9803/17

COM(2017) 290

Communication from the Commission to the European Parliament and the Council: Consequences for the European Union's Budget 2018 and beyond in case the Mid-Term Revision of the Multiannual Financial Framework 2014-20 is not adopted

Submitted by HM Treasuryon / 9 October 2018

SUBJECT MATTER

1.This note explains how the Commission’s proposal for the 2018 EU Budget would be changed if the Mid-Term Review (MTR) of the Multiannual Financial Framework (MFF) does not pass. The Commission proposal has been written as though the MTR has passed.

2.The Commission explains that broad political agreement on the MTR proposal had been reached and this measure was due to be voted on at the General Affairs Council of 25 April but that this vote was delayed at the UK’s request. The UK could not vote on this file at the time due to pre-election (‘purdah’) restrictions.

3.The MTR preserves the overall ceilings set out in the MFF but allows greater flexibility for financing new emergencies and allocates more funds to areas such as youth unemployment, security, migration and growth.

4.In this communication, the Commission states that if the MTR is not approved then funding additional expenditure for migration, security or the prolongation of the Facility for Refugees in Turkey will require reducing the margins available for other policy areas. The EU would also have limited means to act in response to major natural disasters, international crises or other unforeseen events.

SCRUTINY HISTORY

5.An EM on document 12183/16 onthe Mid-term review was submittedon 17 October 2016. It was cleared by the House of Lords EU Committee on 1 December 2016 and by the Commons European Scrutiny Committee through debate on 7 December 2016.

MINISTERIAL RESPONSIBILITY

6.The Chancellor of the Exchequer has responsibility for United Kingdom policy on European Union monetary and economic issues. The Foreign and Commonwealth Secretary and the Secretaryof State for Exiting the EUare responsible for overall United Kingdom policy towards the European Union.

INTEREST OF DEVOLVED ADMINISTRATIONS

7.EU financing is a reserved matter under the UK's devolution settlements and no devolved administration interests arise. The devolved administrations have therefore not been consulted in the preparation of this EM.

LEGAL AND PROCEDURAL ISSUES

8.There are no legal or procedural issues related to this document.

APPLICATION TO THE EUROPEAN ECONOMIC AREA

9.No issues arise

SUBSIDIARITY

10.The EU budget is a matter of exclusive Community competence. This communication explains the Commission’s view of the consequences of the MTR not passing.

CONSULTATION

11. No consultation

IMPACT ASSESSMENT

12.No impact assessment.

FINANCIAL IMPLICATIONS

13.No financial implications.

TIMETABLE

14.This is not a legislative proposal. We anticipate that the MTR vote will take place by the end of June.