On Wednesday 24 June, the European Commission adopted a draft European Union budget for 2021, which, at current prices, amounts to €166.7 billion in commitments, or 1.19% of the EU27’s Gross National Income (GNI).
This represents a significant decrease - of 9.7% - compared to the 2020 budget (including -25% for cohesion policy), caused by the UK's departure from the EU and the end of the transition period.
The Commission is anticipating receiving €163.5 billion in payments in 2021, i.e. +0.8% compared to 2020.
These figures from the first year of the Multiannual Financial Framework (MFF) 2021-2027 will be supplemented by a total of €211 billion in grants and €133 billion in loans under Next Generation EU, the EU’s recovery plan, designed to overcome the adverse effects of the coronavirus pandemic.
At current prices, the Next Generation EU instrument will involve €809 billion during the period 2021-2024 (compared to €750 billion at 2018 prices). According to the proposal it presented at the end of May (see EUROPE 12494/1), the Commission will borrow this money on behalf of the EU27.
The Commission emphasises that the annual budget and Next Generation EU “will mobilise significant investment in 2021 to address the immediate economic and social damage caused by the pandemic”.
Priority actions. €131.5 billion in loans and around €133 billion in grants will be provided to Member States in 2021 from the annual budget of the EU’s recovery plan, under the Recovery and Resilience Facility.
The Commission also suggests allocating €17.3 billion to the Horizon Europe programme (including €5 billion under the recovery plan), €10.13 billion to the InvestEU programme and €8.28 billion to the Solvency Support Instrument for EU businesses.
The Commission is proposing a budget of €47.15 billion for cohesion policy, to be supplemented by €42.45 billion from the additional REACT-EU budget.
Other budget proposals include €9.47 billion for the Just Transition Fund (including €7.96 billion under the recovery plan), €619 million for the RescEU civil protection mechanism and €1.19 billion for EU4Health, the new health programme (including €1.17 billion under the recovery plan).
The Commission is also proposing to allocate: - €1.34 billion to the Digital Europe programme; - €3 billion to the Connecting Europe Facility; - €2.89 billion to Erasmus+; - €1.1 billion to the Asylum and Migration Fund; - €55.2 billion to the Common Agricultural Policy; - €1.05 million to the European Defence Fund; - €1.9 billion to pre-accession assistance to the EU.
The annual budget is always calculated and presented at current prices. Once the European Parliament and the Council of the EU have reached an agreement on the MFF 2021-2027, including ‘Next Generation EU’, the Commission will adjust the 2021 budget using a letter of amendment.
To consult the draft budget for 2021, go to: https://bit.ly/3dyWgPD (Original version in French by Lionel Changeur)