EU Parliament, governments' deal on EU long-term budget seen Monday

FILE PHOTO: EU Commissioner for Budget Johannes Hahn gives a news conference on the first issuance of EU social bonds under the temporary support to mitigate unemployment risks in an emergency (SURE), at European Commission in Brussels, Belgium October 21, 2020. Olivier Hoslet/Pool via REUTERS

BRUSSELS (Reuters) - The European Parliament and the bloc’s national governments are likely to reach a deal on the EU’s 1.1 trillion long-term budget for 2021-2027 on Monday, the European Commission’s Budget Commissioner Johannes Hahn said.

The long-await agreement will come after negotiators have reached a deal on Thursday on one of the main stumbling blocks -- the link between EU money and governments’ respect for the rule of law.

“Today’s agreement will trigger additional dynamics,” Hahn told Reuters. “I would expect a deal on the whole Multi-annual Financial Framework on Monday.”

Among other issues that have delayed an agreement was the European Parliament’s demand to increase by 39 billion euros spending on research and development, education, health and security. EU governments, represented by the German EU presidency, were offering only up to 10 billion.

Reporting by Jan Strupczewski