In 2020, Parliament’s negotiators successfully fought for the biggest EU financial package ever to tackle the repercussions of the COVID-19 crisis and finance a new generation of EU programmes for 2021-2027. MEPs achieved a €16 billion increase for flagship programmes such as EU4Health, Horizon (research), InvestEU and Erasmus+ in the EU’s long-term budget. To further support Ukraine and boost EU industrial autonomy, as well as addressing migration, MEPs insisted on a mid-term revision and upscaling of the long-term budget, which the Commission proposed in June 2023, in line with Parliament’s demands. A provisional agreement with member states was voted into law in February 2024, integrating the Ukraine Facility and the "Strategic Technologies for Europe Platform" (STEP).
The initial EU long-term budget and a €750 billion (more than €800 billion in current prices) recovery instrument (see also NextGenerationEU, RRF) aim to get European societies better prepared for crises and to boost the digital and green transitions, with particular support for young people, SMEs, rescue and health systems and research. Additional measures in support of regions and vulnerable populations (e.g. the Just Transition Fund and the Social Climate fund) were adopted in 2021 and complemented in 2023 to accelerate actions to reach climate neutrality and cut dependence on Russian energy (REPowerEU).
Parliament also secured a legally binding roadmap for the introduction of new own resources to cover the repayment of the NextGenerationEU borrowing. In November 2023, MEPs paved the way for three new sources to feed directly into the European Union’s budget: revenue from the Emissions Trading System, the Carbon Border Adjustment Mechanism, and on corporate profits.
EU solidarity based on shared values and objectives
As the EU’s discharge authority, Parliament keeps a close eye on the budget spending and on the national recovery plans financed through the Recovery and Resilience Facility (RRF). For member states to receive EU funding, they scrupulously need to respect EU climate and digital objectives as well as the rule of law and fundamental EU values. Parliament exerted constant pressure on the Commission to retain any payments under the “rule of law conditionality”, agreed with Council in 2020, if those requirements are not fulfilled. Notably, Parliament contested the Commission’s unfreezing of €10.2 billion in EU cohesion funds for Hungary and introduced a case (C-225/24) at the European Court of Justice. Moreover, MEPs succeeded in enhancing scrutiny and transparency of the RRF: the 100 biggest beneficiaries of RRF funding have to be published by each member state.
Fair wages and tax transparency
MEPs negotiated with member states to secure national minimum wages and to ensure that men and women receive equal pay for equal work, across the EU.
MEPs negotiated with member states to secure national minimum wages and to ensure that men and women receive equal pay for equal work, across the EU. Parliament and Council agreed on a new law to bring in social justice and dignity for workers and put an end to abusive practices by service providers operating via digital platforms. The so-called platform work directive puts an end to bogus self-employment and introduces the first ever EU-rules on the use of artificial intelligence in the workplace.
MEPs also call on member states to strengthen minimum income schemes and ban the exploitation of trainees. As work conditions in the cultural and creative sectors differ greatly between member states, they called for new EU legislation on the social status and working conditions of artists and other professionals working in culture. In a separate report, MEPs in particular seek ways to ensure musicians are remunerated fairly by music streaming platforms.
An outright ban on products made with forced labour, be it inside or outside the EU, will oblige manufacturers of such goods to withdraw their products from the EU single market and donate, recycle or destroy them.
For the first time, Parliament also adopted transparency requirements for short-term rental services to give municipalities better oversight of their local short-term rental market via platforms and protect travellers from fraudulent offers.
Furthermore, fair taxation and the fight against corruption and against money laundering remain high on Parliament’s agenda. To effectively enforce the new common rulebook, MEPs agreed with member states to set up a European Anti-Money Laundering Agency in Frankfurt (Germany). Parliament also adopted new rules for financial operations in cryptocurrencies, so they can be traced in the same way as traditional money transfers. Negotiators from the European Parliament and the Council of the EU also reached an agreement on new legislation to boost the freezing and confiscation of criminal assets and crack down on violations of EU sanctions.
Economic stability and support for EU industries to drive the digital and green transitions
In February 2023, MEPs voted in favour of establishing a new EU funding instrument to anchor and re-locate industrial production capacities in Europe. A first funding tool (STEP) has been set up in the overall revision of the MFF. Legislation on decarbonising gas supply and reforming the electricity market to stabilise prices for consumers was adopted in April 2024. Parliament also approved new rules to secure sufficient supply of critical raw materials in 2023 and adopted the “Net Zero Industry Act” to boost Europe’s green tech economy. This “competitiveness package” should boost the production and take-up of clean energy technologies, and help EU industries produce high-quality jobs and stimulate economic growth to reach the Green Deal goals.
With an eye on stimulating small-scale economic growth, MEPs agreed with member states on establishing instant payment rules for euro transfers to be performed in 10 seconds at no extra cost and on easing SMEs’ access to capital markets. In the last plenary of the 9th term, Parliament approved a series of rules agreed with member states to increase financial and economic stability in the EU. This includes an agreement with member states on economic governance coordination in the EU and on restoring national budgetary discipline as of 2024 while making the rules clearer, conducive to investment, more tailored to each country’s situation, and more flexible.
MEPs also gave a green light to the review of the common agriculture policy (CAP) to ease the administrative burden on EU farmers and build in more flexibility for fulfilling greening conditions.