Fri, 13 Dec 2019

BRUSSELS, Belgium - The European Council and the European Parliament have reached agreement on an EU budget for 2020.

The blueprint strongly focuses on growth and competitiveness, climate action and other EU priorities such as security and management of migration.

Total commitments are set at €168.7 billion, an increase of 1.5% compared to the 2019 budget.

€1.5 billion have been kept available under the expenditure ceilings of the multi-annual financial framework for 2014-2020, allowing the EU for unforeseeable needs.

Total payments amount to €153.6 billion, rising 3.4% from 2019. This increase reflects the continuing implementation of the 2014-2020 programmes at full speed. The aim is to ensure timely payments to beneficiaries and avoid a substantial accumulation of payment claims over the next few years, in particular in relation to cohesion policy.

The figures are based on the premise that the UK will continue to participate fully in the financing and implementation of the EU budget for 2020.

Kimmo Tiilikainen, State Secretary, Ministry of Finance of Finland, chief Council negotiator for the 2020 EU budget

"Next year's budget strengthens support for the EU's priority areas and best-performing programmes. It also ensures a realistic approach, taking into account the interests of taxpayers and the need to cater for new challenges that may arise in 2020. I would like to highlight in particular the move to further "green" the EU budget and ensure that it works in support of the EU's climate agenda," Kimmo Tiilikainen, State Secretary, Ministry of Finance of Finland, and chief Council negotiator for the 2020 EU budget said Monday.

The EU has set itself the goal of dedicating at least 20% of EU expenditure to climate protection in the period 2014-2020. To help meet this goal, the Parliament and the Council have agreed to increase the focus on climate-related actions in several areas such as research and development (Horizon 2020), transport and energy infrastructure (Connecting Europe Facility) and the EU's external action. Additional funds have also been allocated to the EU's LIFE programme, which will receive €590 million, and the European Environment Agency for recruiting new staff (+6) to support the fight against climate change.

Other important elements of the agreement on the EU budget for 2020 include the following:

  • In order to support growth and competitiveness, €25.3 billion (+7.9% compared to 2019) have been allocated to programmes under subheading 1a (competitiveness for growth and jobs). This includes more funds for Horizon 2020 (€13.5 billion in total, +8.8%), European satellite navigation systems (EGNOS and Galileo) (€1.2 billion, +74.8%) and the energy strand of the Connecting Europe Facility (€1.3 billion, +35.0%). Erasmus+ will receive €2.9 billion (+3.6%) to support youth exchanges.
  • To fight youth unemployment in the most affected regions, the envelope for the Youth Employment Initiative has been set at €145 million.
  • In the fields of security and migration, the Asylum, Migration and Integration Fund has been allocated €949 million for management of migration, including to support the frontline member states. The Internal Security Fund will receive €501 million. Additional funding compared to 2019 will be provided for several agencies, including for new staff to be recruited by FRONTEX (+191), the European Asylum Support Office (+82), Europol (+24) and the European Public Prosecutor's Office (+10). Eurojust will receive an additional €3.7 million.
  • The EU's external action instruments have been reinforced to cover the EU's contribution to the Syria pledge as agreed during the Brussels III conference on Syria and to combat the root causes of migration via the North Africa window of the EU Trust Fund for Africa.
  • As in 2018 and 2019, the pre-accession funds for Turkey have been significantly reduced compared to the draft budget proposed by the Commission (-€85 million) given the distancing of Turkey from EU values. More funds, on the other hand, have been provided for the Western Balkans.

The Council and the Parliament also agreed to further discuss the use of unspent funds from previous years related to research projects under Article 15(3) of the Financial Regulation.

Next steps

The Parliament and the Council now have 14 days to formally approve the agreement reached. The Council is expected to endorse it on 25 November. The vote in the European Parliament is scheduled for 27 November.

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