The long-term EU budget

Author (Corporate)
Series Title
Series Details 09.03.18
Publication Date 09/03/2018
Content Type

Further information

On 2 May 2018, the European Commission presented its proposal for the Multiannual Financial Framework for the 2021-2027 period (2021-2027 MFF), outlining the structure of the EU budget and the policy priorities of the EU for a period of seven years, together with proposals on own resources financing the EU budget and a proposal to link the EU budget and the rule of law. A series of further legislative proposals presenting the individual spending programmes was expected later in May and June 2018.

The Commission proposed that the 2021-2027 MFF (commitment appropriations) amounted to €1,135bn in 2018 prices or 1.11% of EU GNI. The previous MFF, converted into 2018 prices and including the European Development Fund (EDF) for comparative purposes, amounted to €1,138bn or 1.03% of EU GNI. Note, however, that this comparison did not take account of the various changes in programmes proposed or the impact of Brexit.

The number of headings would grow from the 2014-2020 MFF to 2021-2027 MFF, from five to seven, and some programmes changed place from one heading to another. Regarding the structure of the 2021-2027 MFF, the Commission proposals had the ambition to align the budget closer to the political priorities, to simplify the structure of the EU budget (i.e. a reduced number of programmes), and to increase the flexibility within and between programmes.
European Union leaders agreed at their informal meeting on 23 February 2018 that the EU should spend more after 2020 on curbing illegal migration, on defence and security, and on the Erasmus+ student-exchange programme. The summit marked a preparatory stage in negotiations on the EU's next long-term budget, known as the Multiannual Financial Framework (MFF), which would span a period of five or seven years, starting in January 2021.

There was no agreement on how to plug the hole in the budget resulting from the United Kingdom's withdrawal from the EU in 2019. Some net-paying countries argued that EU spending should remain at the current level of approximately 1% of EU gross national income, despite new priorities. That could mean cuts in funding available for cohesion and agricultural policies. Another dispute concerned the possibility of linking the receipt of EU funds to respect of EU fundamental values. The European Commission was due to make a detailed post-2020 MFF proposal in May 2018.

This note offered links to a selection of recent commentaries, studies and reports from some of the major international think tanks and research institutes, which discussed the EU's long-term budget and related reforms.

Some older papers on the topic could be found in a previous edition of 'What Think Tanks are thinking' published in January 2017, and further edition in January 2018.

Compiler: Marcin Grajewski

Source Link http://www.europarl.europa.eu/RegData/etudes/BRIE/2018/614541/EPRS_BRI(2018)614541_EN.pdf
Related Links
ESO: Key Source: Multiannual Financial Framework 2014-2020 http://www.europeansources.info/record/multiannual-financial-framework-2014-2020/
ESO: Find further information in ESO on the Multiannual Financial Framework http://www.europeansources.info/advSearchLink?keyword=mff%20financial%20framework%20&searchOption=all
EP: EPRS: At a Glance, March 2018: Post-2020 Multiannual Financial Framework http://www.europarl.europa.eu/RegData/etudes/ATAG/2018/614725/EPRS_ATA(2018)614725_EN.pdf
EP: EPRS: At a Glance, March 2018: Reform of the EU's system of own resources http://www.europarl.europa.eu/RegData/etudes/ATAG/2018/614721/EPRS_ATA(2018)614721_EN.pdf
EP: EPRS: Briefing, May 2018: Multiannual Financial Framework 2021-2027: Commission Proposal - Initial comparison with the current MFF http://www.europarl.europa.eu/RegData/etudes/BRIE/2018/621864/EPRS_BRI(2018)621864_EN.pdf
ECFR: Commentary, 16.04.18: The European budget talks: Financial threat to a global Europe http://www.ecfr.eu/article/commentary_the_european_budget_talks_financial_threat_to_a_global_europe
Chatham House: Expert Comment, 03.05.18: What to Know About the EU’s New Budget https://www.chathamhouse.org/expert/comment/what-know-about-eu-s-new-budget
Centre for European Reform: Policy Brief, April 2018: The EU Budget after Brexit: Reform not Revolution http://www.europeansources.info/record/the-eu-budget-after-brexit-reform-not-revolution/
UCL European Institute: Brexit Blog, 06.05.18: A storm in a tea cup? Why all the fuss around the EU budget https://ucl-brexit.blog/2018/05/08/a-storm-in-a-tea-cup-why-all-the-fuss-around-the-eu-budget/
CEPS: Commentaries, 04.05.18: The Multiannual Financial Framework, where continuity is the radical response https://www.ceps.eu/publications/multiannual-financial-framework-where-continuity-radical-response
Bruegel: Blog, 04.05.18: How large is the proposed decline in EU agricultural and cohesion spending? http://bruegel.org/2018/05/how-large-is-the-proposed-decline-in-eu-agricultural-and-cohesion-spending/
EP: EPRS: Briefing, April 2018: Post-2020 MFF and own resources: Ahead of the Commission's proposal http://www.europarl.europa.eu/RegData/etudes/BRIE/2018/620240/EPRS_BRI(2018)620240_EN.pdf

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