EP negotiators warn new EU budget inadequate in long-term

BRUSSELS - The European Parliament's (EP) negotiating team on Tuesday welcomed the deal on a massive recovery package reached by the European Union (EU) summit earlier in the day, but warned that the agreement to the long-term EU budget cannot be taken for granted.

EP's negotiating team in a press release hailed the agreement on the recovery instrument, named Next Generation EU (NGEU), financed with a borrowing of 750 billion euros, following intense marathon negotiations.

"This massive borrowing is a historical moment for the European Union, and we should not disregard what just happened," said the EP's negotiators in the press release.

The European Parliament remains critical on some essential aspects of the compromise, particularly on the long-term perspective.

"The picture is much more negative when it comes to the EU long-term budget. Parliament cannot accept the proposed record low ceilings as they mean renouncing to the EU's long-term objectives and strategic autonomy, while citizens ask for more," warned the negotiating team.

EU leaders agreed upon a comprehensive package totaling over 1.8 trillion euros which combines the long-term EU budget for 2021-2027, or the so-called Multiannual Financial Framework (MMF) worth of nearly 1.1 trillion euros, and the NGEU recovery fund.

The MFF, reinforced by NGEU, will be the main instrument for implementing the recovery package to tackle the socio-economic consequences of the COVID-19 pandemic, according to the European Council.

However, the EP has noted that "the recovery should not reduce investment capacities nor harm the national taxpayer".

The Parliament has also made it clear that it remains ready to immediately enter negotiations in order to achieve a better agreement for Europe.