organisations and businesses, especially SMEs and micro-enterprises, and therefore requires an unprecedented and effective response from Council and Commission; highlights that 2021 will be a critical year for the Union budget, as the first year of the 2021-2027 MFF and the first “post-COVID-19 recovery” year; highlights in particular that only a social and sustainable budget that leaves no group or sector behind will have an impact on the recovery following the COVID-19 crisis;

5. Stresses that the Union budget for 2021 should primarily focus on mitigating the social and employment effects of the COVID-19 crisis for workers and businesses and supporting Member States' recovery, while also building on the European Green Deal and digital transformation; welcomes in this regard that the 2021 budget will be complemented by EUR 211 000 million in grants and approximately EUR 133 000 million in loans under the Next Generation EU;

6. Stresses that the Union and all Member States must show full solidarity with those most in need and ensure that no country nor territory is left on its own to fight the COVID-19 outbreak, including the Overseas Countries and Territories and outermost regions by means of a dedicated support fund; recalls, in particular, Parliament resolution of 17 April 2020 on EU coordinated action to combat the COVID-19 outbreak and its consequences[11];

7. Stresses that the recovery efforts should boost sustainable growth that fits in the context of the European Green Deal, the resilience of our societies and quality employment, and should be complemented by a strong social dimension, addressing social and economic inequalities and the needs of those hardest hit by the crisis, particularly the Union and its Overseas Countries and Territories and vulnerable and disadvantaged groups, such as those in poverty, the unemployed, elderly and young people, persons with disabilities, single parents, mobile workers and migrants, whose social inclusion and labour market integration and retention must be supported and fostered;

8. Acknowledges that most of the sectors which have been hardest hit by the COVID-19 crisis were feminised and essential sectors, some of which have precarious working conditions, and that special efforts should be made and special resources should be allocated during the recovery period to improve employment conditions and recognition of such sectors;

9. Welcomes the Commission proposal to allocate EUR 1,5 000 million in 2021 to the Just Transition Fund (JTF) and highlights that the JTF must play a key role in supporting the needs of individuals and social well-being and the creation of decent and sustainable jobs, the reskilling of workers for modern jobs by providing adequate life-long training and boosting equal job opportunities for all and the creation of social infrastructure so no one is left behind;

10. Welcomes the forthcoming merger of the current ESF, the YEI, the FEAD and the EaSI under the European Social Fund Plus (ESF+), which should allow synergies to be enhanced and administrative burden to be reduced; regrets nevertheless, that the total amount allocated to ESF+ is still below the level of the 2014-2020 MFF; recalls that ESF+ will be the main financial instrument for strengthening Europe’s social dimension, by putting the principles of the European Pillar of Social Rights into practice and for the post-COVID-19 recovery; rejects any decrease of the ESF+ budget, as the lack of adequate financial resources risks not only to endanger its effective implementation and reaching its objectives but also to prevent an effective recovery; is concerned, in this respect, about the draft appropriations proposed by the Commission for the ESF+ in the 2021 draft budget  (EUR 12 655,1 million in commitment appropriations, EUR 15 374,8 in payment appropriations) and calls for its considerable increase, in particular, to tackle long-term unemployment and unemployment among young and older people, child poverty, the risk of poverty and social exclusion, discrimination, to ensure a reinforced social dialogue, addressing long-term structural demographic change and guarantee access for all, and especially for ageing populations, to vital and key services such as healthcare, social protection, mobility, adequate nutrition and decent housing;

11. Welcomes, in this regard, the Commission proposal for a new REACT-EU instrument designed to increase the amount of funding dedicated to Cohesion Policy, additional to the existing 2014-2020 envelopes and on top of the proposed envelopes for the 2021-2027 period; is however concerned about its temporary short-term nature and the fact that ESF+ alone does not have enough financial resources for the rest of the MFF period; calls on the Commission to provide Parliament and Council with an evaluation report on REACT-EU by 31 March 2025, covering budgetary commitments for the years 2020, 2021 and 2022 including information on the achievement of the objectives of REACT-EU, the efficiency of the use of its resources, the types of actions financed, the beneficiaries and final recipients of the financial allocations and its European added value in aiding the economic recovery;

12. Welcomes a number of new proposals by the Commission to tackle the social impacts of the current or future crises; notes in this context the introduction of temporary measures under the ESF+ in response to exceptional circumstances; warns about the possible risk of a weakening of the thematic concentration obligations that would put at risk key objectives and investments of ESF+, as well as the good use and effectiveness of the investments made by the ESF+, as, in the event of exceptional circumstances, the Commission may adopt implementing acts extending the scope of the ESF+ itself, as well as reducing the thematic concentration obligations;

13. Furthermore acknowledges, in this regard, the Commission’s proposal to finance short-time work schemes under such temporary measures; recalls, however, that short-time work schemes will already be financed by the newly introduced temporary SURE instrument of a much more significant volume, and that the Commission has committed to soon introduce a permanent instrument in form of a European Unemployment Reinsurance Scheme; stresses, in that context, that the ESF+ has already scarce resources for its original thematic concentrations that could be in such case further reduced; recalls furthermore that shorttime work schemes require much more money; calls, in that regard, on the Commission to introduce the European Unemployment Reinsurance Scheme without further delay;

14. Stresses the importance of the partnership principle, in order to ensure the involvement of social partners in all stages of the planning, implementation and monitoring of projects financed by the European Structural and Investment Funds (ESIF); considers it necessary that the partnership principle is also included in the ESIF, as well as in other relevant Union funds, including the Recovery and Resilience Facility (RRF) and REACT EU, for the 2021-2027 period;

15. Stresses that the forthcoming rationalisation should be based on evidence and impact assessment, and should be in line with the better regulation agenda, as well as with related recommendations of the European Court of Auditors; believes that the rationalisation should also help to address the social impacts highlighted by the COVID-19 crisis; highlights, in that regard, that the activities implemented in the area of employment and social affairs should always result in strategic measures with clearly defined objectives and targets and that efficient and effective spending is as equally important as the total budget ceilings;

16. Welcomes, in light of the expected increase in demand in the wake of the COVID-19 crisis, the Commission proposal to increase the annual funding available for EGF to EUR 386 million from 2021 onwards and is concerned that the Council proposal to limit that funding to EUR 197 million in 2021 will undermine the important role of the EGF in offering assistance to workers who have lost their jobs due to restructuring events;

17. Points out that the Commission’s undertaking to mobilise the EGF in response to the impact of the COVID-19 crisis on the social and economic level, and notes that extending the scope of the EGF to digital and green transitions will require sufficient funding for 2021, beyond the ceiling laid down by the Council;

18. Recalls that the EGF is without prejudice to the responsibilities of the companies concerned, by virtue of national law or collective agreement, in particular where it concerns mandatory actions for displaced workers; calls for a thorough assessment of the measures to be financed by EGF with the goal of using the money in an effective way;

19. Underlines that, in the context of ongoing budgetary constraints and of the post-COVID-19 recovery, it will be critical to make the best use of the 2021 general budget, including future skills policies and measures to support labour market transition and better adjustment to demographic change, and the green and digital transitions, and foster the integration of vulnerable and disadvantaged groups in the labour market; reiterates that the use of digital solutions based on the human-centric artificial intelligence is an opportunity to create jobs and integrate those groups in the labour market while fully respecting their fundamental rights and working conditions, including in terms of occupational health and safety (OHS), as well as its social consequences;

20. Calls for Union programmes to focus on projects that promote and enhance the safeguarding of existing jobs and the creation of quality jobs with rights and stable and regulated pay and working conditions, as well as effectively and incisively combating poverty and social exclusion;

21. Further underlines the importance of combating poverty, including child poverty, and of addressing social inequalities and the issue of youth unemployment and young people's access to the labour market;

22. Echoes the Commission prediction that, in the context of recovery from the COVID-19 outbreak, tackling child poverty will become even more important in the coming years; highlights in this regard the position of both the Parliament and the Commission that Member States should allocate at least 5 % of the ESF+ resources under shared management to support activities under the European Child Guarantee; consequently, and in line with the Parliament’ position on ESF+, insists that a separate budget line under ESF+ needs to be created for the European Child Guarantee with an allocation of EUR 3 billion for the year 2021;

23. Calls on Member States and the Commission to make combating youth unemployment a priority, in particular as part of the European recovery effort, to make full use of financial instruments such as the Youth Guarantee (YG), as well as European programmes such as Erasmus+, and to take tailored action to tackle youth unemployment and make young people more employable;

24. Highlights that the COVID-19 crisis has already left many people jobless, especially young people who find themselves more often in precarious employment; welcomes in this context the Commission’s plans to strengthen the YG and highlights that it is necessary that Member States continue to invest sufficient ESF+ resources in measures to support youth employment and that they shall therefore allocate at least 15 % of their ESF+ resources under shared management to targeted actions and structural reforms to support quality youth employment;

25.  Strongly believes that gender responsive budgeting must be mainstreamed in the 2021 general budget to better align policies and activities that promote the equal participation of women in the labour market and to have comprehensive systems to monitor and measure gender budget allocations;

26. Emphasises the importance of budgetary accountability and prioritisation when delivering true value for money for Union citizens, including a stronger focus on evidence-based policymaking that is inclusive, and special attention to social, regional and territorial disparities and income inequality;

27. Highlights the important contribution of the agencies in dealing with a wide range of employment and social issues such as living and working conditions, mobility, health and safety, skills, etc. and data collection, particularly through surveys; stresses that their tasks are constantly evolving and hence they must be given the necessary resources to fulfil them; therefore calls for a thorough assessment of the new and existing tasks assigned to the agencies and of their overall performance, with a view to ensuring appropriate and efficient budgetary allocations and to ensure that they are equipped with the necessary funding to be able to collect the qualitative data necessary to better fulfil these obligations; insists, in particular, on a proper staffing and financing of the new European Labour Authority (ELA);

28. Points out, in this regard, that the resources currently foreseen for the ELA in 2021 are lower than the ones defined in the updated financial statement for the agency, which foresaw EUR 29 million for 2021 instead of EUR 24 million; in the light of the challenges in ensuring fair labour mobility highlighted by the COVID-19 crisis, in particular for posted and seasonal workers and to fight against undeclared work, considers that the budget for the ELA should be strengthened to at least the amount originally foreseen;

29. Calls for the establishment of a cross-national forum for national policy makers to exchange on practices and experiences related to support for employers and workers affected by economic and labour market crises which could draw information on such interventions gathered in Eurofound’s European Restructuring Monitor (support instruments and legal databases), the expertise built up in similar previous exercises (such as Eurofound’s Regional Industrial Policy Seminars realised in the framework of the Pilot Project “Future of Manufacturing in Europe” or DG Employment’s national seminars on anticipating and managing restructuring (A.R.E.N.A.S.), and implemented by a collaboration of various EU institutions (e.g. DG Employment, Eurofound, Cedefop);

30. Reminds of the Commission commitment to swiftly assess the revision of the Biological Agents Directive (BAD) and possibly other occupational health and safety legislation in the light of the COVID-19 crisis, and to accelerate their work on the new EU OSH strategic framework; calls in this regard for appropriate resources to be allocated to the responsible unit in DG Employment to meet this commitment;

31. Is concerned about the Commission proposal to merge different budget lines linked to social policy objectives, in particular the lines supporting Information and training measures for workers’ organisations, Information, consultation and participation of representatives of undertakings, Industrial relations and social dialogue into one single budget line “07 20 04 06 - Specific competences in the area of social policy, including social dialogue”; believes that separate budget lines as was the case in the past would guarantee the necessary transparency and resources for each of these key areas;

32. Reiterates that pilot projects (PPs) and preparatory actions (PAs) are, if carefully prepared, very valuable tools to initiate new activities and policies in the fields of employment and social inclusion and that several ideas of the Committee on Employment and Social Affairs have been implemented successfully in the past as PPs/PAs; recalls that these tools should be targeted towards promoting innovative ideas that reflect the needs of the current crisis and the future policies;

33.  Is however concerned about the lack of objectivity of the Commission’s pre-assessment, which has a significant impact on their adoption in the Parliament, and emphasises the importance of a transparent approach by the Commission when assessing PPs/PAs;

34. Moreover calls for the implementation of PPs/PAs to be transparent and in line with their adopted objectives and recommendations; calls the Commission to prioritise, for efficiency reasons, the implementation of these projects and actions through Union agencies when they fall under their areas of expertise;

35. Emphasises the importance of including the Overseas Countries and Territories in its budgeting; urges the Commission to implement measures and funding to address the effects of the COVID-19 crisis on the Overseas Countries and Territories.

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OPINION OF THE COMMITTEE ON THE ENVIRONMENT, PUBLIC HEALTH AND FOOD SAFETY (10.9.2020)

for the Committee on Budgets

on the draft general budget of the European Union for the financial year 2021 - all sections

(2020/1998(BUD))

Rapporteur for opinion: Pascal Canfin

SUGGESTIONS

The Committee on the Environment, Public Health and Food Safety calls on the Committee on Budgets, as the committee responsible, to incorporate the following suggestions into its motion for a resolution:

1. Recalls that the 2021 Union budget is the first one under the Multiannual Financial Framework (MFF) for 2021-2027; stresses that the amounts allocated to the 2021 budget should match up to the expectations of Union citizens in a post-COVID-19 Europe, fostering strong economic recovery and improving public health, and should be aligned with the Paris Agreement and with the Green Deal objectives, and in particular that of becoming climate neutral by 2050 at the latest, while supporting the Member States that have suffered the most; calls on the Commission to assess the 2021 Union budget in the light of the provisions of this paragraph, and to make the appropriate corrections if they are not met;

2. Welcomes the Solvency Support Instrument to enhance the level playing field in the single market, and the provision that stipulates that beneficiaries of financial support will be encouraged to put in place a green transition plan in line with the Green Deal objectives; is of the opinion that that provision should be mandatory, and linked to clear and transparent climate targets;

3. Considers that the Union should also show global climate leadership through its budgeting; highlights that every effort should be made to ensure that the overall climate and biodiversity mainstreaming targets are reached as soon as possible; recalls Parliament’s position calling for at least 10 % of the Union budget to be allocated to biodiversity expenditures and the position of the Committee on the Environment, Public health and Food Safety calling for 40% of the Union budget to be allocated to climate expenditure; points out that climate and biodiversity-related expenditure must be tracked using a more robust, transparent and comprehensive methodology; is of the opinion that the Taxonomy Regulation provides the proper framework to update that methodology;

4. Underlines that investment in the green transition must be accelerated in order to create the necessary conditions for Europe’s long-term growth and for ensuring the resilience of the European economy to future shocks;

5. Points to the need to ensure sufficient resources in the 2021 Union budget for the achievement of the United Nations Sustainable Development Goals;

6 Is especially concerned that the contribution to climate and biodiversity spending of the Common Agricultural Policy (CAP) has been grossly overestimated, as highlighted by the Court of Auditors; notes that the Court of Auditors’ Special Report No 13/2020 found that the CAP 2014-2020 has not contributed to halt the decline in biodiversity; stresses in that regard the need to end all harmful agricultural subsidies;

7. Calls on the Commission to implement green budgeting tools as of 2021; underlines in that regard the importance of effective climate and biodiversity proofing of the budget, use of the “do no harm” principle and effective correction measures;

8. Underlines that sufficient resources should be secured for tackling biodiversity loss and environmental degradation, and for the achievement of the objectives of the new 2030 Biodiversity Strategy; highlights the importance of allocating adequate funding for the LIFE Programme; recalls that the One Health approach is a key prerequisite for a resilient and strong public health system, all the more important in light of the spreading of zoonoses such as COVID-19; recalls that excessive use of antibiotics in animals and humans are amongst the leading threats to EU public health;

9. Calls for an increase in support for the LIFE Programme, including dedicated envelopes for biodiversity and the management of the Natura 2000 network, and measures to ensure the fair distribution of funding among Member States; urges in addition that support be provided for ecological and plant health assessments in forests and the rehabilitation of forests, specifically reforestation with native species, especially in those countries that have suffered the greatest fire damage;

10. Stresses that sufficient funding should be allocated to the Union Civil Protection Mechanism, in order to help tackle public health emergencies, forest fires, floods, earthquakes and other natural and human-made disasters, the effects of which are expected to be further exacerbated by climate change; stresses that the need for a more flexible, faster and coordinated civil protection mechanism is one of the lessons learned from the COVID-19 outbreak, which exposed the weakness of the current legal framework;

11. Highlights that the 2021 Union budget should contain sufficient resources for the development of capabilities to deal with pandemics in order to ensure the protection of Union citizens, and to set up the foundations for strengthening Union action on key aspects of health, leading to the creation of a European Health Union; stresses that sufficient resources should be allocated in particular for strategic material such as vaccines, treatments and medical devices and the implementation of the upcoming Pharmaceutical Strategy for Europe, for facilitating cross-border mobility of patients and medical professionals, and increasing investments in medical research; underlines that sufficient resources should be allocated to the EU4Health Programme; points out that the strengthening of the competences of the European Centre for Disease Prevention and Control (ECDC), as provided in the new MFF, should be reflected in appropriate budgetary measures as of 2021, in addition to which the competences and the budget for the European Medicines Agency (EMA) should be increased; points out that efficient joint public procurement can lead to significant savings in the budget of the Union and its Member States;

12. Stresses that it is imperative that the Union budget is given sufficient resources to be able to deliver on the high expectations in place for its role in achieving sustainable recovery and just transition to climate neutrality; emphasises the key role that the development of own resources can play in this regard; recalls the demands of Parliament to establish a basket of new own resources including plastics-based tax and  revenue from the EU Emissions Trading System (EU ETS); stresses the need for the Union to significantly expand its basket of own resources;

13. Calls on the Commission to secure an adequate level of human resources for Directorates relevant for ensuring full implementation of the Biodiversity Strategy, Chemical Strategy for Sustainability and moving towards a circular and climate neutral economy by 2050 at the latest; is concerned by the fact that the staffing of the Directorate General for Environment has undergone significant reductions in the last years and its HR level represents only 1,3 % of all Commission staff; believes that a sufficient level of qualified staff is a precondition for the successful implementation and enforcement of Union policies;

14. Welcomes the EU4Health Programme that contributes to address the significant structural needs identified in the COVID-19 crisis, setting out key action areas such as the improvement of national health systems, and the availability and affordability of medicines and other crisis-relevant products;

15. Advocates a CAP that supports local agro-ecological production by small-scale farms that respects food produce and coexists with the natural environment, without using harmful pesticides and chemical fertilisers; calls for the Union budget to provide funding lines and instruments to assist in the development of policies intended to minimise the impact of herbicides, particularly on pollinators, and to consolidate and promote conservation and integrated agricultural production methods;

16. Points to the importance of ensuring that sufficient financial resources and adequate human resources capacities are allocated to Union agencies under the remit of the Committee on the Environment, Public Health and Food Safety (ECHA, ECDC, EEA, EFSA and EMA), enabling them to fulfil their mandate, execute their tasks and respond optimally to the consequences of the COVID-19 outbreak; underlines the fact that proper coordination between agencies is needed to increase the effectiveness of their work and allow for a fair and efficient use of public money;

17. Calls on the Commission to swiftly implement pilot projects and preparatory actions and stresses that such instruments and their results should be integrated in Union policy actions and programmes to fulfil their objective.

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OPINION OF THE COMMITTEE ON INDUSTRY, RESEARCH AND ENERGY (6.10.2020)

for the Committee on Budgets

on the general budget of the European Union for the financial year 2021

(2020/1998(BUD))

Rapporteur for opinion: Cristian‑Silviu Buşoi

SUGGESTIONS

The Committee on Industry, Research and Energy calls on the Committee on Budgets, as the committee responsible, to incorporate the following suggestions into its motion for a resolution:

1. Regrets the agreement reached by the European Council in July on the 2021-2027 MFF with regard to the programmes in the ITRE remit; highlights that the financial envelopes for all those programmes are below the level initially proposed by the Commission in 2018 and below the level considered necessary by the European Parliament; strongly believes that without sufficient funding those programmes risk not being able to deliver on their policy objectives which would result in the Union not being in a position to attain its twin goals of a digital and green transformation; stresses, furthermore, that the Union should provide sufficient funding if it expects research and innovation to have an impact on important challenges such as finding a COVID-19 vaccine, overcoming the healthcare and economic crisis, decarbonising the economy, speeding up the energy transition, becoming a leader in new and innovative technologies, supporting businesses (especially SMEs) in the recovery ; reiterates, therefore, its intention to negotiate targeted financial reinforcement of flagship Union programmes in the next MFF;

2. Believes therefore that the 2021 budget should aim at using the entire available margin and make recourse to all available flexibility instruments in order to strengthen in particular Union programmes that support ecological, energy and resource-efficient and sustainable digital transformation, the fight against the social and economic impact of the Covid-19 pandemic as well as the prompt recovery of Union SMEs, which have been hit the hardest by the crisis; Insists that the 2021 budget should greatly contribute to funding the European Green Deal Investment, which aims to create an enabling framework to facilitate and stimulate public and private investments needed for the transition to a climate-neutral, competitive and inclusive economy;

3. The impact and consequences of the COVID-19 pandemic exacerbated persistent weaknesses in health systems and demonstrated the need for investing in health research in order to ensure health as a public good for all and to raise the quality of life of citizens. New approaches for human centred health care are required. Calls, therefore, for stronger support in the 2021 budget for ensuring access to diagnostics, therapeutics and quality public health services for all;

4. Highlights in particular the fact that additional funds are needed for Horizon Europe, the new Digital Europe Programme, CEF-Digital and the Space Programme in order to support the digital transformation of societies and industries, including the up-skilling and re-skilling of Union workers and citizens, which is vital for the future prosperity of Europe in a challenging geopolitical context; underlines that the COVID-19 pandemic  showed the increasing importance of digitalisation for the daily functioning of the economy, asks therefore for adequate funding to be allocated for increased connectivity, with investment in strategic digital capacities (artificial intelligence, cybersecurity, data and cloud infrastructure, high-speed networks) building areal data economy and sustainable value chains;

5. Insists furthermore that additional funds are necessary to make the European Green Deal a success, to adequately address the climate crisis and contribute to the transition towards a climate-neutral economy and society by 2050 in line with the Paris Agreement; notes that to this end substantial increases are needed for Horizon Europe, CEF-Energy and the Space Programme as well as the Just Transition Fund;

6. Stresses the need to support the Union's competitiveness and industrial capacity, calls in this regard for sufficient funding to support SMEs, micro entreprises and startups, which have been severely affected by the crisis; underlines in addition the importance of programmes such as the European Defence Fund in supporting the strategic autonomy of the Union;

7. Calls on the Commission to put forward a comprehensive and detailed legislative proposal on tracking, accounting and proofing for climate and biodiversity mainstreaming and requests that the European Parliament is closely involved in the development of these methodologies;

8. Recalls the important role that Union agencies play in helping to achieve policy objectives set by the European Parliament and the Council; calls therefore for sufficient funding and staffing for all agencies in line with their tasks and responsibilities; underlines in particular the need to substantially reinforce ACER, which has been underfunded and understaffed for many years, risking to jeopardise ACER’s functioning and its ability to perform its tasks on monitoring and market transparency as well as the additional tasks conferred on it through recent legislation including the Clean Energy Package; regrets that the Commission once again did not address this problem already in its draft budget; recalls that as from 2021 the European GNSS Agency will be converted into the European Union Agency for the Space Programme with a broad list of new tasks assigned to it; requests in that regard an adequate increase of its budget;  recalls its resolution of 14 May 2020 on the discharge to the  Agency for Support for BEREC[12]  requesting an appropriate increase of budget allocated to the Agency for Support for BEREC which is essential, due to the fact that BEREC currently relies on external resources which creates a risk to business continuity; requests, furthermore, an adjustment of the establishment plan and a targeted budget increase for the Agency for Support for BEREC.

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OPINION OF THE COMMITTEE ON INTERNAL MARKET AND CONSUMER PROTECTION (3.9.2020)

for the Committee on Budgets

on the general budget of the European Union for the financial year 2021 - all sections

(2020/1998(BUD))

Rapporteur for opinion: Leszek Miller

SUGGESTIONS

The Committee on the Internal Market and Consumer Protection calls on the Committee on Budgets, as the committee responsible, to incorporate the following suggestions into its motion for a resolution:

1. Welcomes the fact that the Commission has proposed a new dedicated programme to support the effective functioning of the single market, which brings together six predecessor programmes, as well as numerous measures from different policy areas; believes that that new programme will help to improve the functioning of the internal market and the competitiveness of SMEs to generate Europe’s growth in the globalised market; calls therefore on the Commission and Member States to maintain sufficient funding of the Programme, especially in the context of the recovery plan and the green and digital transition;

2. Notes that the responsibility of the IMCO Committee in the budget procedure covers heading one - Single market, innovation and digital, including budget clusters 03 02 Single Market Program, EU Anti-Fraud Programme 03 03, and 03 05 Cooperation in the Field of Customs;

3. Notes that almost all sectors of the European economy have been heavily affected by the COVID-19 crisis; underlines that successful recovery requires Member States to respect the internal market rules; emphasises that consumers will regain trust in the Single Market by ensuring that their rights are upheld; stresses the need for businesses, especially SMEs, to be supported in their green and digital transition and development, as well as their access to the single market; believes that the appropriations assigned within heading one should be increased to become a strong centre for funding dedicated to sustainability, innovation, strategic infrastructure and digital transformation, making the single market stronger and more resilient, also by investing in energy efficient economy; underlines the particular need to create synergies between the Single Market Programme with the Next Generation EU recovery fund to mobilise the necessary investments;

4. Notes that COVID-19 crisis has shown the reliance of the EU’s single market on global supply chains and manufacturers, as well as showing the dangers of a lack of product safety; underlines therefore the importance of a robust consumer policy that gives protection and predictability to consumers both offline and online, and confidence to businesses to provide their goods and services across the internal market and ensures market surveillance and compliance with EU law; underlines the importance of further deepening the single market through the effective removal of obstacles to the free movement of goods and services, notes in this regard that 2021 will be the first year of application of the Single Market Programme and calls to substantially increase the amount of funding dedicated to the SME objectives, and to have a separate and reinforced budget line on market surveillance; underlines also that completing the digital single market should remain one of the key budgetary priorities and recognises the importance of the Digital Europe Programme in shaping and supporting the digital transformation of Europe’s society and economy, which will be crucial for developing the Digital Single Market, while ensuring the security of European consumers;

5. Notes that cross-border infrastructure is the backbone of the single market, helping goods, services, businesses and citizens to move freely across borders; welcomes therefore the reformed CEF funding to invest and further develop pan-European infrastructures for transport, digital and energy networks; underlines also that eGovernment programmes targetting the modernisation of public administration and addressing digitalisation of public services offer added value for everyone involved in the single market, especially citizens and business, calls therefore for the allocation of additional resources for the full implementation of the Single Digital Gateway, which may be facing delays in multiple Member States;

6. Supports the Commission in its approach to improve and reinforce the new Customs Control Equipment Instrument and the ‘Customs’ Programme; points out, however, that the Commission and the Member States have already accumulated delays in the scheduled implementation of the Union Customs Code and deplores the lack of financial and human resources in Member States; stresses the importance of appropriately financing innovative solutions and modern equipment in customs operations, in the interest of greater efficiency for EU companies and streamlining protection for consumers; welcomes in this regard the increase of appropriations for the budget line 03 05 01 which could give impetus to reducing the delays in implementation of the ‘Customs’ programme;

7.  Stresses that the principle of ‘European added value’ should represent the cornerstone of all EU funded investments; points out that EU funding should be accompanied by measurable results - rather than simple output measurements - that will allow comparison to be made and the individual EU programmes to be ranked by their efficiency;

8.  Reiterates that efficient spending and proper evaluation might create savings, which could finance further activities;

9.  Stresses the importance of full compliance with recommendations of the European Court of Auditors, in the interests of a more effective budget and better value for money for European citizens; stresses that budget should be transparent and understandable for EU citizens and performance-based, in order to increase the efficiency and productivity of public institutions;

10. Asks the Commission to support the pilot projects and preparatory actions proposals within the IMCO remit of responsibilities.

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OPINION OF THE COMMITTEE ON TRANSPORT AND TOURISM (08.10.2020)

for the Committee on Budgets

on the draft general budget of the European Union for the financial year 2021

(2020/1998(BUD))

Rapporteur for opinion: Marian‑Jean Marinescu

SUGGESTIONS

The Committee on Transport and Tourism calls on the Committee on Budgets, as the committee responsible, to incorporate the following suggestions into its motion for a resolution:

A. Whereas the Union transport sector is essential for Union’s economic, social and environmental development and its sustainability and for ensuring the territorial accessibility and connectivity of all regions of the Union, with particular attention for peripheral, rural, insular and outermost regions;

B. Whereas transport will be key to achieving climate neutrality by 2050 and any significant contribution from the transport sector to this goal will require enormous public and private sector-specific financial investments on EU and national level in order to accelerate the shift to sustainable, safe, smart, interoperable, multimodal mobility;

C. Whereas the transport and tourism sectors are among the most hardly hit by the recent COVID-19 crisis; whereas transport has proven vital to providing all necessary goods, including medical and sanitary equipment to the Union population amidst the crisis; whereas the recovery of the transport and tourism sectors are key to the well-functioning of the EU internal market, as well as for connectivity and competitiveness in the EU, including in remote and sparsely populated areas;

D. Whereas it is estimated that the transport sector will experience one of the largest losses in real gross value added in 2020 (approx. 20 %), with some transport modes particularly exposed, such as aviation facing an estimated 60 % loss of passengers over the whole year of 2020; whereas it is estimated that the tourism ecosystem will experience the largest losses in equity losses in 2020 (approx. EUR 171bn, 26.4 % of the total ecosystems losses) and represents 22 % of the investment needs;

E. Whereas it is essential to guarantee that European citizens do not fall victims to the increases in transportation cost related to the COVID-19 crisis;

1. Notes with some concern that the Next Generation EU commitment appropriation as assigned revenue to the 2021 budget amounts to EUR 211 billion; this represents 126 % of the regular Union budget commitment appropriations that are not subject to the same level of parliamentary scrutiny;

2. Deeply regrets the very important reduction of the Next Generation EU contribution to the InvestEU programme from EUR 30.3 billion to EUR 5.6 billion over the next MFF, as envisaged by the July European Council; in consequence, the Council proposal to increase the 2021 yearly budget of the InvestEU programme by EUR 551 million in this budget line nowhere near compensates for the dramatic reduction of the expected EUR 9.645 billion contribution of Next Generation EU to the InvestEU programme for 2021 and is thereby clearly insufficient; insists on the incorporation of the new strategic European investment policy window in the InvestEU programme which includes key investment opportunities for sustainable and safe transport infrastructures, mobility solutions and equipment and for the deployment of innovative technologies, contributing to greater economic, territorial and social cohesion and maximising the impact and the added value of EU financing support; reiterates that the InvestEU programme should be key to supporting operations promoting innovative and digital and sustainable tourism;

3. [02 03 01] Reiterates the crucial role of the Connecting Europe Facility (CEF) in fostering the development of a high-performance trans-European network (TEN-T) that is sustainable, safe, multimodal, interoperable and interconnected across the areas of transport, energy and digital services infrastructure, as well as in achieving the goals of the Green Deal, promoting smart and sustainable mobility, including an increase in rail and inland waterways freight transport; considers unacceptable the drastic reductions in commitments for the Energy and Digital branches of the CEF and the global reduction of the CEF budget as compared to the European Parliament's initial proposal;

Considers particularly unacceptable that, following the July European Council, the commitment appropriations for the CEF Transport 2021-2027 will now be inferior even to that of MFF 2014-2020, and the Council position foresees a EUR 227.3 million cut as compared to the 2021 draft budget, which would be completely insufficient in view of the needs of the sector; therefore requests a CEF budget in line with the European Parliament position on the MFF[13]; recalls that the CEF’s short-, mid- and long-term planning of spending should take into consideration a results-oriented approach and seek EU added value including through synergies between sectors such as transport, energy, tourism and digitalisation;

4. [02 03 01] Deeply regrets the Council conclusions agreed by the Member States on 21 July 2020 pre-allocating EUR 1 384 million from the general envelope of CEF to the completion of missing major cross-border railway links between cohesion countries; recalls that CEF funding is based on the competitiveness of projects for the EU-27 and it is not dedicated to the Cohesion Countries only, therefore it is not possible to pre-allocate funds to a specific project of a limited number of Member States; calls the Parliament to confirm its position allocating the full amount of CEF for the EU-27.

5. [02 10 01] Notes the slight increase in the European Union Aviation Safety Agency (EASA) budget for 2021, but regrets that the allocation foreseen in the Council’s position is below that of the draft budget proposal; reiterates that EASA is classified as a “European Strategic Investment” agency, which, in 2018, received significant new core tasks; recalls the strong performance and investment of resources of EASA within the “Green Deal” context (e.g. EASA Eco-label Programme) and the sanitary crisis-management in 2020 delivering the Aviation Health Protocol in close coordination with the ECDC to enable safe air operations to be restored within the EU and worldwide;

Recalls the EASA efforts, namely, its activities on the green recovery of the EU aviation industry including the renewal of the airlines´ fleets by aircraft with the highest environmental certification requirements; recalls also the importance of air transport and its infrastructures (e.g. airports) in ensuring interoperability with other means of transportation, in particular with rail and its added value in terms of connectivity, with long-haul connections and services to peripheral regions, territories and islands; therefore requests a 16,45 % increase of the agency’s 2021 budget as compared to 2020 and that the subsequent increases be confirmed in the next MFF in order to allow for a stronger EASA, with a view to progressively advancing the Single European Sky initiative, among others;

6. [02 10 02] Notes with satisfaction the significant increase in the European Maritime Safety Agency (EMSA) budget for 2021; requests that the subsequent increases be confirmed in the next MFF in order to strengthen EMSA;

7. [02 10 03] Regrets the decrease in the budget 2021 of the European Union Agency for Railways (ERA), the role of which is crucial to achieving a lasting shift from road to rail and progress in the establishment of the Single European Railway Area; notes that such a decrease is particularly unfortunate since 2021 will be the European year of Rail; therefore requests that the ERA budget at least be maintained at its 2020 level of EUR 27.44 million and that the percentage increase planned in the Draft budget for the following years be applied above that limit; welcomes the fact that the Commission launched a tender for a pilot project on the revitalisation of cross-border night trains; encourages the Commission to further promote the revitalisation of comfortable European night trains as a possible and sustainable alternative to short-distance flights and long-distance car travelling;

8. [05 05 03] Regrets the sharp decrease in the Cohesion fund contribution to the CEF in the area of transport (18,9 % less for commitment appropriations); requests that the contribution is re-established to its 2020 level to reflect the crucial role that Union transport policy and investment plays in promoting and enhancing territorial, social and economic cohesion in the Union; considers that transport projects financed by the European Regional Development Fund (ERDF) and by the Cohesion Fund (CF) must prioritise the development and completion of the TEN-T core and comprehensive networks;

9. [09 03 01] Highlights the importance of the necessary investment for the transport sector under the Just Transition Fund to ensure a fair, inclusive and socially acceptable transition to climate neutrality, in which nobody is left behind; stresses the need to support the up- and reskilling of workers and jobseekers in the transport sector, productive and sustainable investment in SMEs, and investment in smart ,and sustainable mobility, as well as environmentally-friendly transport infrastructure; however; deeply regrets the suggested cuts on MFF and Next Generation EU for the Just Transition Fund recently adopted by Council, which could have an impact on budget 2021;

10. [13 04 01] Deeply regrets that the new commission’s proposal for MFF foresees a 75 % reduction in commitments for military mobility under the transport pillar, which aims to adapt parts of the TEN-T networks for a dual use of the transport infrastructure with a view to improving both civilian and military mobility; this reduction, limits this new policy objective of the Union de facto to merely symbolic actions; requests that the initial level be restored and that the level of commitments for 2021 be set accordingly;

11. [new] Regrets the Commission’s unwillingness to create a specific allocation and specific programme for sustainable tourism at European level, including the allocation of a budget of EUR 300 million, as repeatedly and regularly requested by the European Parliament; reiterates the need to create a new budget line in order to take into consideration a sector that has strong links to transport, has been severely hit by the COVID-19 crisis and is very important for the EU economy, competitiveness, employment and social development;

12. Reiterates the importance of a simpler, more efficient own resources system able to bring a substantial reduction in the proportion of GNI-based contributions and to guarantee the adequate and result-oriented funding of Union spending;

13. Reiterates the important role that European partnerships could play in improving the transport sector’s performance and safety and in fostering a reduction of transport emissions based on technological progress and rules; points out that EU financing programmes such as Horizon Europe could play a key role in promoting partnerships with EU countries, the private sector, foundations and other stakeholders; requests that such initiatives - for example, the creation of a European partnership for the maritime sector - receive adequate funding in order to contribute to those objectives; however, deeply regrets the suggested cuts to the MFF and Next Generation EU for the Horizon Europe research programme recently adopted by Council, which could have an impact on the 2021 budget;

14. Recalls that public investment in infrastructure is particularly sensitive to fraud; stresses the importance of guaranteeing a transparent and competitive tendering process for large-scale transport infrastructure projects financed by the EU;

15. Underlines that poor transport quality contributes to severe under-investment, regional disparities and inclusion gaps that adversely affect the business environment and jeopardise cohesion efforts; insists therefore that investment is particularly needed in areas where transport infrastructure is in a precarious condition; highlights that infrastructure underdevelopment is often caused by poor local institutional capacity and therefore that the investment should be accompanied by substantial technical assistance and supervision from the EU;

16. Notes with concern the absence of resources to boost efforts to complete the comprehensive network, which has a fundamental socioeconomic value especially for the peripheral areas where improving mobility is one of the key factors in avoiding depopulation and economic decline.

17. Stresses the need to rationalise the use of the resources allocated in order to boost and develop the sectors of transport and tourism, as well as the need to promote a strong reduction of bureaucracy in order to cut the implementation times and costs for the European infrastructure network that is still incomplete.

INFORMATION ON ADOPTION IN COMMITTEE ASKED FOR OPINION

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OPINION OF THE COMMITTEE ON REGIONAL DEVELOPMENT (30.9.2020)

for the Committee on Budgets

on the general budget of the European Union for the financial year 2021

(2020/1998(BUD))

Rapporteur for opinion: Andżelika Anna Możdżanowska

SUGGESTIONS

The Committee on Regional Development calls on the Committee on Budgets, as the committee responsible, to incorporate the following suggestions into its motion for a resolution:

1. Calls for a strong and ambitious Union budget for the 2021 to mitigate the socio-economic impact of the COVID-19 crisis and support the recovery of the Union, enhance economic, social and regional convergence, cohesion and resilience, support fair, inclusive and sustainable growth and accelerate  the implementation of core Union priorities and objectives, such as social, economic and territorial cohesion and regional development, climate action, the European Green Deal, the Paris Agreement, the “do no significant harm” principle, the just transition to a carbon-neutral economy by 2050, the Sustainable Development Goals, the European Pillar of Social Rights, digital transformation, innovation and the management of migration on the basis of solidarity, cooperation and shared responsibility; stresses that the COVID-19 pandemic has provided multiple new and unexpected socio-economic challenges that the Union and its Member States need to respond determinedly and provide fair and effective solutions at both Union and Member State level;

2 Reiterates its position for a 2021 budget of EUR 192,1 billion in current prices in commitment appropriations and its call for major additional appropriations on top of this position in order to respond to the socio-economic impact of the COVID-19 crisis; deplores, in this regard, the lack of ambition and decisiveness shown by the Commission in its 2021 Draft Budget proposal, which represents a reduction of 9,8 % compared to the 2020 budget in terms of commitments and incorporates significant cuts to core Union policies and programmes, such as cohesion, regional development, agriculture, SMEs support, health, research and innovation; underlines that these cuts cannot be considered counter-balanced by the Next Generation EU top-ups and calls for the significant enhancement of the above policies and programmes in the 2021 budget;

3. Reminds that cohesion is a shared competence between the Union and Member States and that as a main and efficient public investment policy it will play a major role in mitigating the economic and social impact and it will also play a crucial role in the recovery path from the COVID-19 pandemic consequences; emphasizes that cohesion is fundamental and most recognised policy that has shaped the Union we know today, based on a solidarity and its goal is to reduce remaining economic, social and territorial disparities between Member States along with strengthening economic, territorial and social resilience within the Union and regions for a more harmonious development that will help the Union to remain globally competitive and that the achievement of these objectives is possible only with appropriate funding; emphasizes in that context that programmes managed under European Structural and Investments (ESI) Funds support and contribute significantly to sustainable solutions for fair and inclusive economic growth, the European Green Deal, investments and competitiveness, as well as high quality, safe and secure working and living conditions of the citizens, including equal opportunities, social justice and non-discrimination; underlines the significant role of ESI Funds in means of achieving an innovative and smart economic transformation and ecological transition, toward energy and resource efficient and climate neutral Union: stresses that in order to maximise the impact of ESI Funds, it is essential that Member State authorities at all levels work closely with each other and in partnership with employers, trade unions, academics, non-governmental organisations and other stakeholders;

4. Notes that the budget for the year 2021 is the first year of the new programming period 2021-2027 and that it should reflect the principles and priorities of a revised and reoriented Multiannual Financial Framework (MFF) and contribute effectively to the mitigation of the social and economic and health impact of the COVID-19 pandemic in a fair, inclusive, sustainable and resilient way, while considering budgetary rules and principles that will ensure immediate and effective implementation tailored for the specific needs of the regions; reminds in this context that necessary regulation and follow up documents must be adopted as soon as possible;

5 Stresses the need for enhanced and targeted emergency measures to swiftly and effectively support citizens, workers, the self-employed and sectors hit harder by the COVID-19 crisis in order to avoid even wider divergences among Member States and regions; calls for significantly increasing resources to fight social and gender inequalities, poverty and unemployment, paying particular attention to the youth and vulnerable groups;

6. Acknowledges the European Council agreement on the European Union Recovery Instrument (Next Generation EU) as an important first step towards a fair, inclusive, sustainable and resilient recovery of the Union; deplores, however, the massive cuts to the grant component of the Next Generation EU in the final agreement that seriously upset the balance between grants and loans and have led to massive cuts to the top-ups for Horizon Europe, InvestEU, Rural Development (EAFRD), REACT-EU and the Just Transition Fund (JTF), the withdrawal of top-ups for EU4Health, the Neighbourhood, Development and International Cooperation Instrument (NDICI) and humanitarian aid, as well as the complete cancellation of the Solvency Support Instrument; stresses that these cuts will seriously undermine the recovery efforts;

7. Underlines the necessity to provide a sufficient level of payment appropriations in the budget for the year 2021 that will take into account the volume of outstanding commitments at the end of 2020 in order to avoid the accumulation of unpaid claims from MFF 2014-2020 and to finance the frontloading of expenditure related to COVID-19 pandemic; notes that due to the delays in implementation of the programming period 2014-2020 most of the relevant payments will be settled in years 2021-2022; underlines the increased accuracy of the Member States forecasts which need to be fully taken into account in the budget for the year 2021; stresses therefore that a credible payments plan for the whole MFF 2021-2027 is needed, providing for a sufficient payments in its first years with possibility to carry unused payments forward to the next years with the help of special instruments placed over and above the MFF payments ceilings;

8. Reiterates that the revision of the Union’s own resources system and the introduction of a basket of new own resources as of 1 January 2021, based on a legally binding timetable, is extremely essential to meet the increased financial needs of supporting the recovery and delivering other Union priorities and objectives; urges Member States to swiftly agree on an increase of the own resources ceilings and to adopt rapidly the legislative proposals that will introduce new own resources;

9. Welcomes the enhanced flexibility and simplified programmes under cohesion policy – increased co-financing, anti-crisis use of EU funds - introduced in March and April 2020 and believes that it should be maintained also in MFF 2021-2027 as a mechanism that will act as a safeguard of the Union economy during turbulent and unpredictable times, without prejudice to the fundamental principles and objectives of cohesion policy and with full respect of the applicable rules for the sound management of the resources and for the transparency of their spending;

10. Takes note of the recovery measures approved and welcomes the measures already approved such as the extension of the EU Solidarity Fund to cover public health emergencies that will make available almost EUR 800 million in 2020 and the Corona Response Investment Initiative (CRII and CRII+) that aim at providing EUR 8 billion of liquidity to accelerate up to EUR 37 billion of European public investment in order to support citizens, regions and countries hit hard by the Coronavirus pandemic;

11. Acknowledges that the legislative resolution of 17 April 2020[14] that approved specific measures to provide exceptional flexibility for the use of the ESI Funds in response to the COVID-19 outbreak was an important measure to take; notes that this will result in the acceleration of their implementation and therefore in increased needs of payment appropriations which need to be reflected in the budget for the year 2021; considers that the specific measures which have yielded remarkable results should continue to be used;

12. Welcomes the Commission’s proposal not to claim from the Member States the reimbursement of unspent pre-financing paid at the start of the year, i.e. the provision that Member States would not need to return the funds remaining from the planned expenditures to the Commission as this could create negative consequences in the implementation of developing projects, while acknowledging that it may create a financial gap in the 2020 budget (pre-financing constitutes the assigned revenue for the EU budget) and in consequence may result in increased need of payment appropriations in the budget for the year 2021; underlines the need for sufficient pre-financing for the cohesion programmes of MFF 2014-2020 at the level of 3 % stemming from legislative acts in force;

13. Underlines the importance of mainstreaming the gender dimension into the EU budget, including cohesion policy, since it is an effective way to bridge the gap women still suffer from in our society, including their participation in the labour market; calls for the development of gender budgeting tools at Union level;

14. Welcomes the proposal for the creation of the REACT-EU programme that will make additional funds available to the ERDF and the ESF as well as to the FEAD in the fight against the effects of the COVID-19 pandemic; calls for the rapid implementation of the programme and for payments to start as early as possible in 2021;

15. Calls on the Member States to share clearly and determinedly their post-crisis  ambitions and expectations as well as acknowledge their shared role in preparation for a coordinated EU approach which will consequently enable high-quality and measurable results that will lead to a long-term sustainable growth and overall prosperity;

16. Calls for more direct funding for European cities as important drivers of recovery and tackling climate-related issues.

INFORMATION ON ADOPTION IN COMMITTEE ASKED FOR OPINION

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OPINION OF THE COMMITTEE ON AGRICULTURE AND RURAL DEVELOPMENT (24.9.2020)

for the Committee on Budgets

on the draft general budget of the European Union for the financial year 2021

(2020/1998(BUD))

Rapporteur for opinion: Petri Sarvamaa

SUGGESTIONS

The Committee on Agriculture and Rural Development calls on the Committee on Budgets, as the committee responsible, to incorporate the following suggestions into its motion for a resolution:

1. Regrets that, in the proposed revised ceiling for the new heading 3 of the Multiannual Financial Framework (MFF) for the period 2021-2027, the major categories of the Common Agricultural Policy (CAP) spending are likely to be cut in 2021, namely direct payments, market measures and rural development; recalls Parliament’s previous resolutions asking for CAP funding for the period 2021-2027 to be maintained, in real terms, at least at current levels; points out that a number of agricultural sectors have been hard hit by the COVID-19 outbreak and that possible cuts will lead to a deepening of the crisis caused by that outbreak, extending it to other sectors;

2. Regrets the proposed cuts to the CAP budget in the Council’s MFF proposal especially in light of the new demands that will contribute to the Union’s climate and biodiversity objectives in line with the targets set by the Paris Agreement, and also in the fields of food security, economic growth, territorial and social balance, health and economic crises such as that caused by the COVID-19 outbreak, as well as other factors affecting food security; recalls that the decreases in the CAP budget have continued constantly and the funds from the CAP budget have been transferred to other headings;

3. Agrees with the draft general budget for 2021 that the fact that new reform of the CAP will apply only after 2021 must not come at the cost of failing to deliver on the European Green Deal; expresses hope that while in 2021 the CAP will still be implemented in accordance with the 2014-2020 rules, the choices and measures implemented on the ground will lead to more positive changes and set us on the path of truly sustainable transition including for the sake of farmers, food security, and the future of Union farming;

4. Takes note of the EUR 55 182 million in commitments and EUR 54 879,9 million in payments for agriculture; is concerned about the severe decrease of 7,4 % in European Agricultural Guarantee Fund (EAGF) appropriations (EUR 3 231 million less in commitments and EUR 3 215 million less in payments) compared to the budget for the financial year 2020; notes that the European Agricultural Fund for Rural Development (EAFRD) appropriations are increased to EUR 15 002,9 million in commitments (+2,1 %) and EUR 14 715 million (+12,2 %) in payments compared to the budget for the financial year 2020; takes note of the net transfer of EUR 753,9 million from the EAGF to the EAFRD;

5. Urges the Council to allow the Union to meet its commitments in providing sufficient funding for a safe, high-quality food supply, climate action, environmental protection and for the Just Transition Mechanism and the Just Transition Fund, which the agriculture sector needs to benefit significantly from in order to reach the targets of the European Green Deal; stresses that increased farming sustainability requirements to help meet climate and environmental targets in 2030 will necessitate substantial investment by farmers to avoid a decline in production and revenue caused by higher costs, and that this cannot be achieved without adequate CAP funding;

6. Draws attention to the fact that the COVID-19 crisis has had a severe impact on numerous Union holdings and has highlighted the importance of Union food production and supply; stresses the need for increased access to funding for the acquisition of state-of-the-art technologies in agriculture; recalls that food security, and food chain sustainability are priorities and require investments and support to farmers and small and medium-sized enterprises (SMEs) in rural areas; highlights therefore the need for a strong EAFRD and swift utilisation of the Next Generation EU funds in 2021, given the urgency of frontloading Union commitments from that new recovery instrument;

7. Highlights that, according to the Court of Auditors' opinion No 5/2020[15], the link between performance and funding in the Just Transition Fund  is relatively weak and there is a significant risk that further spending will be allocated to finance the unsuccessful transition repeatedly; stresses that a sound needs analysis would support better allocation of the Union’s financial resources and target the objectives to be achieved;

8. Notes and deplores the fact that the draft general budget for 2021 fails to indicate the contribution of different instruments, including the CAP, to financing biodiversity; reiterates that the Union should track its biodiversity-related expenditure to fulfil its reporting obligations under the Convention on Biological Diversity;

9. Takes the view that the cut to appropriations for the promotion of agricultural products (EUR 4 million less, namely a 2,1 % cut) and the lack of appropriations for intervention measures in agricultural markets such as private storage and public intervention (EUR 10 million) seem removed from the situation for agricultural markets, which are still unstable, and from the need for the production and consumption of agricultural products on the single market and on external markets to be revived;

10. Calls, with a view to contributing to the recovery of the Union's agricultural sectors and rural areas, for part of the recovery plan appropriations under the EAFRD for 2022, 2023 and 2024 to be made available within the framework of advance payments from 2021;

11. Stresses that the Commission, when revising the draft general budget for 2021 through the amending letter, needs to adjust its figures upwards in order to address the market crises in certain key Union agricultural sectors and rural territories negatively impacted by the COVID-19 crisis and to contribute to their recovery; points out that a number of support measures to combat the effects of the COVID-19 crisis have not been implemented in certain Member States and need to be more closely tailored to the specific needs of the various agricultural sectors;

12. Stresses that there has been embezzlement of Union agricultural aid; underscores, in that context, the importance of tying Union agricultural aid in future to a review of the rule of law in the Member States;

13. Highlights the importance of small farms in rural areas, which require particular attention and increased financial resources;

14. Recalls the importance of the Union budget, through rural development, and Horizon Europe and the European Innovation Partnership (EIP) programmes in supporting research and innovation in food, agriculture, as well as fossil-substituting and renewable bioeconomy in the transition to a more sustainable and future-proof land use and a zero-carbon, resource- efficient circular economy;

15. Stresses the necessity of dedicating a significant share of the funds from the Horizon Europe programme to the agri-food sector, especially in the broader context of the “Farm to Fork Strategy”; is convinced of the importance of research, development and innovation in that sector and of ensuring that the results of research and innovation reach farm level; supports increasing the programme’s appropriations to ensure safe, high quality food and innovative forms of agriculture in the Union and further recalls that proper advisory services for farmers and other rural operators play an important role in reaching those targets;

16. Reiterates its concern about the market and budgetary consequences of a “no-deal” withdrawal of the United Kingdom from the Union; requests the allocation of additional resources for market and policy measures in order to ensure adequate means are readily available in the event of further market disturbance; strongly opposes any unexpected cut in CAP allocations in 2021 in the event that there is no agreement between the Union and the United Kingdom;

17. Recalls that all new sustainability requirements for producers should be properly funded and supported as the Commission considers the CAP to be an appropriate framework to contribute to the relevant objectives of the European Green Deal; welcomes the aim to determine the best arrangements for setting minimum mandatory criteria for sustainable food procurement in the third quarter of 2021 and calls for sustainability aspects to be better taken into consideration;

18. Criticises the fact that, in the Commission proposal, the budget for the POSEI programme is being cut by EUR 9 million, namely a 3,9 % reduction, despite the Commission's commitments to maintaining the same level of support for the Union's outermost regions; calls for the maintenance of, at least, the current level of support, as provided for in Regulation (EU) No 228/2013 of the European Parliament and of the Council[16]; stresses the vital importance of the POSEI programme for the maintenance of the agricultural activity and for the supply of food and agricultural products in the outermost regions, which must be provided with adequate resources; recalls the specific socio-economic problems of those regions as a result of their geographical situation, in particular their remoteness, insularity, small size, difficult topography and climate, as acknowledged in Article 349 TFEU;

19. Suggests ensuring sufficient funding for the use of new breeding techniques as well as their development and research to improve the sustainability and competitiveness of agriculture and its adaptation to climate change;

20. Considers that the trade agreement between the Union and Mercosur will cause additional challenges for many agricultural sectors, especially meat production, and reminds the Commission of the need to maintain a level playing field in the agricultural sector; points out the need to cope with possible similar negative effects caused by other trade agreements and tariff measures imposed by third parties and calls for the necessary budgetary resources for market measures for the impacted sectors;

21. Recalls that improving food security and the resilience and sustainability of the food chain requires investments in farmers, cooperatives and SMEs and points out that the ongoing COVID-19 crisis has emphasised the strategic role that agriculture plays in avoiding a food crisis, by providing safe and high-quality food at affordable prices; welcomes that agriculture is among the recipients of the investment support through the EAFRD in the Recovery Package; demands that the appropriations of the Recovery Package are also implemented as from 2021; further considers that agriculture and food chain security should not be negatively impacted by onerous requirements; welcomes the Commission’s intention to draw up a food sector contingency plan for times of crisis in the fourth quarter of 2021;

22. Urges Member States to tackle the demographic problem and lack of generational renewal faced by the agricultural sector and further insists to give sufficient support measures for young farmers and gender equality in rural areas;

23. Stresses that, without ambitious revision of the financing and functioning of the agricultural crisis reserve, the Union will not be able to effectively and swiftly respond to further market disruptions; reiterates, therefore, Parliament's proposal to revise the financing and functioning of the agricultural crisis reserve as part of the negotiations on the regulation on the CAP transition;

24. Welcomes the establishment of a crisis reserve fund of EUR 450 million, in 2018 prices, per year and further insists that using the fund should not result in corresponding cuts in direct payments for later years;

25. Points out that the sanctions regarding the Russian military intervention in Ukraine are still justified despite their negative impacts on the agricultural sector; asks for a proper allocation of the budget to mitigate those impacts;

26. Demands that import standards on agricultural products from outside the Union need to be equal to Union standards and recalls that in the recent Farm to Fork strategy the Commission underlined that imported food must continue to comply with relevant Union regulation and standards; demands compensation from the budget for the Union's farmers if there is a gap in production standards;

27. Regrets that bioeconomy has been side-lined in the European Green Deal initiative and further insists that the Union’s bioeconomy strategy is followed and the funding is sufficient for the actions to be taken;

28. Calls for adequate financing of forestry measures through the Union budget, such as sustainable forest management, taking into account all of the economic, social and environmental aspects of the forest-based value chain is the key to step up the fight against climate change; acknowledges the need for sustainably managed forests;

29. Underlines the importance of carbon farming to reach the European Green Deal targets; emphasises the importance of funding for new pilot projects regarding the carbon farming initiatives in 2021;

30. Emphasises that digitalisation is the key to modernising agriculture, making it more competitive and helping it in adaption to climate change; calls on the Commission to provide adequate budgetary allocations for constructing and improving rural broadband; further recalls that in the Farm to Fork strategy the Commission aimed to accelerate the roll-out of fast broadband internet in rural areas to achieve the objective of 100 % access by 2025;

31. Recalls the importance of information campaigns, improved labelling and education to help citizens in transforming their consumption habits towards more sustainable agricultural products produced in the Union; suggests promoting schemes for animal welfare, healthy food and nutrition;

32. Notes that rural development funds in the Recovery Package play an important role in funding CAP Pillar II; however deplores the fact that the support is temporary and lasts only until 2023;

33. Calls for a better implementation and renewal of animal welfare policy to achieve concrete results in improving the welfare of animals; points out that many Member States do not comply with the current rules; suggests proper allocation of budget to monitor and enforce the obligations;

34. Insists that the COVID-19 crisis measures supporting agricultural sectors need to continue in 2021; further demands for labour mobility to be taken into account to tackle possible long-term labour and other agricultural inputs shortage in Union farming;

35. Is concerned about possible price spikes and shortages of important food products due to the COVID-19 crisis; calls on the Commission and the Member States to monitor the price volatility of agricultural products, which has adverse effects on farmers' incomes as well as consumers, and to react punctually and effectively when needed;

36. Reaffirms the vital importance of the Union school fruit, vegetables and milk scheme to tackle the challenges of obesity and malnutrition created by unhealthy diets in the Union; asks the Commission to cut the red tape involved in the scheme and stresses the need to promote healthy eating habits in children and the consumption of fruit, vegetables and plain milk;

37. Recalls that the Commission has pledged EUR 20 000 million a year to tackle the possible new sustainability requirements imposed by the biodiversity strategy; insists that the funding must come from outside the CAP budget; points out that meeting those objectives must not reduce food security or the livelihood of rural areas in the Union; reiterates the importance of maintaining biodiversity and further recalls that responsibility for this lies not just with farmers and forest owners but with all of society; underscores the importance of voluntary protection measures.

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FINAL VOTE BY ROLL CALL IN COMMITTEE ASKED FOR OPINION

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OPINION OF THE COMMITTEE ON FISHERIES (2.10.2020)

for the Committee on Budgets

on the draft general budget of the European Union for the financial year 2021

(2020/1998(BUD))

Rapporteur for opinion: Pierre Karleskind

SUGGESTIONS

The Committee on Fisheries calls on the Committee on Budgets, as the committee responsible, to incorporate the following suggestions into its motion for a resolution:

1. Recalls the economic, social and environmental aspects of fisheries, aquaculture and maritime affairs; stresses their vital role in boosting the development of the blue economy and their contribution to developing and revitalising coastal areas;

2. Stresses that the EU budget for 2021 should include enough commitment and payment appropriations to meet the financing needs of the common fisheries policy, such as the achievement of MSY and the landing obligation, as well as the challenges that the sector is facing like Brexit and the generational renewal ; asserts that, for fisheries and aquaculture to continue to be viable in the long term, increased funding for these industries is needed, as well as for the protection and restoration of marine ecosystems ; believes that the budget and policies for these sectors should help them to contribute to the EU’s new goals, particularly those set out in the Green Deal, the new industrial strategy, the ‘Farm to Fork’ strategy and the EU Biodiversity Strategy for 2030; takes the view that maintaining the competitive position of the fisheries sector must go hand in hand with achieving these goals, any proposal must therefore be subject to an impact assessment for the fisheries sector;

3. Insists on the fact that the year 2021 will be a pivotal year to translate the objectives of the Green Deal in the fishing sector, that this fact alone would require a significant increase in the budget allocated to the EMFF for this year; recalls that the uncertainties related to the Covid-19 crisis also require increased funds ; Deplores, therefore, the lack of ambition of the Commission proposal and the Council's position on the 2021 budget allocated to the EMFF; calls on the Commission and the Council to take all these factors into account and to substantially increase their position;

2. 

4. Stresses the importance of putting right the economic and social damage caused by the COVID-19 pandemic, which has hit hard the entire fisheries and aquaculture sector, throughout the whole seafood supply chain, including processors, retailers, distributors.  Considers that the serious health situation and its consequences call for a fresh ‘aid package’ to complement the previous ones and deploy new exceptional financial support to be made available immediately, given that the pandemic and its economic and social effects are not going away;

5. Recalls that at the peak of the confinement caused by the COVID-19 pandemic, the fishing sector, in particular small-scale coastal fishing vessels, continued to operate maintaining the regular supply of local markets, guaranteeing Union citizens access to healthy marine food, particularly in isolated coastal areas and regions where supply chains were hampered by logistical constraints

6. Welcomes the action taken by Parliament and the Council to amend Regulations (EU) No 508/2014 and (EU) No 1379/2013 as regards specific measures to mitigate the economic and social impact of the COVID-19 outbreak in the fisheries and aquaculture sector; believes that the Commission must assess in real time how the health and economic situations unfold and, if necessary, consider extending these measures beyond 31 December 2020 if the pandemic continues; believes that the Commission needs to set up a system to monitor these measures to ensure proper and timely use of the funds and that there are no barriers to accessing them;

7. Welcomes the Commission’s prompt and ambitious response to the economic crisis, specifically the far-reaching economic recovery plan that it proposed on 27 May 2020; also welcomes the Commission’s proposal to increase the 2021-2027 budget for the European Maritime and Fisheries Fund, fisheries and aquaculture by EUR 530 million over its initial proposal; stresses, however, that this increase will still leave the budget below the amount called for by Parliament; deplores the European Council position of 21 July 2020 reducing by EUR 32 million the EMFF budget initially proposed by the Commission for 2021-2027;

8. Deplores the worrying indications that the likelihood of there being no agreement between the European Union and the United Kingdom, including a fisheries agreement, by the end of the transition period, is increasing ; Underlines the need to financially support the EU fisheries sector to face the severe social and economic consequences in such scenario ; Takes note of the European Council's proposal to create a Brexit Adjustment Reserve to assist the Member States and sectors hardest hit by Brexit; Considers that a sufficient part of this fund should be earmarked for fisheries-related support; considers, however, that the creation of such a fund should in no way justify a reduction of the budget allocated to the EMFF;

9. Criticises the fact that the implementation rate for the 2014-2020 EMFF is still far too low – only 35% – six years after it was adopted; stresses that this poor rate is partly due to national and European red tape;

10. Calls on the Commission to provide Member States with all necessary assistance to make using the European Maritime and Fisheries Fund (EMFF) as simple and efficient as possible;

11. Stresses the importance of ensuring sufficient financial resources for the collection, management, use and exchange of data in the fisheries sector;

12. Stresses the need to increase investment in more selective fishing gear by increasing research and development as well as by financially supporting fishermen to invest in new selective fishing gear.

13. Stresses the need to maintain a sufficiently high level of funding for the small-scale coastal fisheries sector when planning the budget;

14. Stresses the importance of controls on fishing activities; believes that these controls must remain a priority in the financing of the common fisheries policy, especially since new rules to harmonise and improve the fisheries control system in the Union are expected to be approved soon;

15. Reiterates that the European Fisheries Control Agency (EFCA) must be given additional funding and equipment to carry out its activities properly and to ensure that the EU meets its sustainable fishing goals; including digitization and adaptation to new technologies, as well as the investment and the development of the control and inspection techniques and the assistance to the Commission, the Member States and specific institutions, also taking into account the revision on the Fisheries Control Regulation now being negotiated;

16. Takes the view that the policy of reducing staff numbers at all EU agencies that has been pursued in recent years must be assessed; recalls that the budget implementation rate for the EFCA is more than 99%;

17. Stresses that the next EMFF should be used to further improve animal welfare standards in fisheries and aquaculture, following the EU citizens Special Eurobarometer 442 report on Attitudes of Europeans towards Animal Welfare;

18. Stresses that generational renewal is one of the European fishing sector’s priorities; considers that Member States should draw on the EMFF and the European Structural Funds to finance measures that would allow for greater safety and more attractive working and living conditions on board fishing vessels, as well as the introduction of programmes specifically designed to help young people to take up careers in fisheries, to make the sector more diverse and to encourage people from under-represented groups, particularly women, to join the industry, highlights in this regard the importance of encouraging more involvement of women into the various professional categories and making women more visible in the activities they are currently carrying out;

19. Stresses the need to provide substantial support for disadvantaged coastal areas and European outermost regions.

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OPINION OF THE COMMITTEE ON CULTURE AND EDUCATION (2.10.2020)

for the Committee on Budgets

on the general budget of the European Union for the financial year 2021

(2020/1998(BUD))

Rapporteur for opinion: Romeo Franz

SUGGESTIONS

The Committee on Culture and Education calls on the Committee on Budgets, as the committee responsible, to incorporate the following suggestions into its motion for a resolution:

1. Emphasises the importance of Erasmus+, Creative Europe and European Solidarity Corps programmes for both social cohesion and economic development within the Union;  deeply regrets that the proposal of the Commission did not follow the promises made regarding increases in the budget allocated to those programmes, namely tripling the budget for the Erasmus+ programme, or responding to the will of the European Parliament and all the stakeholders to at least to double the budget for the Creative Europe programme; takes the view that the Council's position, to further reduce the budget for the programmes proposed by the Commission, is unacceptable and particulary irresponsible, given the dramatic consequences of the COVID-19 crisis on European cultural and creative actors; takes the view that the economic crisis triggered by the COVID-19 pandemic should not adversely affect investments of a social, educational and cultural nature;

2. Recalls that the Erasmus+ programme is the symbolic and one of the most successful Union programmes with strategic investment in the Union's future, which supports education and training opportunities and youth exchanges as well as sports, especially for people with disabilities across Europe; it helps increase European integration, social cohesion and the building of a belonging to Europe and life-long cross-border networks; takes the view that priority should be given to promoting inclusion and increasing the number of participants in the next programme period; Erasmus+ programme is therefore a crucial investment in the future of the Union; insists on the fact that without tripling the budget available as sought by the Parliament, no new Commission initiatives can be taken on board, as the Parliament has already stated; recalls that insufficient funding for the Erasmus+ programme will endanger its capacity to reach its new objectives and to uphold the challenges of becoming more inclusive and ecological;

3. Deeply regrets that the proposal of the Council on the Creative Europe programme is lower than the initial proposal of the Commission and far from meets Parliament's expectations and those of the cultural and creative sectors; recalls that a doubling of the budget for the programme compared to the 2014-2020 multiannual financial framework is necessary to provide targeted support to the cultural and creative sectors and to fully finance the ambitions and new priorities of the programme, as the sectors require proper investment to foster job creation and financing to complement national schemes while undertaking their ecological transition; recalls that the cultural and creative sector is one of the most hit by the COVID-19 pandemic and calls for adequate answers and financing to reduce the substantive losses of the sector due to the unforeseeable closure of venues during the pandemic;

4. Recalls that for the European Solidarity Corps programme, any reduction in funding compared to the Commission proposal impacts on the extent to which the programme can offer opportunities; takes that view that it is necessary, especially in times of social and economic uncertainty, to provide young people with opportunities to get involved in society, to develop on a personal level and to gain work experience; insists therefore that adequate funding be allotted to the programme;

5. Is concerned that the inclusion of the previous Europe for Citizens programme into the new Rights and Values programme, which itself suffers from considerable cuts under the proposal of the Council, may lead to a significant reduction in the budget dedicated to “Citizens engagement and participation”; insists that, under the next MMF, at least EUR 500 million need to be allocated to “Citizens engagement and participation”;

6. Notes that, since 2010, relations between the Commission and Euronews have been covered by successive Framework Partnership Agreements (FPA), implemented through annual action programmes; stresses that the current FPA was signed in 2017 with a duration of four years and that, according to the independent performance audit made in 2016, ‘Euronews is providing good-quality, independent reporting on EU affairs’[17];calls on the Commission to publish more recent documents at its disposal to establish full transparency; considers it essential, in light of the European Court of Auditor’s recent rapid case review, to explore ways to further improve Multimedia Actions’ line in terms of efficiency and accountability;

 7. Calls on the Commission to bring about more transparency in the allocation of funds under the various programme components and sub-programmes of the Erasmus+, Creative Europe and European Solidarity Corps support programmes, by creating new budget lines; also reiterates its request to the Commission to increase transparency in its use of the budget assigned to multimedia activities, in particular by creating a series of new budget lines in connection with the measures;

8. Reiterates its request to the Commission to improve its external communications and outreach activities; sees the need, in that connection, for greater diversification of the activities supported under the budget line for multimedia measures and to work with new or different cooperation partners with a view to providing citizens with independent and extensive information on the Union's affairs; deeply regrets that the Commission still has not responded to Parliament's call for a comprehensive review of the budget line for multimedia measures, particularly with regard to the framework contract with Euronews;

9. Stresses that Europe's diverse cultural landscape has suffered considerably as a result of the measures introduced to curb the COVID-19 pandemic and that, without public investment and aid, the very existence of many companies and organisations in the cultural and creative sectors is at risk; stresses that the COVID-19 pandemic has exposed many weaknesses in our education systems and that a coordinated investment plan is needed to improve those systems; calls on the Commission, accordingly, to give particular consideration to both the cultural and creative sectors and the education sector under the European Recovery Programme.

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OPINION OF THE COMMITTEE ON CIVIL LIBERTIES, JUSTICE AND HOME AFFAIRS (1.10.2020)

for the Committee on Budgets

on the draft general budget of the European Union for the financial year 2021

(2020/1998(BUD))

Rapporteur for opinion: Karlo Ressler

SUGGESTIONS

The Committee on Civil Liberties, Justice and Home Affairs calls on the Committee on Budgets, as the committee responsible, to incorporate the following suggestions into its motion for a resolution:

1. Deplores that the proposed commitment appropriations for the “Citizens, Equality, Rights and Values Programme” at EUR 90 600 000 are much lower than initially requested by the Parliament, and represent a decrease of 9,9 % compared to 2020; requests, in line with the first reading position of the Parliament adopted on 17 April 2019, that commitment appropriations are increased to EUR 265 000 000 and that a new budget line to “Protect and promote Union values“ (EUR 120 022 637 in commitment appropriations) is created; calls, in line with the partial agreement reached with Council, for an increase in commitment appropriations under the “Daphne” budget line to EUR 35 030 020 and to earmark EUR 27 340 504 of this amount for the fight against gender-based violence by creating a subline “Preventing and combating all forms of gender-based violence against women and girls and domestic violence”; calls further for an increase in the commitment appropriations of the budget line “Promote citizens engagement and participation in the democratic life of the Union” to EUR 70 604 598, to rename the budget line “Promote equality and rights”  to “Promote equality, rights and gender equality” and to earmark EUR 10 252 689 to “Promote gender equality and gender mainstreaming” by creating a new subline;

2. Notes the small increase  of 0,5 % in the commitment and payment appropriations of the Justice programme; requests, in line with the position of the Parliament on the financial envelope for the Justice programme included in its resolution of 14 November 2018 on the Multiannual Financial Framework 2021-2027, to further increase the funding of that programme in 2021 by a total of EUR 6 800 000 to EUR 50 500 000; stresses that judicial cooperation, judicial training and effective access to justice should be strengthened with the help of the relevant Union JHA agencies;

3. Is concerned about the reduction in commitment appropriations for the Asylum, Migration and Integration Fund (AMIF) compared to 2020 given the continuous pressure faced by national authorities for asylum, gaps regarding the proper reception of asylum seekers and delays in the asylum procedures in the Member States; calls for a 14 % increase in commitment and payment appropriations for the AMIF to provide sufficient resources;

4.  Calls further for the creation of separate budget lines in respect of the future Asylum, Migration and Integration Fund and the future Border Management and Visa Instrument for each of the specific objectives of those programmes to ensure adequate funding for all objectives of the programmes and to provide better readability and transparency regarding the annual allocation of financial resources, thereby facilitating scrutiny of the implementation of the programmes;

5. Is deeply concerned by the continuing loss of lives in the Mediterranean; is of the opinion that a more long-term approach to search and rescue (SAR) operations is necessary as SAR cannot be exclusively left to non-state actors; considers that the Commission should present a legislative proposal to set up a Search and Rescue Fund to support SAR missions in the Mediterranean; proposes, therefore, the creation of a new budget line for that fund to encourage the saving of lives and to show solidarity among Member States in the carrying out of SAR operations in accordance with international law and fundamental rights, including the right to life and the principle of non-refoulement;

6. Is concerned that the significant funding cuts proposed for the Exchange, Assistance and Training Programme for the Protection of the Euro against Counterfeiting (the ‘Pericles IV programme’) would put the success of the programme as a whole at risk; considers that the funding for 2021 should be increased to EUR 950 000 to ensure that the programme can make a meaningful contribution to the fight against counterfeiting of the euro and related fraud;

7. Takes note of the proposal to increase the appropriations of the  European Union Agency for Law Enforcement Cooperation (Europol) by 11,5 %; is concerned that Europol’s development and operational activities in 2021 will be impeded without an increase in statutory staff;  recalls that  Europol  is requested to provide increased analysis and operational support, tools and innovation to Member States’ law enforcement authorities within the framework of its current mandate, and, upon request, has recently launched new initiatives such as the European Financial and Economic Crime Centre and the Innovation Lab, which require additional funding; also stresses the need for Europol to adapt to the surge of new activities in recent years and to the changes in the criminal landscape during the Covid-19 outbreak; expects Europol’s tasks to be further extended in 2021 with the upcoming revision of the Europol’s mandate but stresses that a decision on additional funding can be taken only at the end of the legislative process; considers, therefore, that  EUR 184 900 000 should be provided to Europol in line with its request; requests that a further 63 posts be added to Europol’s establishment plan;

8. Notes the small increase of 3 % in commitment and payment appropriations of the European Union Agency for Law Enforcement Training (CEPOL); requests an additional funding increase from EUR 10 400 000 to EUR 16 264 976 and an additional 21 posts in CEPOL’s establishment plan; considers that the additional resources should allow CEPOL to strengthen training in diversity and to keep up with the demands of  Member States;

9. Considers that the small funding increase of 1,8 % proposed for the European Monitoring Centre for Drugs and Drug Addiction (EMCDDA) will not be sufficient for it to comply with its legal obligations deriving from the Staff Regulations as well as its rental contracts; emphasises, moreover, that additional funding should be provided for EMCDDA to fully deploy its operational capacity and to effectively respond to the most recent developments in the drug phenomenon, including the effects of Covid-19 outbreak; highlights that drug retail value in Europe is estimated at EUR 30 billion per year; requests, therefore, to increase EMCDDA’s budget to EUR 18 100 000;

10. Considers the proposed increase of appropriations for the European Union Agency for Criminal Justice Cooperation (Eurojust) insufficient in light of the challenges faced by Eurojust with regard to the continuously growing caseload;  requests that Eurojust be provided with 21 additional posts and that its budget be increased accordingly to EUR 44 068 531;

11. Takes note of the estimation of the European Public Prosecutor’s Office (the ‘EPPO’) that it will process information equivalent to 4,300 cases from which it will generate at least 2,000 own criminal investigations in its first year of operation; expects the workload to increase further during the coming years, to up to 3,700 own criminal investigations in 2027, partly due to the risks of increased fraud affecting the Union’s financial interests inherent in the overall increase of Union funding in the next MFF and the Recovery Plan; recalls that the EPPO is a prosecution office with mandatory competences; is deeply concerned about the low funding level proposed in the draft general budget of the European Union for the financial year 2021 and the amount of staff representing only half of the EPPO’s request; considers that such a proposal would significantly affect the ability of the new body to start its activities and deliver on its mandate; stresses that a substantial funding increase to EUR 55 500 000 will be required to allow the EPPO to meet its legal obligation to translate a huge volume of documents that are transmitted to judges at national level, to cover recruitment and staff related expenditure, and to provide it with the requested 140 European Delegated Prosecutors and 219 staff members;

12. Regrets the reduction  of 0,4 % in the budget of the European Union Agency for Fundamental Rights (FRA); urges that FRA’s commitment and payment appropriations be increased to EUR 24 679 000 to enable FRA to continue to provide quality work which has proved useful for Union policy-making; considers it necessary to support FRA in its extra efforts to monitor fundamental rights during the Covid-19 crisis, particularly in view of a possible second wave during 2021; calls for 4 posts to be added to FRA’s establishment plan; highlights that without adequate financial and staff resources, FRA may not be able to implement projects that respond to identified needs and to adequately monitor fundamental rights in the Union, contributing to countering discrimination and racism, defending fundamental rights, including at the Union’s external borders, and supporting justice and victims’ rights;

13. Stresses the importance of integrated border management to ensure the functioning and further integration of the Schengen area; highlights the impact of the Covid-19 outbreak in that field; highlights the role of the European Border and Coast Guard Agency (Frontex) in coordinating and developing integrated border management; notes that the proposed funding level of Frontex for 2021 stays below the financial statement of the Commission proposal for a regulation of the European Parliament and of the Council on the European Border and Coast Guard[18] thereby putting at risk the ability of Frontex to deliver a European standing corps of 10,000 border and coast guards by 2024; underlines that, while the budget of Frontex was already significantly increased during the last years, exceptional resources are still needed; calls for a budget increase for 2021 to EUR 804 268 491 in order to allow Frontex to build and train its standing corps as well as to purchase own equipment, thereby allowing a successful and timely deployment and operational support to the Member States at the external borders; stresses that this task requires compliance with fundamental rights and suggests that the additional resources should also be used to strengthen the Frontex fundamental rights monitors and to rescue lives at sea;

14. Welcomes the proposed increase of 16,5 % in the European Asylum Support Office’s (EASO) commitment and payment appropriationsbut regrets that the number of posts in its establishment plan have not been increased accordingly; requests therefore that EASO’s  establishment plan be reinforced by an additional 50 posts; stresses that additional staff will be needed if the new Regulation on the European Union Agency for Asylum is adopted; recalls that EASO’s operational activities have increased considerably in recent years to address migration pressure and to assist Member States in the reception of asylum seekers and the processing of asylum procedures, in particular in hotspots at the Union external borders; stresses that EASO has also been tasked with a number of new missions in the fields of relocation following disembarkation; highlights that the additional staff will reinforce field operations, development and delivery of trainings, information and analysis, practical tools, governance activities and administrative functions while national migration and asylum systems remain under pressure given the high number of asylum cases;

15. Takes note of the decrease  of 5 % in commitment appropriations and the increase  of 12 % in payment appropriations for the European Union Agency for the Operational Management of Large-Scale IT Systems in the Area of Freedom, Security and Justice (eu-LISA); highlights the important role of eu-LISA in setting up the EES, ETIAS, ECRIS-TCN and in managing and supervising Eurodac, VIS and SIS as well as in making the IT systems interoperable to ensure the faster provision of quality data to border management and law enforcement authorities; requests, in line with eu-LISA’s request, 14 additional staff to support the securing of information networks and databases, the extension of the operational sites of eu-LISA and the activities of the management board;

16. Recalls that independent and quality investigative journalism, by bringing quality fact-based information, combating disinformation, raising awareness to citizens and revealing wrongdoings or crimes, is an essential component of a well-functioning democracy; stresses that journalism across the Union faces strong challenges, in particular a lack of financial resources, thereby threatening its independence and survival; calls for a new Preparatory Action which builds on the successful 2018 IJ4EU Pilot Project and creates an emergency support fund to help protect journalists across the Union and to support the production of quality independent journalistic content in the public interest, thereby ensuring continued public trust in independent media;

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OPINION OF THE COMMITTEE ON CONSTITUTIONAL AFFAIRS (3.9.2020)

for the Committee on Budgets

on the general budget of the European Union for the financial year 2021 - all sections

(2020/1998(BUD))

Rapporteur for opinion: Antonio Tajani

SUGGESTIONS

The Committee on Constitutional Affairs calls on the Committee on Budgets, as the committee responsible, to incorporate the following suggestions into its motion for a resolution:

1. Regrets the fact that there is no specific mention of the Conference on the Future of Europe in the relevant communication budget lines of the Commission’s proposals; is of the opinion that there should be a dedicated budget for the Conference on the Future of Europe with adequate funding, that is in line with the objectives set out in the European Parliament’s positions on the Conference on the Future of Europe[19];

2. Insists on a significant increase in appropriations for the budget line ‘Promoting citizens engagement and participation in the democratic life of the Union’ in line with the Parliament’s amendments to the Commission proposal establishing the ‘Rights and Values programme’[20];

3. Welcomes the proposed 12 % increase in commitment appropriations and 5 % increase in payment appropriations as compared to the 2020 budget for the ‘Executive and corporate communication services’; proposes a further increase to enable active engagement by the Commission in its communication on the Future of Europe and to step up the fight against foreign interferences and disinformation;

4. Proposes an increase for the line ‘Commission Representations’ for the purpose of increasing public debate on EU matters, countering disinformation, proactively engaging with citizens and providing additional resources to finance activities in the framework of the Conference on the Future of Europe; considers that Parliament should also guarantee the appropriate resources for its Liaison Offices for this purpose;

5. Welcomes the proposed 35 %increase in commitment appropriations and 24 % increase in payment appropriations for ‘Communication services for citizens’; proposes a further increase in view of the scale of communication actions that will be needed in the framework of the Conference on the Future of Europe; invites the Commission to present the necessary proposals, in case further appropriations will be needed;

6. Urges that the above budget augmentations serve the purpose of delivering concrete results and quality communication to citizens; in order to ensure the delivery of these goals by the aforementioned budget lines, regular overviews of how the resources have been used and what impact they had should be made public.

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OPINION OF THE COMMITTEE ON WOMENS RIGHTS AND GENDER (24.9.2020)

for the Committee on Budgets

on the general budget of the European Union for the financial year 2021

(2020/1998(BUD))

Rapporteur for opinion: Robert Biedroń  

SUGGESTIONS

The Committee on Women's Rights and Gender Equality calls on the Committee on Budgets, as the committee responsible, to incorporate the following suggestions into its motion for a resolution:

A. whereas according to Article 8 of the Treaty on the Functioning of the European Union, in all its activities, the Union shall aim to eliminate inequalities, and to promote equality, between men and women, establishing the principle of gender mainstreaming; whereas the 2021 budgetary procedure, being the first of the 2021-2027 multiannual financial framework (MFF), represents an opportunity to better integrate gender mainstreaming throughout the budgetary procedure through gender budgeting; particularly in light of the multiple gendered impacts of the COVID-19 crisis on women’s rights such as increased gender based violence during the lockdown, a higher risk of drop-out from the labour market linked to a higher burden of care tasks, a higher share of women employed in sectors affected by the lockdown, including in the informal economy and in sectors with more precarious working conditions;

1. Stresses that the Citizens, Equality, Rights and Values Programme is the only Union programme with targeted measures on gender equality, including on preventing and combating gender-based violence; strongly reiterates its demand to increase, in particular, resources and for a dedicated budget line to combat gender-based violence, especially following the escalation of violence against women during the COVID-19 crisis, as well as its demand for increased funding for the gender equality and gender mainstreaming sub-goal and for the relevant organisations under the Daphne and Values strands of the Citizens, Equality, Rights and Values Programme; reiterates its call to include specific budget lines for all targeted measures on gender equality as a good practice on gender budgeting and with the aim of facilitating the tracking of the spending dedicated to gender equality;

2. Stresses the need to significantly increase resources in ESF+ to allow inclusion in the labour market and adapted training, as the COVID-19 crisis affected women’s employment disproportionally, in particular women working in the informal economy, many of whom may not be able to undertake formal employment as they are performing childcare duties, women in precarious working conditions, part-time contracts and in some heavily impacted and highly feminised sectors such as health, retail and care structures and services, childcare, elderly care as well as long term and social care to facilitate women’s participation in the labour market;

3. Stresses the need to consider a rise in resources aimed at enhancing women’s empowerment through entrepreneurship and to support SMEs run by womens ensuring them access to loans and finance through dedicated programmes;

4. Calls on the Commission and the Member States to address the underrepresentation of women in the digital economy, ICT and Science, Technology, Engineering and Mathematics (STEM) sectors in terms of education, training and employment, especially through dedicated actions aimed at informing and encouraging girls to explore STEM to motivate them in learning, studying and pursuing careers in the field and to dedicate targeted appropriations to close the digital gender gap by laying down proposals to enhance digital skills and digital literacy of women and boost their chances of achieving a level playing field, as well as helping women to adapt to new working conditions following the COVID crisis and promoting their increased participation in the economy;

5. Calls for an increase in appropriations in the Culture, Creativity and Inclusive Society Cluster to better integrate a gender perspective in each of the programmes, as well as to support and promote gender studies and research in the Union;

6. Stresses the need to reinforce budgetary allocations that support universal respect for and access to sexual and reproductive health and rights; calls on Member States to safeguard sexual and reproductive health and rights, in particular by ensuring that reproductive health programs and services exist, including essential voluntary family planning care and medicines and maternal and newborn health; calls on the Commission and the Member States to allocate additional resources to the EU4Health Programme in particular to ensure continued and timely provision of accessible and safe sexual and reproductive health and rights (SRHR) services as well as to support actions aimed at addressing health issues related to gender-based violence and supporting victims of gender-based violence; draws special attention to women living in rural, sparsely populated and least accessible areas, whose access to such services is often more limited;

7. Reiterates the need for the Union budget to play a more active role in pursuing the UN Sustainable Development Goals; calls, therefore, for it to support measures and projects aimed at eradicating female and child poverty, promoting greater and better integration into the labour market, eliminating labour and wage inequalities between men and women, improving access to and provision of health care and combating violence against women, children and young people;

8. Calls on the Commission and the Council to ensure that additional appropriations are allocated for women’s rights organisations, especially those working on promotion of SRHR and for LGBTI+ rights; reiterates its demand for a mechanism to protect the Union's budget in case of generalised deficiencies as regards the rule of law in the Member States; underlines that Parliament’s consent to the 2021-2027 MFF should be conditional on adherence to the values of the Union and stands ready not to give its consent for the MFF should there not be a political agreement on such a mechanism;

9. Reaffirms the important role of the European Institute for Gender Equality and the European Union Agency for Fundamental Rights and calls for an increase in their budgets to enhance their recruitment and research capabilities; recalls the important role played by the European Institute for Gender Equality in understanding the extent and causes of gender inequality in the Union; calls, therefore, for an increase in the budgetary allocation under the heading "Promoting non-discrimination and equality".

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JOINT STATEMENT ADOPTED AT THE BUDGETARY TRILOGUE OF 22 SEPTEMBER 2020

Indicative dates for the budgetary procedure and modalities for the
functioning of the Conciliation Committee in 2020

A. In accordance with Part A of the annex to the interinstitutional agreement between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, the European Parliament, the Council and the Commission agree on the following key dates for the 2021 budgetary procedure:

1. Given the exceptional circumstances due to the COVID-19 pandemic, the spring trilogue was not convened. Instead, a previous version of this statement was endorsed through an exchange of letters between the three institutions in accordance with their respective internal procedures. Due to the link to the 2021-27 MFF negotiations, the calendar of 2021 annual budget needs to be adjusted.

2. The Commission presented the Statement of Estimates 2021 on 24 June 2020.

3. There will be a trilogue and an interinstitutional meeting on payments on 22 September.

4. The Council will adopt its position and transmit it to the European Parliament on 1 October in line with the Treaty requirements.

5. The European Parliament's Committee on Budgets will vote on amendments to the Council's position by the end of week 42 (mid-October).

6. There will be a trilogue and an interinstitutional meeting on payments on 29 October.

7. The European Parliament's Plenary will vote on its reading in week 46.

8. The Conciliation period will start on 17 November. In agreement with the provisions of Article 314(4)(c) TFEU, the time available for conciliation will expire on 7 December 2020.

9. The Conciliation Committee will meet on 19 November, hosted by the European Parliament and on 3 December hosted by the Council and may resume as appropriate; the sessions of the Conciliation Committee will be prepared by trilogue(s). A trilogue is scheduled on 19 November. Additional trilogue(s) may be called during the 21-day conciliation period.

B. The modalities for the functioning of the Conciliation Committee are set out in Part E of the annex to the above-mentioned interinstitutional agreement.

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