The European Commission has proposed, on 2 May, a “a pragmatic and modern” long-term budget for the 2021-2027 period.
The Commission proposes a long-term budget of EUR 1,135 billion in commitments over the period from 2021 to 2027, equivalent to 1.11 per cent of the EU27’s gross national income. This level of commitments translates into EUR 1,105 billion (or 1.08 per cent of GNI) in payments.
In real terms, the future long-term budget for 2021-2027 is broadly similar to the one for the current period 2014-2020, taking into account the inclusion of the European Development Fund.
The Connecting Europe Facility, which supports investment in cross-border infrastructure in the transport, energy and digital sectors and connects the EU and its regions, has an overall budget of EUR 42.2 billion. The proposed budget for transport is EUR 30.6 billion including a general envelope of EUR 12.8 billion, and a cohesion fund allocation of EUR 11.3 billion. In addition, the Commission proposes that the Union enhance its strategic transport infrastructures to make them fit for military mobility. A dedicated budget of EUR 6.5 billion is foreseen through the Connecting Europe Facility.
“The new budget is an opportunity to shape our future as a new, ambitious Union of 27 bound together by solidarity. With today’s proposal we have put forward a pragmatic plan for how to do more with less. We will ensure sound financial management through the first ever rule of law mechanism,” the European Commission President Jean-Claude Juncker said.
To fund new and pressing priorities, current levels of funding will need to be increased. Investing now in areas such as research and innovation, young people, the digital economy, border management, security and defence will contribute to prosperity, sustainability and security in the future.
At the same time, the Commission has critically examined where savings can be made and efficiency improved. The Commission is proposing that funding for the Common Agricultural Policy and Cohesion Policy is moderately reduced – both by around 5 per cent – to reflect the new reality of a Union at 27. These policies will be modernised to ensure they can still deliver with less and even serve new priorities.
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