The new EU budget post 2020. The future is closer than ever
The proposal tabled on the 2nd of May by the European Commission starts a vivid debate on the EU’s long-term budget for 2021-2027 in the months ahead. The proposed 7-years budget of EUR 1279 billion (in current prices), is more than initially expected. By mid-June, the Commission will reveal further details for different policy and funding areas.
In the meantime, it is clear that the first post-Brexit budget focuses heavily on innovation, digitalization, climate change, youth support, but also on security and migration. While modest reductions (5%) of Cohesion and Agricultural Policies allocations are foreseen, the two policies continue to account for the largest share of the multi-annual budget. At the same time, new instruments are proposed to strengthen the link between the EU budget and the European Semester and with the respect of rule of law.
By unveiling the proposal, the European Commission is setting the stage for long negotiations with Member states and the EU parliament. Ultimately it will be the Member states who will make the final decision regarding the 7-year budget and the key legislative framework. The approval of the EU Budget must win unanimous support from all 27 governments. The ambition is to reach an agreement before the EU elections next year and the Sibiu Summit in May 2019.