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The Grand Committee approves the agreement on the EU’s Multiannual Financial Framework

Published 11/30/2020 2:45 PM
Modified 1/4/2021 2:45 PM

The Grand Committee approves the agreement on the EU’s Multiannual Financial Framework

​The Grand Committee adopted the Finnish Parliament’s position on the agreement between the Council of the European Union and the European Parliament on the Multiannual Financial Framework 2021-2027 (MFF) reached on 10 November. In the MFF negotiations, Finland has emphasised the conclusions of the European Council meeting in July. Moreover, Finland sees that the most essential questions regarding the MFF should be treated as a package. 

The Parliament does not have remarks on the Finnish Government position. The Grand Committee decided on the issue after voting. 

The Parliamentary procedure was based on Government communication (UJ 44/2020 & U 45/2018). The Finance Committee provided a statement to the Grand Committee before the latter adopted the Finnish Parliament position.

Decisions regarding the Multiannual Financial Framework are part of a package EU leaders agreed on at the European Council meeting in July. During this autumn, the Grand Committee has discussed, e.g., the EU recovery instrument, the Rule of Law Mechanism and the EU’s own resources. Ultimately, the decision on own resources will need to be ratified in a plenary session of the Finnish Parliament.

The Grand Committee discussed the Single Resolution Fund

Minister of Finance Matti Vanhanen (Centre Party) briefed the Grand Committee on the meeting of the Eurogroup on 30 November. The current proposal would advance the introduction of a common backstop for the Single Resolution Fund (SRF) by two years to the beginning of 2022. Minister of Finance Vanhanen stated that Finland’s long-term goal has been to break the link between the banking sector and taxpayers. The common backstop to the SRF will facilitate borrowing by the Single Resolution Fund and will ultimately be covered by contributions from the banking sector.

The Single Resolution Mechanism (SRM) is a key element of Europe’s banking union. SRM consists of an EU-level resolution authority, the Single Resolution Board, and Single Resolution Fund financed by the banking sector. Its purpose is to ensure an orderly resolution of failing banks with minimal cost to taxpayers and to the real economy. 

After voting, the Grand Committee decided to agree with the Government position to support the advancement of the timetable regarding the common backstop to the SRF given that Finland’s conditions are met.