The EU executive suggested compromises ahead of a key meeting on Monday.

BRUSSELS ― The European Commission proposed several changes to its next seven-year EU budget in an effort to avert a rebellion in the European Parliament, according to a document seen by POLITICO.

By giving ground on sensitive issues, the powerful EU executive is aiming to neutralize a threat by a majority of Parliament lawmakers to reject its €1.8 trillion plan to fund the European Union.

The Commission’s move comes hours before a crucial virtual meeting on Monday between Commission President Ursula von der Leyen, European Parliament President Roberta Metsola and Danish Prime Minister Mette Frederiksen, whose country holds the rotating presidency of the Council of the EU.

Monday’s gathering is a last-ditch attempt to broker a compromise in the face of increasingly tense relations between Parliament and Commission. The new budget requires Parliament's approval before it comes into force in 2028.

The Commission proposing changes to its own budget proposal is highly unusual ― and is a response to pressure from the four parties that make up the traditional centrist majority in Parliament.

In October, the European People's Party, the centrist Renew, the Greens and the Progressive Alliance of Socialists and Democrats sent von der Leyen a list of desired changes that were addressed in Sunday’s document.

The proposed tweaks will prove controversial with national capitals, which are currently amending the Commission's proposal and generally oppose giving early concessions to Parliament.

An EU diplomat said that the Commission suggesting formal changes to its own proposal could throw a spanner in the works of the ongoing negotiations in Council.

“[Parliament] see the situation as a way to win an institutional battle” against the Council, they said.

Responding to similar arguments, a European Parliament official said reaching an agreement tomorrow would mean “resolving this issue at at an early stage [so that] we don't have to return to this at a later stage.”

Parliament is opposed to the Commission’s MFF plan over important changes to regional and agricultural payments, which make up around half of the total budget.

A majority of MEPs claim that the proposed reforms will cut Parliament and regional leaders out of decision-making and hand too much power to national governments.

To address these complaints, the Commission on Sunday proposed a “rural target” that would compel governments to spend 10 percent of the total amounts of the national plans on agriculture.

This is in addition to the €300 billion in direct funding for farmers already included in the original proposal in July.

“It’s more or less what we asked for,” said a senior lawmaker who is involved in the discussions.

But several other lawmakers were less positive.

“It is a step in the right direction but not a breakthrough,” said another MEP working on the file.

Another point of contention is the Commission's proposal to merge the regional and agricultural budget into a single cash pot handled by national governments ― who would get significant leeway over how to spend the money.

This has sparked outrage among mayors and regional leaders, who fear they will have no say regarding the funds.

In order to fix this issue, the EU executive has now suggested giving regional leaders more power to determine how the money is being spent ― including by giving them a seat at the table in key planning meetings between national governments and Commission officials.

In a further concession, the Commission proposed guarantees to reduce the risk of national governments cutting payments to more developed regions. This comes on top of a €218 billion guarantee for payments to poorer areas in July.

Finally, the Commission suggested giving Parliament a bigger role in deciding how the EU’s public funding is being spent.

Bartosz Brzeziński and Nick Vinocur contributed to this report.

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