The Billion-Euro Negotiations on the EU’s Multiannual Financial Framework

By Lea Schiller

959.51 billion in commitments and 908.4 billion in payments – this is how much money the last Multiannual Financial Framework of the European Union (EU) decided on. The Multiannual Financial Framework (MFF) – is the EU’s long-term budget. Covering a period of at least five but usually seven years, its purpose is to help the adaption of the annual budget and set ceilings for the EU’s payments and commitments (meaning, the amount of legal obligations the EU can enter). Subsequently, the MFF also has a big influence on the contributions of member states to the EU, which can make these negotiations a crucial affair especially for the net contributors to the union, which is why the budget is decided on in the European Council by unanimity. 

This month, the EU debated the budget of 2021-2027. After meeting with all leaders of the member states, president of the European Council Charles Michel called for a special summit on the 20th of February. But what he had planned to finish in one summit would go on to be what Polish prime minister Mateusz Morawiecki described as the “most difficult negotiations in history” on the EU budget. 

After Brexit, the EU is left with an up to 75 billion Euro big hole in its contributions, and member states are in disagreement on how to make up for it. Proposed solutions include bigger payments of the net contributors, and less concessions to the net beneficiaries, but not all members are prepared to agree to this. In what has been labeled as the “frugal four”, Austria, Denmark, the Netherlands and Sweden have joined to advocate for a cap on the EU budget at 1 percent of the gross national income. Describing their demands, Austrian chancellor Kurz stated: “We insist on permanent net corrections to prevent excessive budgetary imbalances and achieve a fair, sustainable outcome.”

When the summit closed after two days of negotiations, the member states had failed to agree on a new budget deal. The proposal that stood at the end of the summit was rejected by the majority of member states. And while Dutch Prime Minister Mark Rutte stated the document was “moving in the right direction,” though still insufficient, Portuguese Prime Minister António Costa claimed it to be “bad” and further claimed it would only make things more complicated. With the summit ending without a budget deal and no date yet set for further negotiations, it is difficult to say when the EU will reach a decision. Croatian Prime Minister Andrej Plenković even questioned whether this will happen during his country’s presidency of the Council, which is running out at the end of June.

Photo by Maryna Yazbeck on Unsplash

References

EU budget summit: As it happened (2020, February 22). Politico. Retrieved from: https://www.politico.eu/article/eu-european-union-budget-summit-live-blog-european-council-charles-michel-multiannual-financial-framework/#1279650

Khan, M., Fleming, S. & Brunsden, J. (2020, February 21). EU leaders propose budget compromise at fraught summit. The Financial Times. Retrieved from: https://www.ft.com/content/c3e2ef6e-53ed-11ea-8841-482eed0038b1

Kurz, S., Rutte, M., Frederiksen, M. & Lofven, S. (2020, February 16). The ‘frugal four’ advocate a responsible EU budget. The Financial Times. Retrieved from: https://www.ft.com/content/7faae690-4e65-11ea-95a0-43d18ec715f5

The European Council (2020, February 11). Multiannual financial framework: shaping EU expenditure. Retrieved from: https://www.consilium.europa.eu/en/policies/eu-budgetary-system/multiannual-financial-framework/

The European Council (2019, February 25). Multiannual financial framework for 2014-2020. Retrieved from: https://www.consilium.europa.eu/en/policies/eu-budgetary-system/multiannual-financial-framework/mff-2014-2020/
The European Council (2020, February). Multiannual financial framework for 2021-2027: negotiations. Retrieved from: https://www.consilium.europa.eu/en/policies/eu-budgetary-system/multiannual-financial-framework/mff-negotiations/

Apulia: The Strategy Behind Tourism

By André Francischetti Moreno

An 800 kilometers coastline, olive groves leading to timeless cities of unscalable heritage value, mountains, cliffs, sanctuaries, home of Virgil, shelter of three UNESCO world heritage sites and an inspiration for one of the most representative Italian songs Nel blu dipinto di blu. Apulia is the most dynamic region in Southern Italy and is precisely located in the “heel” of the Italian “boot”. In recent years, it has become a trendy destination for tourists interested in exploring more in depth a country that keeps enchanting the world with its culture, nature and history. Emphatically, both culture and tourism have been an essential and interlinked part of the shift away from a primary-based economy, representing a big asset for regional economic growth. Rather than a natural coincidence for a gifted region, however, increased tourism has been the result of several projects sponsored by the European Union and the Italian government aimed to deal with important local challenges for international markets.

The first challenge for a further tourist development was the relative remoteness of Apulia regarding the main Italian destinations’ circuits, such as Venice, Florence and Rome. The second was the presence of small and medium sized tourism enterprises with difficult representation in the global market due to a lack of resources or willingness, thus problematizing the matching between single suppliers (e.g. hotels) and smaller suppliers (e.g. Bed and Breakfasts) with international tour operators involved in the organization of travel for foreign tourists. Additionally, a lack of highlight to the treasures of the region, seasonality, lack of private investment and infrastructure problems were also key issues to solve. A myriad of important projects was designed to address these matters, nevertheless in this text we are going to focus on two of them: “Buy Puglia” and the “PiiiL Culture” plan.

Buy Puglia was a Cohesion Policy program largely funded by the European Regional Development Fund (ERDF), lasting from 2007 to 2013. Its main goal was to give visibility to local sellers in national and international markets to attract foreign buyers. Pugliapromozione, the agency responsible for implementing the project, promoted exhibitions, trade sector initiatives to expose regional products, and provided educational tours, familiarizing tour operators with tourist attractions. The heart of Apulia´s strategy focused on two pillars, these being culture and tourism. Firstly, the action was based upon promoting culture as a place-branding and tourism attractor, strengthening the idea of culture as an employment generator tool and building competitive advantage. For tourism, the rationale was based upon reducing seasonality and attracting foreign investment via tourism promotion, diversification of the offering (from romantic routes to a sports destination), restoration of key monuments, fostering and supporting employment, and stimulating a more widespread growth of tourism including in less popular areas. Additionally, the ERDF invested heavily in ports, airports and in the restructuration and linkage of cultural and environmental heritage, becoming an important regional driver of economic activity for both employment and the overall economic development of the region.

Besides, in coherence with the EU strategy “Europe 2020”, which emphasizes a European agenda for growth and jobs in the coming decade, Apulia became a model of cultural planning by implementing the “PiiiL Culture” plan. As the name suggests, it is an economic development policy based on culture which aims on achieving smart, sustainable and inclusive growth. With an investment of 400 million euros for ten years, beginning in 2017, the region government decided to focus on the “PiiiL” acronym: Product (building a cultural product of quality), Identity ( defining identity as rooted, authentic, half-caste, open and plural), Innovation (regarding both product and its shaping), Enterprise (from volunteering to a new business culture) and Work (without good employment there is no economy of culture). Also, in partnership with the Apulian Film Commission Foundation, the Regional Ministry for Tourism changed the traditional approach on the promotion of specific areas (i.e. Salento and Vale d´Itria) towards the promotion of the brand “Apulia” and “Apulia and cinema” in Italy and abroad. The “PiiiL Culture” is planned triennially and favors public-private partnerships, innovation, internationalization, valorization of urban and suburban areas, use of underused spaces and the growth/formation of the public through cultural activities.

Today, international flights land in the main airports of Puglia in Brindisi and Bari, and the official tourism website of the region offers ready-to-take itineraries and tips on things to do, where to go and events to attend. If you have any social media, you may also use the hashtag #WeAreInPuglia to discover new places and find more about the experience of other people who visited those. Abraham Lincoln once said that the best way to predict the future was to create it, and Apulia, supported by the European Union and the Italian government, is building it in a sustainable, inclusive and attractive way.

Photo by Claudia Lorusso on Unsplash

References

https://ec.europa.eu/regional_policy/sources/docgener/evaluation/pdf/expost2013/wp9_mini_case_buy_puglia_en.pdf
https://ec.europa.eu/regional_policy/sources/docgener/evaluation/pdf/expost2013/wp9_case_study_puglia_en.pdf
https://www.viaggiareinpuglia.it/allegati/Eventi/100423_apulia__synthesis_oecd_draft_report_1275388292363.pdf
https://www.agenziapugliapromozione.it/portal/documents/10180/4141542/Communication%20plan%20Puglia%20destination%202019
PiiiL CULTURA IN PUGLIA. (n.d.). Retrieved from https://www.piiilculturapuglia.it/.
Your key to European statistics. (n.d.). Retrieved from https://ec.europa.eu/eurostat/web/europe-2020-indicators.