Jan OLBRYCHT (EPP, PL) and Margarida MARQUES (S&D,PT) hold a press conference on the Commission's proposals for the MFF revision. Established for a period of at least five years, a MFF is there to ensure that the EU’s expenditure develops in an orderly manner and within the limits of its own resources. After its initial proposals of 2 May 2018 and in the wake of the COVID-19 outbreak, on 27 May 2020 the Commission proposed a recovery plan (NextGenerationEU) that included revised proposals for the MFF 2021-2027 and own resources, and the setting up of a recovery instrument worth EUR 750 billion. A review of the functioning of the MFF, and, as appropriate, proposals for a revision, are due by 1 January 2024, a date which Parliament has called to bring forward. The transcription is the result of an automatic process. Please, check against delivery.

Brussels

press conference

OLBRYCHT, Jan (EPP, PL)

Multiannual financial framework 2021-2027 (T)

MARQUES, Margarida (S&D, PT)

Press conference by Jan OLBRYCHT (EPP, PL) and Margarida MARQUES (S&D,PT), rapporteurs, on the Commission's proposals for the MFF revision

SOUNDBITE (English), Margarida MARQUES (S&amp;D, PT), Rapporteur, Thank you very much. Thank you to be here with us, after the Commission press conference, where, first of all, President von der Leyen and after Commissioner Johannes Hahn, had the opportunity to explain the proposal and to give more details on the proposal.

SOUNDBITE (English), Margarida MARQUES (S&D, PT), Rapporteur, So, we we can have now a first reaction from the European Parliament. But as I said, it's the first reaction because, as you know, we need to approve our report in the Parliament. But, why can we have this first reaction? It's because the Parliament adopted last December when the initiative report with the position of the Parliament.

SOUNDBITE (English), Margarida MARQUES (S&D, PT), Rapporteur, So, we start to this exercise to compare what we had demanded to the Commission and what the Commission is proposing now. And our our first reaction is that the Commission had listened to Parliament call and it is why we warmly welcomed the fact that the Commission has proposed change to MFF with more money in places where it is needed.

SOUNDBITE (English), Margarida MARQUES (S&D, PT), Rapporteur, And my first point, as we can see, it is why I need to have so much paper here with me. We can look to the title of the Commission proposal and the title is Mid-term Revision of the Multiannual Financial Framework 21-27. So, this is clear that it's not a review, it's a revision.

SOUNDBITE (English), Margarida MARQUES (S&D, PT), Rapporteur, It means what the European Parliament was asking for, and it was clear that the review was not enough. And you know also that the European Council, when the debate on the MFF 21-27 took place in the conclusion it's written that no MFF revision and now we must revise MFF and we wish that the next European Council will conclude that we need to revise MFF and to start these negotiations with the Parliament.

SOUNDBITE (English), Margarida MARQUES (S&D, PT), Rapporteur, My second point is that we call for additional financing. Our point is always new priorities, means new money, means fresh money and it's the case. So it means we call for additional financing for new political priorities and initiatives since MFF was adopted. And to make up to significant underfinancing and greater flexibility and crisis response capacity, so that the budget can finance the response people expect it from EU.

SOUNDBITE (English), Margarida MARQUES (S&D, PT), Rapporteur, The Commission proposal ads around 100 billion to the current MFF, including the extra EURI costs. It means the compromises with the next generation EU. This put MFF above what the Commission proposed in 2018 and much closer to what Parliament demanded. We will begin our work as soon as possible.

SOUNDBITE (English), Margarida MARQUES (S&D, PT), Rapporteur, It means when the Parliament adopt its proposal and we want this proposal adopted quickly because the changing being proposed are needed now. But we also need to make sure it covers all the needs and we expect the Council to begin work immediately and we can read to sit down with them in a constructive point.

SOUNDBITE (English), Margarida MARQUES (S&D, PT), Rapporteur, I need to say that we trust this Commission proposal because this Commission, as we know and as Johannes Hahn repeated during his press conference, this proposal was prepared after Johannes Hahn made it to the capital. So the Commission is convinced, it's room of manoeuvre to put this proposal on the table. And we felt that this is a realistic proposal.

SOUNDBITE (English), Margarida MARQUES (S&D, PT), Rapporteur, I would like also to underline two or three points more. The first one is on cohesion. Hopefully, it's not written in the proposal, but we can't follow or we can't support the expression used the by President von der Layen during the press conference in a way that we can mobilise the cohesion money because the Cohesion Fund has not projects.

SOUNDBITE (English), Margarida MARQUES (S&D, PT), Rapporteur, It is not the case. We know very well that cohesion has projects and cohesion is a key political dimension of the European Treaties and the European Union. So, of course, we support it very much the fact that the Commission decided to increase to put the extra money needed for to support the compromise is on Next Generation EU to do it over and above the ceilings.

SOUNDBITE (English), Margarida MARQUES (S&D, PT), Rapporteur, So, it means that the Commission maintain the depth line in the budget, in adding to, but the Parliament demand to put the costs of the debt over and above the ceilings because we were confronted with the risk that cohesion policy could be cut in the future. And it's not the case because the extra money needed for the costs, the depth costs will be over and above the ceilings.

SOUNDBITE (English), Margarida MARQUES (S&D, PT), Rapporteur, So, and the key demand that the Parliament meet concerning Ukraine, concerning the sovereignty found concerning migration. So, the key points we have now proposals made by the Commission and we can start to negotiate these proposals. Thank you.

SOUNDBITE (English), Jan OLBRYCHT (EPP, PL), Rapporteur, I would just to add to what you and Marques have said, that, first of all, let me remind you the procedure. It means that any change in the evidence requires, from the point of view of the Council, unanimous decision, and next, if Council would send us to the decision that we really have the possibility to see us . No. So because this is the constant procedure.

SOUNDBITE (English), Jan OLBRYCHT (EPP, PL), Rapporteur, So, our reaction now is showing that our behaviour will be like it was before without EU affairs. It means that we will not be silent to the moment of the decision. Because we now have the proposal of the Commission. This proposal is going to the Council, but of course that now we will try to make the negotiation with the Council showing that which the proposal was support and very, very clearly we what we expects to have the decision whether we can agree or not.

SOUNDBITE (English), Jan OLBRYCHT (EPP, PL), Rapporteur, It means that we will not wait till the moment of decision of the Council who will try to to react before the decision of the Council. This is first element. So, that's why we understand the proposal of the Commission is quite open and and quite brave compared to other elements. The way the market said said about the 1 billion and Ursula von der Layen said 66, this is the difference concerning the loans for Ukraine. So, this is the this is a difference.

SOUNDBITE (English), Jan OLBRYCHT (EPP, PL), Rapporteur, But in in general concerning the possibility of the budget will be 100 billion as it was set. It's the very clear support from Ukraine what has been said and for the imigration that goes for the border control of the immigration system of EU. But also the question of the competitiveness, the so-called step into, and of course which would consist of different different funds in different programmes, but with the also with the new fresh money.

SOUNDBITE (English), Jan OLBRYCHT (EPP, PL), Rapporteur, What is important for us, that we will have some kind of reserve, which is the flexibility instrument, what we were asking for. That we need the reserve, this kind of instrument which is not systematic, which is open, it means that is possible to use it for different new challenges.

SOUNDBITE (English), Jan OLBRYCHT (EPP, PL), Rapporteur, What is the proposal of the Commission in the technical adjustment. This is the flexibility instrument. But also, what has been explained by Margarida MARQUES is the the question of what to do with the costs of the debt. Then we will have the the key, the the main element in the budget.

SOUNDBITE (English), Jan OLBRYCHT (EPP, PL), Rapporteur, But everything which depends on the changes of the costs of the creditors will be as a new special instrument over the sitting. So I think this is important because we will have several new special instruments which can be mobilised in a situation of absolute need. We will also have the proposal of the article seven, which is about the cost of administration.

SOUNDBITE (English), Jan OLBRYCHT (EPP, PL), Rapporteur, We didn't ask for it as Parliament, but we understand that this is absolutely necessary because of inflation and that's why we will support the approach of the of the European Commission. So just, to summarise, we understand that this proposal is going along our expectations because this is first revision. Next it's about the fresh money and of course we are now interest in what will be the reaction of the Council.

SOUNDBITE (English), Jan OLBRYCHT (EPP, PL), Rapporteur, One thing more what is mentioned also by the Commissioner Hahn. The question is about the the timetable because we as Parliament as co-legislator, we have to work closely with the Council to prepare the budget 24. This Budget 24 should include the changes in the MFF, to make it more realistic.

SOUNDBITE (English), Jan OLBRYCHT (EPP, PL), Rapporteur, So what makes that the decision of the Council should be absolutely as soon as possible to have the decision of the Council, next the agreement of the Parliament, and to be ready before the 13 of November. So this will allow us to prepare the Budget 24 with the elements of the revised MFF.

SOUNDBITE (English), Jan OLBRYCHT (EPP, PL), Rapporteur, If this is not the case, probably it will require the different kind of procedure which is possible but much more difficult. So the situation is absolutely urgent and we are waiting for the decision of the Council as soon as possible, but before they will get our position. Thank you.

Q&A, Question regarding the interest payments and if they are going to be part of the current headings.

Q&A, on First question on the Legislative Procedure and the position of the Council. Second question how satisfied the rapporteurs are about the priorities of the Commission.