News
BackIt took the European Commission, the EU Parliament and the Council more than two years to negotiate the future EU budget for 2014 to 2020; this week, the MEPs in the plenary of the European Parliament approved the Financial Framework. The agreement had been preceded by months of tug-of-war between Council and European Parliament. Given the fact that the negotiations took far longer than originally planned, one can expect significant delays until the new EU Programmes are up and running.
In the end, the differences between Council and European Parliament were no longer concerned with the next seven-year EU Financial Framework, but with the payment of the outstanding funds for EU projects from the current Financial Framework. Even though the Council always supported the EU Commission to pledge certain funds, hence conclude contracts for new EU projects, it was less generous when it came to paying. During the past years, payment volumes lagged behind committed volumes. Hence, the payment gap became increasingly wider. The European Parliament therefore made it a condition to pay all old invoices and to close the gap. Due to the fact that the Council has now more or less relented, thus releasing EUR 3.9 billion to pay unpaid invoices, the European Parliament has now been able to give its approval.
The next EU Financial Framework will have a total volume of EUR 960 billion (obligations; the actual payments will amount to EUR 908 billion). This sounds a lot; however, these are funds for seven years in total - commencing in 2014. The volume is equivalent to about 0.95 percent of the EU Gross Domestic Product. Hereinafter is a short overview of the allocated funds for individual policy areas:
•According to the EU Commission, about EUR 70 billion, hence EUR 10 billion p.a. will be available to the European Social Fund. These funds will among other be used for further education and training measures, for more equal opportunities, measures against discrimination or for modernising employment services.
•EUR 6 billion shall be dedicated to promote youth employment; the funds may be used in 2014 and 2015 already.
•Fairly meagre are the funds allocated to consumer policy: the budget for seven years only amounts to EUR 189 million in total.
•About EUR 15 billion in total shall be made available for students within the scope of the Erasmus Programme, to enable them to study abroad. Hence, funds have been increased by 40 Percent.
•Also increased were the funds allocated for research projects. In this case the volume of the Horizon 2020 Programme shall be EUR 80 billion - compared to the current Financial Framework this is equivalent to an increase of about 30 percent.
•Under the heading Connecting Europe, EUR 33 billion will be made available to transport and energy infrastructure projects. About EUR 26 billion shall flow into transport projects, EUR 6 billion have been earmarked for the energy sector and slightly over EUR 1 billion for broadband networks. Here too, compared to the current Financial Framework the volume is higher.
•However, regional policy will have to make do with far less money from 2014. Overall, an amount of almost EUR 367 billion has been set aside. About EUR 75 billion will be available for the Cohesion Fund and EUR 185 Billion for regional convergence. Slightly under EUR 36 billion have been allocated for transition regions. Regional cooperation shall be furnished with about EUR 10 Billion.
•Agricultural policy can look forward to almost EUR 313 billion; supplemented by funds from the so-called Agriculture and Rural development, i.e. about EUR 95.6 billion. This policy area as well as the regional policy had its budget cut.
Due to the fact that the agreement on the new Financial Framework has been achieved rather late, one can also expect delays concerning the start of the new EU Programmes. Even though preparations at EU Commission and EU Member States level are running at full speed, work can only be finalized once the respective volumes for the individual policy areas have been clarified.
The next EU Financial Framework will have a total volume of EUR 960 billion (obligations; the actual payments will amount to EUR 908 billion). This sounds a lot; however, these are funds for seven years in total - commencing in 2014. The volume is equivalent to about 0.95 percent of the EU Gross Domestic Product. Hereinafter is a short overview of the allocated funds for individual policy areas:
•According to the EU Commission, about EUR 70 billion, hence EUR 10 billion p.a. will be available to the European Social Fund. These funds will among other be used for further education and training measures, for more equal opportunities, measures against discrimination or for modernising employment services.
•EUR 6 billion shall be dedicated to promote youth employment; the funds may be used in 2014 and 2015 already.
•Fairly meagre are the funds allocated to consumer policy: the budget for seven years only amounts to EUR 189 million in total.
•About EUR 15 billion in total shall be made available for students within the scope of the Erasmus Programme, to enable them to study abroad. Hence, funds have been increased by 40 Percent.
•Also increased were the funds allocated for research projects. In this case the volume of the Horizon 2020 Programme shall be EUR 80 billion - compared to the current Financial Framework this is equivalent to an increase of about 30 percent.
•Under the heading Connecting Europe, EUR 33 billion will be made available to transport and energy infrastructure projects. About EUR 26 billion shall flow into transport projects, EUR 6 billion have been earmarked for the energy sector and slightly over EUR 1 billion for broadband networks. Here too, compared to the current Financial Framework the volume is higher.
•However, regional policy will have to make do with far less money from 2014. Overall, an amount of almost EUR 367 billion has been set aside. About EUR 75 billion will be available for the Cohesion Fund and EUR 185 Billion for regional convergence. Slightly under EUR 36 billion have been allocated for transition regions. Regional cooperation shall be furnished with about EUR 10 Billion.
•Agricultural policy can look forward to almost EUR 313 billion; supplemented by funds from the so-called Agriculture and Rural development, i.e. about EUR 95.6 billion. This policy area as well as the regional policy had its budget cut.
Due to the fact that the agreement on the new Financial Framework has been achieved rather late, one can also expect delays concerning the start of the new EU Programmes. Even though preparations at EU Commission and EU Member States level are running at full speed, work can only be finalized once the respective volumes for the individual policy areas have been clarified.