Today, EU Budget Commissioner Günther Oettinger, will present the plans, in Brussels, for the next Multiannual Financial Framework (MFF) 2021-2027. The financial envelope for the current period (2014-2020) accounts for about €1.000 billion euros, and the next is expected to be higher.
However, Brexit is making the equation more difficult, with a 14 billion euro gap per year in the European budget. The timing is particularly bad for the EU as it is trying to finance new policies. Indeed, a shift funds towards new priorities such as defence, border control and the digital economy is to be expected.
The Common Agricultural Policy and cohesion funds, respectively accounting for 37% and 35% of EU current budget are also targeted. Eastern countries are the main beneficiaries of cohesion funds in particular, and will lose a lot of their advantages. This part of the budget will be redirected to tackle mass youth unemployment in southern member states such as Italy and Spain.
The European Commission wants the budget agreed rather quickly, before the next European Parliament elections in May 2019 but it seems a little unrealistic.
For further information:
- Euractiv.com « Brussels begins big battle on post-Brexit budget » https://www.euractiv.com/section/eu-priorities-2020/news/brussels-begins-big-battle-on-post-brexit-budget/
- Financial Times « Brussels seeks to increase seven-year EU budget to €1.25tn » https://www.ft.com/content/e4aa3004-4d5a-11e8-97e4-13afc22d86d4
- European parliament BUDG committee (IN-DEPTH ANALYSIS) « The next Multiannual Financial Framework (MFF) and its Duration » http://www.europarl.europa.eu/RegData/etudes/IDAN/2017/603798/IPOL_IDA(2017)603798_EN.pdf