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Image header Agence Europe
Europe Daily Bulletin No. 12025
Contents Publication in full By article 15 / 32
INSTITUTIONAL / Budget 2019

Commission proposes budget up by 3% and exceeding three ceilings

On Wednesday 23 May, the European Commission presented the draft budget for 2019, which is up 3% on the 2018 budget. This draft stands at €166 billion in commitment appropriations (+3% compared to 2018), or 1% of the gross national income (GNI) of the EU of 28, and €149 billion in payment appropriations (+3% on 2018).

Günther H. Oettinger, the Budget Commissioner, said that the draft 2019 budget was based on the principle that after it leaves the EU as it is scheduled to do on 30 March 2019, the United Kingdom will continue to contribute and participate in the execution of EU budget up to the end of 2020, as if it were still a member state. The 2019 budget will therefore be a normal budget, rather than one marked by Brexit, the Commissioner said.

Ceilings exceeded in three headings. The Commission made use of two flexibility instruments to be able to exceed the ceilings in three headings of the EU budget.

Concerning heading 3, ‘security’, the flexibility instrument has been mobilised to the tune of €927 million due to the refugee and migrant crisis.

There is now no margin left in this heading, or in the following: - heading 4, ‘external action’ (€1.1 billion above the ceiling thanks to the mobilisation of the ‘global commitments margin’, notably for assistance to Syria and the facility for Turkey); - subheading 1b, ‘cohesion’ (exceeded by €38.1 million via the flexibility instrument and €233 million under the commitments margin for extra money for the youth employment initiative).

European economy. The envelope aiming specifically to support economic growth will stand at nearly €80 billion in commitment appropriations in 2019. It provides for: - €12.5 billion (+8.4% on 2018) for Horizon 2020, of which €194 million will go to a new European joint undertaking for high-performance computing; - €2.6 billion for Erasmus+ (+10.4% on 2018); - €3.8 billion for the Connecting Europe Facility (+36.4% on 2018); - €233.3 million more for the youth employment facility (amount corresponding to that from the European Social Fund). 

CAP and cohesion. The Commission anticipates that the programmes of the 2014-2020 cohesion policy will maintain cruising speed in 2019, following encouraging signs noted at the end of 2017, for the amount of €57 billion (+2.8% on 2018). The financing of the agriculture policy is also expected to remain stable, at nearly €60 billion (+1.2% on 2018).

Security. The questions of the management of migration and the borders will receive particular attention this year again.

In addition to the reform of the common European asylum regime and the new entry/exit system for travellers from third countries, the Commission is proposing an extra €1.5 billion for the facility in favour of refugees in Turkey, to help people fleeing conflict in Syria and elsewhere (an extra €500 million will be paid under the current 2018 budget, hence the Commission’s proposal on an amending budget for 2018). 

Support for new initiatives. The draft budget also provides support for new initiatives: - €103 million for the European Solidarity Corps; - €11 million to create a European Labour Authority; - €40 million to extend the Structural Reform Support Programme; - €245 million to create the European Defence Industrial Development Programme (see article); - €150 million to reinforce the response to earthquakes, wildfires and other disasters through a reserve of civil protection capabilities at EU level (‘rescEU’); - €5 million to create the new European Public Prosecutor’s Office. (Original version in French by Lionel Changeur)

Contents

ECONOMY - FINANCE - BUSINESS
SECTORAL POLICIES
INSTITUTIONAL
SECURITY - DEFENCE
EXTERNAL ACTION
CULTURE - SPORT
NEWS BRIEFS
ADDENDUM