MEPs slam EU recovery budget for watering down climate funding

MEPs have warned that the landmark €1.8tr EU recovery package and budget deal brokered by the European Council this week risks undermining the bloc's long-term priorities, including its Green Deal ambition to become the world's first net zero emissions continent by 2050.

In a resolution adopted by the European Parliament last night, MEP's hailed the "historic move" from EU leaders to back plans for a €750bn emergency funding to support Member States' recovery from the coronavirus crisis, backed by a €1.1tr long-term budget plan covering the 2021-27 period.

The EU Council had agreed to allocate 30 per cent of the €1.8tr recovery plan and budget to the bloc's climate agenda and net zero transition, and to come up with tougher emissions reduction targets for 2030 before the end of the year, following marathon talks which ended on Tuesday.

However, many other areas of initial proposals unveiled by the EU Commission were watered down by the Council in its agreement on Tuesday, and concerns have been raised by green groups over the lack of detail and oversight as to how the climate portion of the budget would be allocated and spent.

And last night, while noting that such a vast package of recovery funding marks an unprecedented move for the EU, MEPs slammed "massive cuts to the grant components" of the Council's deal, which saw budgets slashed for innovation programmes and the Just Transition fund.

The EU Parliament's resolution - backed by 465 MEPs to 150 votes against and 67 abstentions - warned such cuts would "undermine the foundations of a sustainable and resilient recovery" to the looming economic crisis, and would hamper flagship EU programmes for climate protection and the digital transition.

As such, MEPs said they were "prepared to withhold their consent" for the long-term EU budget until a satisfactory agreement is reached in the upcoming negotiations between Parliament and the Council, preferably by the end of October at the latest.

MEPs have no power of veto over the €750bn recovery package agreed by the EU Council this week, which includes €390bn in grants and €360bn in loans to aid the bloc's recovery over the next two years, which would be allocated by the Commission and funded via borrowing on the market.

However, the EU Parliament has demanded a role in overseeing the recovery package, and it also has a binding say over the EU's long-term budget, for which top priorities include furthering the Green Deal and net zero transition, as well as the bloc's digitisation ambitions.

Last night's MEP resolution therefore sets the scene for crunch negotiations between the Parliament and Council over the next two months, the outcome of which could have a significant bearing on the level of policy ambition and investment geared towards Europe's green economy over the next decade.

Nevertheless, given the looming economic crisis unfolding across Europe, there is significant pressure to quickly agree a deal on the recovery package - also known as Next Generation EU - and budget in order to rapidly unlock much-needed support for Member States' ailing economy.

European Commission President Ursula von der Leyen therefore last night urged MEPs to "swallow a bitter pill" and back the budget sought by the EU Council, according to the Financial Times. "We have a chance to do something historic for Europe," she said during last night's Parliamentary debate.

Meanwhile, trouble is also brewing over the proportion of the proposed EU budget and recovery package allocated to climate priorities and safeguards over how it is spent, with Europe's leading environmental groups urging EU leaders and MEPs to ensure no money is invested in fossil fuels.

In an open letter to the EU Parliament and Council yesterday, 10 organisations including Greenpeace, WWF, Climate Action Network Europe and Transport & Environment (T&E) called for 21 industrial sectors to be blacklisted from receiving EU recovery funding.

The letter warns the budget and recovery package includes insufficient safeguards to ensure cash does not support polluting industries, and that the 30 per cent climate spending target is inconsistent with the goals of the Paris Agreement and should therefore be increased.

"We cannot accept the paradox that something called 'Next Generation EU' invests 70 per cent of its funds in an older generation's economy while asking young Europeans to foot the bill," said T&E director William Todts. "Our fight must continue. Surely the European Parliament will amend this historic plan and make it fit for the future."

• Tweet  
• Facebook  
• LinkedIn  
• Send to  

• Topics
• Politics
• European Council
• European Parliament
• MEPs
• eu commission
• European Green Deal
• Green Deal
• Green recovery