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There is an agreement on multi-annual budget of the European Union. The leaders of the 27 member states, who met during the last EU Council, approved the terms of the global financial package, defined last month by German presidency of the Council and of the negotiators of the European Parliament.
The package integrates the financial framework 2021-2027 – which will have an endowment of 1,074.3 billion euros – with the Recovery Fund, a recovery instrument that will inject into the continental coffers 750 billion. Therefore, the stalemate caused by the obstruction of Poland and Hungary has been overcome, thanks mainly to the good offices of Angela Merkel who have allowed us not to go bankrupt in the hottest weeks of the year.
Below are the terms of the agreement. achieved by top officials of the continent who, in addition to the Recovery Fund, will lay the foundations for the green and digital transition of the European Union.
EU budget: what it offers
The white smoke came with a tweet. Late yesterday afternoon, Thursday 10 December, the President of the European Council, Belgian Charles Michel, announced the conclusion of work on the multiannual financial framework and the recovery fund.
Therefore, that veil of uncertainty that hung over the Brussels summit for days has been swept away. As is known, in recent weeks Poland and Hungary had decided to veto the European instrument of economic aid due to the conditionalities linked to the rule of law.
The impasse, overcome thanks to the extraordinary diplomats of German Premier Angela Merkel, would have forced the European Union the adoption of a provisional budget yearor for the first time in continental history. Not only that: as the EU Budget Commissioner, the Austrian Johannes Hahn, admitted in recent days, Warsaw and Budapest ran the risk of being effectively expelled from anti-Covid economic aid, with the European bureaucratic machine already advancing towards a new solution. limited to 25 states.
The agreement, which is undoubtedly a success for the European institutions, is rooted in commitment. The receipt of funds will continue to be anchored in compliance with the principles and values promoted by the European Union, but, unlike what was originally determined, it could take at least a year and a half to activate the procedure for blocking funds in case of infringement . This is the moment that will allow Poland and Hungary to breathe.
Meanwhile, the 750,000 million euros contributed by the Recovery Fund they may begin to flow into the coffers of the Member States. Of these, 209 billion will be allocated to Italy to finance projects aimed at relaunching and renewing the national economy. Prime Minister Conte rejoices, who on the sidelines of the EU Council declared: “Now full throttle with the deployment phase – we just have to run”.
1.8 trillion for a green and digital Europe
Not just getting over the stagnation on the Recovery Fund front. The negotiations of the 27 heads of state and government during the Council of the EU also resulted the approval of the multiannual financial framework 2021-2027 which, together with the financial aid instrument, will constitute a global package of 1,824.3 million euros.
Programs like Europe horizon, EU for health me Erasmus +, thanks to a budget of 15,000 million euros divided into additional funds (12,500 million) and redistributions (2,500 million).
But the need to treat effectively environmental challenges in the next years. In this sense, the European Union has set itself more ambitious objectives in terms of biodiversity and climate.
Defense-related expenses also increaseranging from € 500 million in 2014-2020 to € 7 billion in the new budget. A loan of 5,000 million euros is also planned for the European Peace Mechanism, a European instrument considered somewhat controversial due to the export of arms to conflict zones foreseen by its operation.
The European institutions, in agreement with the Member States, have also decided press the accelerator on the front of the digital transition, also reinforced by the national projects that are being defined and that must be made known to Brussels to access anti-Covid funds.
