AKEL on European Council Agreement on the Multiannual Financial Framework and EU Next Generation Fund
AKEL C.C. Press Office, 21st July 2020, Nicosia
After many days of negotiations, the European Council reached an agreement on the Multiannual Financial Framework (MFF) 2021-2027 and the EU Next Generation Fund for a recovery from the crisis that was caused by the pandemic and its consequences. The duration and intensity of the negotiations demonstrate the competition and conflict of interests and approaches between the powerful member states and groups of EU member states.
Under the pressure of the pandemic’s socio-economic consequences, the 27 leaders reached a compromise that will form the EU budget until 2027. The confusion and absence of coordination during the pandemic’s initial stages, how unprepared the EU as a whole was to confront the crisis, but also the lack of solidarity with the countries most affected, demanded decisions that would have improved the EU’s standing.
From a first reading of the Recovery Fund agreement, it is clear that it falls very far behind the original proposal, which had grants as its main instrument, given that the compromise between the states provides for the allocation of € 360 billion in loans and € 390 billion in grants. The terms and preconditions that accompany both the allocation of grants and lending are of critical importance
We also note that despite the aspirations that had been created for the provision of direct support towards member states, the amounts will not be available in 2020.
At the same time, the MMF’s 1.074 billion Euros for the next seven years do not deviate from the philosophy and orientation of neoliberalism, a fact that does not permit any rupture with the policy that has brought the well-known misery workers and the peoples are suffering. We are particularly concerned about the continuation and increase in the funding for the defence industry and military expenditure.
As far as Cyprus is concerned, the agreement must be studied seriously by the government so that our country can absorb the maximum amount available in substantial development and the real economy to the benefit of all those who have really been affected by the crisis caused by the pandemic.
