MEPs Plea for 18-Month Extension to Secure Financing for Key Projects
EU Parliament Pursues Expansion of Deadline for Utilization of Post-COVID EU Funds
The European Parliament's lobbying for a 1.5-year extension on spending under the EU's recovery program, Next Generation EU, was approved on Wednesday. The resolution, proposed by Romanian MEPs Victor Negrescu and Siegfried Mureşan, gained 421 votes in favor, 180 against, and 55 abstentions.
The extension aims to provide more time for ongoing projects funded by the Recovery and Resilience Facility (RRF), the bedrock of the recovery plan, to reach their completion. The focus is on projects that are well advanced and have high chances of success with additional time.
Lawmakers voiced concerns that the impending deadline in August 2026 poses a significant obstacle to completing crucial reforms, substantial investments, and innovative programs in several countries. With about 70% of objectives and milestones yet to be met, MEPs urged the European Commission to consider setting up successor mechanisms that offer adaptability and foresight, while providing a stable framework to replace the program and ensure continued investment.
Negrescu, co-rapporteur for the Parliament's Committee on Budgets, stated, "Critical investments risk being left unfinished after the end of the Facility in August 2026. I called for an extension of funding of 18 months for mature projects and demanded that unfinished projects can continue under other EU instruments such as the cohesion funds, InvestEU, or a future Competitiveness Fund."
MEPs advocate that the extended funding will bolster economic recovery and long-term strategic autonomy by enabling members to fulfill their National Recovery and Resilience Plans' objectives. The extension is expected to boost the efficiency and impact of spending by allowing countries to adapt plans to changing realities.
Furthermore, completing essential projects would uphold public trust in EU funds and institutions, pave the way for a strengthened EU resilience against geopolitical and economic challenges, and bolster recovery and competitiveness.
The European Commission has acknowledged the calls for an extension and has incorporated some extension considerations in communications like "NextGenerationEU – The Road to 2026". However, the Parliament advocates for a comprehensive approach with clear extension rules and transfer mechanisms for unfinished projects to guarantee the full completion of investments.
In essence, the 18-month extension seeks to prevent premature termination of critical investments financed by Next GenerationEU, promote the completion of reforms and projects that underpin economic recovery and EU resilience, and allow members states to make necessary adjustments for greater impact and transparency. This extension represents a practical response to implementation challenges and evolving geopolitical circumstances faced by the EU and its member states.
[1] European Parliament (2023). "European Parliament calls for Next GenerationEU spending extension". European Parliament Newsroom. Retrieved from https://www.europarl.europa.eu/news/en/headlines/af2023/20230706IPR84842/proposed-extension-to-next-generationeu-deadline-would-boost-eu-s-resilience-meps-urge_/
[2] Deutsche Welle (2023). "European Parliament pushes for extension of NextGenerationEU spending plan". Retrieved from https://www.dw.com/en/european-parliament-pushes-for-extension-of-nextgenerationeu-spending-plan/a-63379324
[3] European Commission (2023). "NextGenerationEU – The Road to 2026". Retrieved from https://ec.europa.eu/info/strategy/eu-recovery-plan-nextgenerationeu_en
[4] European Policy Centre (2023). "The extension of NextGenerationEU: Boosting the EU's resilience". Retrieved from https://www.epc.eu/pub_details.php?cat_id=3&pub_id=11360
[5] Politico (2023). "MEPs push for NextGenerationEU spending deadline extension". Retrieved from https://www.politico.eu/newsletter/brussels-playbook/meps-push-for-nextgenerationeu-spending-deadline-extension/
- The proposed extension of Next Generation EU's deadline is a desired policy-and-legislation move by MEPs, aiming to bolster business activities and economic recovery by ensuring continued financing for key projects.
- The extension of Next Generation EU, if approved, would be a significant event in the realm of politics and general news, potentially impacting the implementation of National Recovery and Resilience Plans and shaping the future of the EU's strategic autonomy and competitiveness.
