On Tuesday 8 June, the European Commission proposed setting the EU budget for 2022 at EUR 167.8 billion in commitment appropriations, which represents an increase of 2.2% compared to the current budget.
To this figure, there should be added EUR 143.5 billion in grants under NextGenerationEU, including EUR 118.4 billion in grants under the Recovery and Resilience Facility (RRF) to mitigate the economic and social impact of the Covid-19 pandemic, and to make EU economies and societies “more sustainable, resilient and better prepared for the challenges posed by green and digital transitions”, according to the European Commission.
With regard to payment appropriations, the figure is EUR 169.4 billion, i.e. +2% compared to the 2021 EU budget.
Johannes Hahn, EU Budget Commissioner, noted at a press conference that the EU budget for 2022 and Next Generation EU will therefore provide a total of EUR 311 billion for assisting with the rebuild and modernisation of our continent.
Next Generation EU, which will provide an additional EUR 807 billion in current prices over the 2021–2023 period, will strengthen key programmes with an additional EUR 143.5 billion in commitment appropriations as earmarked revenue in the 2022 budget. In total in 2022, EUR 311.3 billion will be available in commitment appropriations, which will be supplemented with up to EUR 194.8 billion in loans to Member States.
In order to finance Next Generation EU, the Commission will borrow on the capital markets. Funds will be disbursed in the form of grants or loans through either the Recovery and Resilience Facility or through several EU budget programmes that receive top-up funding from Next Generation EU.
The Commission is proposing EUR 53 billion for the Common Agricultural Policy (CAP) and EUR 972 million for the European Maritime, Fisheries and Aquaculture Fund. The European Agricultural Fund for Rural Development (EAFRD) will benefit from an additional EUR 5.7 billion that it will receive from Next Generation EU.
The European Commission has earmarked EUR 36.5 billion for regional development and cohesion and then an additional EUR 10.8 billion for REACT-EU.
EUR 14.8 billion is proposed for the EU's External Action, including EUR 12.5 billion for the Neighbourhood, Development and International Cooperation Instrument and EUR 1.6 billion for humanitarian aid.
Research and innovation would benefit from EUR 13.1 billion, including EUR 12.2 billion for Horizon Europe (plus EUR 1.8 billion from Next Generation EU).
EUR 5.5 billion is earmarked for European strategic investments, including EUR 1.2 billion for InvestEU, EUR 2.8 billion for the Connecting Europe Facility and EUR 1.2 billion for Digital Europe. InvestEU might also benefit from an additional EUR 1.8 billion (recovery plan).
EUR 4.7 billion is programmed for people, social cohesion and values, including EUR 3.4 billion for Erasmus+.
EUR 2.1 billion is earmarked for spending dedicated to space, mainly for the European Space Programme.
The European Commission also proposes: EUR 1.9 billion for environment and climate action, of which EUR 708 million for the LIFE programme to support climate change mitigation and adaptation, and EUR 1.2 billion for the Just Transition Fund. The Just Transition Fund could receive an extra EUR 4.3 billion from Next Generation EU.
EUR 1.9 billion is earmarked for protecting the EU’s borders, including EUR 780 million for the Integrated Border Management Fund and EUR 758 million for the European Border and Coast Guard Agency (Frontex). EUR 1.3 billion is for migration-related spending, including EUR 1.1 billion to support migrants and asylum seekers.
EUR 1.9 billion is being made available to help candidate and potential candidate countries meet the requirements of the EU’s accession process, chiefly through the Instrument for Pre-Accession Assistance (IPA III).
EUR 1.2 billion is foreseen to address common defence and security challenges, including EUR 950 million to support capability development and research under the European Defence Fund (EDF), and EUR 232 million to support military mobility.
Link to the draft budgetary plan for 2022: https://bit.ly/3gh98gL (Original version in French by Lionel Changeur)