CAP, Cohesion, Sherpas ... Guide not to get lost in the maze of European budgets

Friends of Cohesion . This has been called a group of countries with collusions to try to minimize cuts to European funds. They met in Portugal a few weeks ago and signed a joint statement. Cyprus, Czech Republic, Poland, Slovakia, Malta, Hungary, Spain, Bulgaria, Greece, Latvia, Estonia, Lithuania, Slovenia and Portugal were on the date. Croatia and Italy came, but chose not to ratify the document.

Compensatory checks. Known in community slang as 'rebates', they have their origin in the famous 'British check' that in 1984 Prime Minister Margaret Thatcher achieved in Fontainebleau. The United Kingdom, the Iron Lady argued, contributed too much to the European budget, especially since it barely benefited from Cohesion and the CAP, which accounted for more than two thirds of the expenditure. And since then he always received compensation of practically two thirds of the balance between his contributions and what he received directly. Austria, Sweden, Denmark, the Netherlands and Germany also receive partial checks (on their contributions or on VAT, for example), but only the United Kingdom was guaranteed it permanently and completely.

Rule of Law One of the friction points is the proposal to put conditionality on the reception of cohesion funds. That is, it is mandatory to respect the rule of law in order to receive aid. A clause that has Hungary and Poland on the radar. Until now, a qualified majority is required to impose sanctions. The formula that was wanted advocated a reverse majority, that is, to be able to prevent them, but it seems that the pressures of Warsaw and Budapest could prevent it.

Frugales : this is the way in which Sweden, Denmark, Austria and the Netherlands have defined themselves. They advocate a smaller budget, which is not more than 1% of the EU's GDP, more "modern" and that maintains compensatory checks (or rebates) from which some net taxpayers benefit. They are those who have a tougher and more media position, with a moralistic grounds. They consider that they pay too much and that they cannot and should not contribute more. They claim that although 1% of GDP is less than 1.16% of the 2014-2020 period, it is actually more. In absolute terms, because the community economy is much bigger now. But also, they say, in relative, since in particular, the economies of the four frugal is greater than that of the rest as well. In addition, the Netherlands, for example, has a coalition government that years ago already set its spending ceiling for the entire legislature, so Prime Minister Mark Rutte, with a parliamentary mandate, says he cannot raise taxes in any way. to its citizens or cut benefits nationwide. And they require cuts in the CAP and Cohesion Funds to devote to climate change, migration management or innovation.

Multiannual Financial Framework (MFP or MFF) is the EU Budget. Before 1980, the bulk of the resources of the European Communities came from customs duties and agricultural and sugar charges. At the beginning of that decade, VAT revenues were added. And in the end, direct contributions from countries according to their gross national income. For a time the Budget was made year by year, but with growth and accessions it became impossible, so it is now calculated in periods of seven years. The current one is 2014-2020, and the next one, which is being negotiated these days, is for 2021-2027. Agriculture and Cohesion Funds are the items that take away the overwhelming majority of the funds, but the new priorities are gradually eating the ground.

NegoBox, from Negotiating Box. In the European slang they call like this, or box, to the general proposal and broken down for the Community Budget. The Commission presented one in 2018, the Thai presidency, which led the EU last semester, another. And Charles Michel one more a week ago. After the first exchange with the leaders this Thursday, you will have to make a new one with changes

European Parliament : The European Chamber has a key role in the approval process of the Multiannual Financial Framework. Once leaders pacify the main lines, the proposal reaches the deputies, who must support it or not. In recent weeks, the institution's warnings have been very clear, stating that they cannot consent to such an ambitious budget. Parliament asked that it reach up to 1.3% of Community GDP, and the 1.074% that is now under discussion seems insulting. The institution threatens the veto, with the blockade, but not many countries take it seriously. "I do not see that if the leaders reach an agreement, Parliament knocks it down, with the consequence of not having a Budget on January 1, 2021," diplomats from the north explain. "This is not the same Parliament as in 2013," announced yesterday its President, David Sassoli, recalling that popular and socialists no longer have an absolute majority and that the groups can put strong pressure.

Own resources: in addition to the usual ones (customs, VAT or sugar tax) the proposal for the next financial framework includes new forms of income for the EU, such as a possible tax on plastics and another on carbon emissions

Sherpas: Negotiators are known that have the full confidence of the heads of State and Government and fight against each other before and during the summits. They are responsible, together with officials of the Commission or the Council, of drafting the documents of conclusions and, in this case, proposals for cuts or adjustments. After the departure of José Manuel Albares de Moncloa, the Spanish responsible for economic issues is Manuel de la Rocha, director of the Economic Office.

Roof . The way to negotiate budgets is very complicated. It all starts with a proposal from the European Commission, which does the technical part. To date, the MFP had always been increasing, but Brexit has disrupted the path. Without the United Kingdom, which was a net contributor, it has left a hole of between 70,000 and 80,000 million, so technicians in 2018 lowered the proposal. The Budget for the 2014-2020 period was 1.08 billion or 1.16 of the EU GDP (taking into account 27 countries). The European Commission proposed to leave it for 2021-2027 at 1.11 of the gross national income, a maximum ceiling. The European Parliament requires that it be 1.3%. The proposal of Charles Michel, president of the European Council, which is the last one and which has reached the superstar this week is a Financial Framework of 1,074% of the Community GDP (1,095 billion euros) until 2027.

According to the criteria of The Trust Project

• European Parliament
• United Kingdom
• Portugal
• Sweden
• Hungary
• Poland
• European Comission
• Austria
• Denmark
• Czech Republic
• Germany
• Bulgaria
• Cyprus
• Croatia
• Slovakia
• Slovenia
• Spain
• Estonia
• Greece
• Italy
• Latvia
• Lithuania

Macroeconomics Sanchez's express trip to Brussels to negotiate the European Budget

Key Summit Sanchez, without great allies, tries to minimize the cuts to the CAP and Cohesion from today

European Union The Southern and Eastern European countries refuse to reduce the community budget