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In the beginning of December 2020, the three EU legislative institutions reached an informal political agreement on the EU budget for 2021, the first under the seven-year MFF-27 budget. The Council’s final position was finally supported by the Parliament with a strong majority on 18 December. For two main directions in the 2021 budget are allocated over €100 billion, i.e. a) agro-food and fisheries sectors (with some resources for and crisis management); and b) supporting economic recovery and boosting investment in economic, social and territorial cohesion.
The European Union’s annual budget is about €164 billion in commitments and €166 billion in payments during 2021. The first under the 2021-27 multiannual financial framework, will allow the EU to mobilise significant financial resources to deal with the recovery response in the coronavirus pandemic and to start a sustainable resilient programs in the states towards creating greener, digital and sustainable national economies.
Priorities in recovery
The budget reflects the European priorities, which are relevant to ensure a sustainable recovery in the member states with the following allocations:
- €48.2 billion in supporting recovery, boosting investment in economic, social and territorial cohesion.
- €55.7 billion for the Common Agricultural Policy (and €760.7 million for the European Maritime and Fisheries Fund to support European farmers and fishermen), as well as to strengthen the resilience of the agro-food and fisheries sectors and to provide the necessary scope for crisis management;
- €1.1 billion for the “digital Europe program” to support the digital transition and the Union’s cyber-defenses
- €1.1 billion under the Just Transition Fund and €738.5 million under the LIFE program to support environment and climate action;
- €2.8 billion for the Connecting Europe Facility for an up-to-date, high-performance transport infrastructure to facilitate cross-border connections;
- €575 million for the Single Market Program, with €36.2 million and €126.9 million respectively for supporting cooperation in the fields of taxation and customs;
- €2.7 billion for Erasmus Plus to invest in young people, as well as €306.4 million for the cultural and creative sectors through Creative Europe program;
- €873.3 million for the Asylum and Migration Fund and €533.5 million for Integrated Border Management Fund to step up cooperation on external border management as well as for the EU’s migration and asylum policy;
- €175.6 million for the Internal Security Fund and €945.7 million for the European Defence Fund to support European strategic autonomy and security;
- €12.1 billion to support European neighbourhood cooperation and international development, as well as €1.9 billion for pre-accession assistance, including in the states in Western Balkans.
Supplement: The full breakdown of the EU-2021 budget by headings, € billions (rounded figures):
|
Commitments |
Payments |
|
|
1. Single Market, Innovation and Digital |
20,8 |
17, 2 |
|
2. Cohesion and Values |
52,9 |
66,1 |
|
– Economic, social and territorial cohesion |
48, 2 |
61,9 |
|
– Resilience and Values |
4,7 |
4,3 |
|
3. Natural Resources and Environment |
58,6 |
56,8 |
|
-Market related expenditure and direct aids |
40,3 |
40,3 |
|
4. Migration and Border management |
2,3 |
2,6 |
|
5. Security and Defence |
1,7 |
0,7 |
|
6. Neighbourhood and the world |
16,0 |
10,8 |
|
7. European Public Administration |
10,4 |
10,4 |
|
– Thematic special Instruments |
1,4 |
1,3 |
|
Total appropriations |
164,2 |
166,0 |
Source: https://ec.europa.eu/commission/presscorner/detail/en/IP_20_2489
Additional information in: – MFF website; – Recovery website; – Factsheet on the 2021 budget