Budget Agreement Details

After the International Energy Agency today praised Europe`s Covid-19 recovery plan, the EU Council agreed with the negotiators of the Bloc Parliament to move forward with the next seven-year budget. Earlier this week, as negotiations on the EU budget broke down, a spokesman tweeted a GIF from a Harry Potter film and begged for patience. WASHINGTON – A divided House of Representatives on Thursday passed a two-year budget deal that would increase spending by hundreds of billions of dollars over existing ceilings and allow the government to continue borrowing to cover its debt, as budget conservatives mutter about the measure`s impact on the budget deficit. On the other side of the debate, some MPs and national governments say they too can play the veto game. They say they will not sign elements of the fiscal and stimulus plan that will require their approval unless the legal mechanism is approved. Here are four important outliers of Tuesday`s agreement: months of wrangling ended in a 2021-2027 budget deal. It will open the door to green investments, but also to coronavirus funds. However, ratification by national parliaments is not yet complete. MEPs have been granted a `roadmap` for the introduction of new `own resources`. But nailing the details will probably lead to many discussions in the years to come. From a legal point of view, the introduction of new sources of revenue for the EU budget requires the approval of national parliaments – the green lights that no one in Brussels can guarantee. Congress is generally expected to adopt a temporary measure that primarily funds the government at its current level and leaves budget decisions for the period following election day.

The decline in ceilings will most likely inflate government spending. The Responsible Federal Budget Committee estimated Thursday that with Mr. Trump`s signing of the budget agreement, $4.1 trillion would have been added to the public debt during his term. This copy was amended on 11.12.20 to include the details of the European Commission regarding the budget agreement between the European Parliament and the Council of Ministers negotiators. This will increase EU budgetary spending on health, education and security by 16 billion euros, or 1.1 trillion euros, compared to the initial agreement reached in July between EU heads of state and government. “The budget, the clean-up fund, new revenue and the rule of law are a package for us,” said Siegfried Mursan, senior budget official. Ambassador #Clauß on the successful conclusion of the #EUBudget negotiations with @Europarl_EN: “Negotiations with the European Parliament have taken time, but we have finally reached them – we have reached a political agreement on the final details of the next long-term budget of the #EU.” 1/5 pic.twitter.com/rsTl4Uom3U Following the Commission`s development of budget plans, the Council of Ministers proposed in July an amount of EUR 1.07 trillion for 2021-27 and approved the Commission`s proposed 750 billion euro Covid rescue fund, called Next Generation EU. In addition, the EU agrees to link the rule of law to access to budget funds. The European Parliament as a whole has yet to approve the seven-year budget and the Council must sign the budget unanimously. The Council will also have to approve unanimously – and national parliaments must ratify the so-called own resources decision – a legal measure that is a precondition for the bloc to start borrowing money for the new collection fund.

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