Negotiations for the EU budget: a CAP decline of 10,2%
The month of July was marked by the agreement reached between the Heads of State and Government on the EU’s Multiannual Financial Framework. For the CAP, the agreement was reached on the basis of a proposal by the President of the Council with some minor adjustments to the February 2020 text, including €1.45 million of additional funds for market-related payments and direct aids, as well as revised co-financing rates for rural development support. Expressed in constant 2018 euros, the CAP budget is €39 billion lower (-10.2%). In current euros, it remains stable.
In the wake of the agreement, MEPs voted a resolution opposing the MFF as it stands, calling the cuts to several flagship programmes “unacceptable” and rejecting the continuation of rebate schemes. This resolution in no way means a rejection of the MFF, but a European Parliament that wants to enter into negotiations with the Council. It has little room for manoeuvre, given the debates between countries and the fact that the EP can ultimately only accept or reject the Council’s budgetary decisions en bloc.
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