Recovery and EU budget, Gentiloni announces: "White smoke"

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November 10, 2020 "White smoke for Recovery and Budget".

The Commissioner for Economic Affairs of the European Union, Paolo Gentiloni, writes on Twitter, commenting, in turn, on the post by Sebastian Fischer, spokesman for the German presidency of the Council of the European Union, announcing: "An agreement for Europe : the negotiators of the Council and the European Parliament reach a political agreement on the European budget and the Recovery package. Now it is necessary to give the final approval by the Parliament and the European Council ".

White smoke for Recovery and Budget #NextGenerationEU https://t.co/HFyNvpgxqG

- Paolo Gentiloni (@PaoloGentiloni) November 10, 2020

The German presidency of the European Council has announced that it has a political agreement with the negotiators of the European Parliament, in talks to ensure Parliament's approval for the next multiannual financial framework , the EU's long-term budget.

This is what Brussels says in a note, explaining that "the agreement was reached following intense consultations with the Parliament and the Commission that have been underway since the end of August. The negotiated global financial package of 1,824.3 billion euros has been completed. by EU leaders in July, which combines the next multiannual financial framework - € 1,074.3 billion - and a € 750 billion interim recovery instrument, Next Generation Eu ".

The negotiation game that includes the Recovery Fund opened between the two institutions after the July summit and has been prolonged due to the great distances on the cuts to EU 'flag' programs - such as Erasmus, Horizon and the Defense Fund - decided by leader in the long summer meeting. 

MEPs and the German presidency of the EU Council have agreed on a € 15 billion targeted strengthening of EU 'flag' programs, including Horizon Europe, EU4Health and Erasmus.

The resources come from additional financing for 12.5 billion euros and reallocations for 2.5 billion euros.

The two institutions have also agreed on greater budgetary flexibility to allow the EU to respond to unforeseen needs.

The agreement will now be submitted to member states for approval together with the other elements of the next multiannual financial framework and the Recovery Fund. 

If the final approval process of the Recovery fund ends on time within the year, "in the late spring of next year there will be the first disbursement" of the funds and "for countries such as Italy these are important figures , that is 10% of a volume approaching 200 billion ", said the commissioner for the economy Paolo Gentiloni speaking to the Foreign Affairs Committee of the Chamber.

Gentiloni also explained that the European Parliament made another proposal on the advance of funds, increasing it to 20%, so the final figure is yet to be defined.