EAPN position paper on the MFF work in progress

1. EAPN position paper on the MFFwork in progress Vito Telesca ExcoMember European Anti Poverty Network Eapn.eu www.eapn.eu

2. Outline • What is the MFF? • MFF Structure and Content • Past work on the MFF • Proposals • What action and next steps?

3. The Multiannual Financial Framework (MFF) • The MFF is not the budget of the EU for seven years. • It provides a framework for financial programming and budgetary discipline by ensuring that EU spending is predictable and stays within the agreed limits. It also allows the EU to carry out common policies over a period that is long enough to make them effective. • This long term vision is important for potential beneficiaries of EU funds, co-financing authorities as well as national treasuries. • (http://ec.europa.eu/budget/mff/introduction/index_en.cfm ) • Strictly linked to new design of Europe (see Future of Europe)

4. 5 MFF Structure and Content For the period 2014-2020, the MFF sets a maximum amount of EUR 963.5 billion for commitment appropriations and EUR 910 billion for payment appropriations. The MFF 2014-20 is divided into six categories of expense ('headings') corresponding to different areas of EU activities: 1 - Smart and Inclusive Growth: a) Competitiveness for growth and jobs b) Economic, social and territorial cohesion 2 - Sustainable Growth: Natural Resources 3 - Security and citizenship 4 - Global Europe 5 - Administration 6 - Compensation

5. 5 Past work on the MFF During the Exco in June was an introductory discussion in plenary, followed by a reflection in small group composed of 11 members. • Questions from the cluster group: a. What are the objectives of this work? b. Who legitimizes us? What is our legitimacy for making proposals? c. What is the decision making process around the MFF and what are the political areas chosen? d. What are our objectives and what are the main policy issues that we want to raise? • The group, despite the short time, has launched a series of proposals (which we will see in next ) and decided that a small group would draft a first proposal to put on the table. • After a mail exchange, some proposals emerged that we propose (in the next slides) to your attention and to the working group.

6. 5 Past work on the MFF Discussion…. - 1 Discussion during the June Exco • the work to fight poverty stays as a budget line in the European Union; • Our knowledge about poverty and the knowledge produced at the local level gives legitimacy. • People experiencing poverty, who also distinguish us from other organizations and the European PeP meeting legitimizes us; • The 20% ring-fenced allocation for social inclusion & poverty reduction, we made the EC and MS to take this commitment and it is very important to keep it; • Citizenship - do we want EU citizens to be active? Citizenship is very important in this process. • We need to look at the narrative on poverty at the local level and at what is the strength of NNs - how is this reflected at EU level.

7. 5 Past work on the MFF Discussion – 2.1 Discussion into the Cluster group • Our action could be divided into two moments: 1 -the first of which is linked to the new scenarios that emerge after the Communication on the Future of Europe and the proposal for a sixth scenario by EAPN that mainly based on the new Design of Structural Funds; 2 - The second most current moment linked to the Commission's budget and the flexibility introduced in the exchange of the MFF that must see an immediate EAPN reaction: The Commission's annual budget and chapters to be funded such as: • 1 - Promote a program that would build on the EASI program and ensure the sustainability of funds for social inclusion networks; • 2 - Promote a new large scale social inclusion program building on the experience of the FEAD program • 3 - Promote a stronger implementation of the Code of Conduct and Partnership Principle Ensure engagement of grassroots organizations as part of civil society engagement in design, delivery and evaluation of the use of grants; • 4 - Promote Round Table of People experiencing Poverty for the contribution to the design, delivery and evaluation of the use of grants;

8. 5 Discussion and proposals – 2.2political and general level We must take advantage of the political momentum because, following the White Paper on the Future of Europe, another path of reflection on the future of European finances has been launched, in which the fight against poverty is cited several times; Unfortunately, the fight against poverty is seen not as situation or problem to be solved but as cause of risk of Sociopolitical tensions and this is unacceptable and shameful. Proposals: It will be necessary that the two working groups (on the MFF and on the sixth scenario) work jointly in light of the discussion paper in light: 1 - As EAPN we have to have a clear view about ourselves, our work, our position and our political input: we are not just an EO or NGO. We are build up because Delors asked us to do so and not the least we are defending democracy by keeping people within society.

9. 5 Discussion and proposals – 2.3political and general level 2 - There is an urgent need for a full budget line for Poverty Attack and Including Inclusion. For this reason we propose to you to put into the Multiannual Financial Framework of the European Commission such a budgetline, to which EAPN is directly attached. 3- Push to strengthen the attack an tax evasion and tax exceptions and use a significant part of the new money to end poverty within our Union. 4- Defend an ESF program and 20% (or more) ring fencing for social inclusion spending; 5 - Re-launching immediately the proposal of a Directive Framework on Minimum income also in the light of the new European scenarios and the proposed sixth EAPN scenario; 6 - Reopen a path of establishing strong alliances to re-launch our proposals (Trade Unions, European Organizations, European Parliament, Economic and Social Council, Committee of Regions, Member States of good will etc. etc. 7- Establish measures to strengthen the participation of civil society in community policies

10. Discussion and proposals – 2.4specific funds 1 - Promote a program that would build on the EASI program and ensure the sustainability of funds for social inclusion networks; 2 - Promote a new large scale social inclusion program building on the experience of the FEAD program; 3 - Promote a stronger implementation of the Code of Conduct and Partnership Principle Ensure engagement of grassroots organizations as part of civil society engagement in design, delivery and evaluation of the use of grants; 4 – Promote regular Round Table or meeting of People experiencing Poverty for the contribution to the design, delivery and evaluation of the use of grants; 5- Connect the ESF with EAFRD and ERDF (those programmes have important budgets). 6- Establish measures of economic investment in order to foster an inclusive development.

11. Perspectives 1 e appeal to react The European Commission (EC) proposed, on the mid-term review, to make a simplification revision of the financial rules (so called ‘Omnibus’): Revision of the following sectorial regulations: 1301/2013 on European Regional Development Fund (ERDF) 1303/2013 on Common Provisions Regulation (CPR) 1304/2013 on European Structural Funds (ESF) 223/2014 on Fund for European Aid to the Most Deprived (FEAD) 1296/2013 on Employment and Social Innovation (EaSI) This process is in the trilogue negotiations between the EC, the Parliament and the Council.

12. Perspectives 2 e appeal to react • The EMPL Committee though deals with the ESF, EaSI and FEAD. • EaSI includes access to the following axes: • PROGRESS, which includes operational grants to EU NGOs (61%) (funding line of EAPN and many other European networks…) • EURES on intra EU job mobility (18%) • Microfinances and Social Entrepreneurship (21%) • These percentages are actually, but the EC wants the new regulation more flexible and is proposing earmarking of PROGRESS to be decreased from 61% to 18% (!), in line with the two other axis that should also be on 18%. • The EC also proposes to be deleted the thematic priorities. • The Council is more in line with the European Parliament, proposing a decrease from 61% to 45%. • DG EMPL is proposing also to merge ESF-EASI and FEAD into one single funding programme, similar to Erasmus+. The programme would be partly managed by the EC and Member States and partly by the EC alone.

13. Perspectives 3 e appeal to react • Last news….. • Outputs: Appel; Campaign; Document; Press;

14. 5 What action and next steps During Dublin Exco: • Continue the work… • Discussion about proposals; • Proposals of action and output; After Dublin: • The Cluster group define actions and outputs Thank you for your attention!