EU recovery fund struggles to find its true nature

In June 2018, the European Commission presented a legislative proposal on a European Defence Fund, including a budget allocation of €11.5 billion in constant 2018 prices for the 2021-2027 period. The proposal aimed to streamline and simplify the set-up in place at the time by integrating the Preparatory Action on Defence Research (research window) and the European Defence Industrial Development Programme (as one part of the capability window) into a single Fund. The main aims of the Fund would be to foster the competitiveness and innovativeness of European defence and to contribute to the EU’s strategic autonomy. In this regard, the Fund would inter alia support collaborative industrial projects; co finance the costs of prototype development; encourage the participation of small and medium-sized enterprises; and promote projects in the framework of permanent structured cooperation. Synergies were expected with other EU initiatives in the field of cybersecurity, maritime transport, border management, Horizon Europe, the space programme and the European Peace Facility. In April 2019, after several trilogue meetings, Parliament and Council reached a partial agreement on the Fund, covering the content, but not, among other things, budgetary issues. Parliament adopted its position at first reading in April 2019. A provisional political agreement on the outstanding issues was reached in December 2020. The Council adopted its first-reading position in March 2021 and the Parliament adopted the text at second reading on 29 April. The final act was published in the Official Journal on 12 May.

Source : © European Union, 2021 – EP

The EU supports the development of high-performing, sustainable and interconnected trans-European networks in the areas of transport, energy and digital infrastructure. It set up the Connecting Europe Facility (CEF) as a dedicated financing instrument for the 2014-2020 period, to channel EU funding into the development of infrastructure networks, help eliminate market failures and attract further investment from the public and private sectors. Following a mid-term evaluation, the European Commission proposed to renew the programme under the long term EU budget for the 2021-2027 period. In the 2014-2019 term, the Council and the European Parliament provisionally agreed on the content, leaving aside the budget and the questions relating to third countries. Negotiations resumed in the present term, reflecting the Commission’s revised MFF proposal of May 2020 and the European Council conclusions of July 2020. Final details were agreed on 11 March 2021. The agreement has already been confirmed by the responsible parliamentary committees TRAN and ITRE, and the Council subsequently adopted its first-reading position on 14 June 2021. The Parliament is expected to vote at second reading during the July plenary session. Once adopted, the new CEF regulation will apply retroactively from 1 January 2021. Fifth edition. The ‘EU Legislation in Progress’ briefings are updated at key stages throughout the legislative procedure.

Source : © European Union, 2021 – EP

Law-making by the executive is a phenomenon that exists not only in the European Union (EU) but also in its Member States, as well as in other Western liberal democracies. Many national legal systems differentiate between delegated legislation − adopted by the executive and having the same legal force as parliamentary legislation − and purely executive acts −aimed at implementing parliamentary legislation, but that may neither supplement nor modify it. In the EU, the distinction between delegated acts and implementing acts was introduced by the Treaty of Lisbon. The distinction, laid down in Articles 290 and 291 of the Treaty on the Functioning of the European Union (TFEU), seems clear only at first sight. Delegated acts are defined as non-legislative acts of general application, adopted by the European Commission on the basis of a delegation contained in a legislative act. They may supplement or amend the basic act, but only as to non-essential aspects of the policy area. In contrast, implementing acts are not defined as to their legal nature, but to their purpose − where uniform conditions for implementing legally binding Union acts are needed. Under no circumstances may an implementing act modify anything in the basic act. Delegated acts differ from implementing acts in particular with regard to the procedural aspects of their adoption − the former after consulting Member States’ experts, but their view is not binding; the latter in the comitology procedure, where experts designated by the Member States, sitting on specialised committees, can object to a draft implementing act. In the case of delegated acts, however, the Parliament and Council can introduce, in the delegation itself, a right to object to a draft act or even to revoke the delegation altogether. Both delegated and implementing acts are subject to judicial review by the Court of Justice of the EU which controls their conformity with the basic act.

Source : © European Union, 2021 – EP

Draft Amending Budget No 3/2021 (DAB 3/2021) to the European Union’s 2021 general budget aims to enter as revenue in the 2021 budget the surplus resulting from the implementation of the 2020 budget. The 2020 surplus totals almost €1.77 billion (as compared to €3.2 billion in 2019, €1.8 billion in 2018 and €0.56 billion in 2017). It consists mostly of higher than expected revenues, plus under-spending on the expenditure side. Inclusion of the surplus will reduce the gross national income (GNI) contributions of the EU Member States to the 2021 budget accordingly. The European Parliament is expected to vote on the Council position on DAB 3/2021 during its July plenary session.

Source : © European Union, 2021 – EP

In the context of the multiannual financial framework (MFF) for the 2021-2027 period, the Council has adopted Council Regulation (Euratom) 2021/948 of 27 May 2021 establishing a European instrument for international nuclear safety cooperation complementing the Neighbourhood, Development and International Cooperation Instrument – Global Europe on the basis of the Treaty establishing the European Atomic Energy Community. Regulation 2021/948 complements, but is separate from, the new Global Europe Instrument. Regulation 2021/948 replaces Council Regulation (Euratom) No 237/2014 of 13 December 2013 establishing an instrument for nuclear safety cooperation (INSC). It continues to fund the important activities carried out under the previous regulation, namely to support the promotion of a high level of nuclear safety and radiation protection and the application of effective and efficient safeguards of nuclear materials in third countries, building on the activities under the Euratom Treaty. Second edition. The ‘EU Legislation in Progress’ briefings are updated at key stages throughout the legislative procedure.

Source : © European Union, 2021 – EP