The governments of the EU countries and the European Parliament have reached an agreement on the budget for next year. The European Union will spend 153.6 billion euros next year, an increase of 3.4 percent compared to 2019. The EU is allocating extra money for Climate, economic growth and innovation, and the fight against youth unemployment.
The member states and the parliament reached the agreement at the last minute before the deadline. The negotiations had dragged on for weeks because the parliament wanted to spend more (up to slightly over 159 billion) and the member states wanted to keep the budget flat.
The total expenditures will amount to 153.6 billion euros next year. A large part of that, over 72 billion, goes to measures stimulating economic growth. This includes funding for research and innovation, energy and transport infrastructure, but also for training (for example through the Erasmus exchange program) and the fight against youth unemployment.
Furthermore, extra money is also going towards climate measures. Additionally, the European Union will spend extra money on asylum and migration. Funds have been found in part by reducing support for agriculture. Also, Turkey will receive less money, about 85 million euros less than planned, because Europe considers that Turkey is further distancing itself from European values.
Now that there is an agreement on the 2020 budget, negotiations will begin on the multiannual budget for the coming years (2021 – 2027). There are very diverse opinions and scenarios about that multiannual budget, ranging from cuts to higher contributions from the EU countries. This is also related to the new policy plan of the new European Commission.
The 2020 budget assumed that the British would still pay in full. Günther Oettinger, EU Commissioner for Budget, is pleased that financial progress is provisionally secured. He once again calls for quick decisions on the multiannual budget (2021-2027). The EU countries are deeply divided on this issue. If it proves impossible to reach an agreement, the 2020 budget will serve as the basis.