The Council and the European Parliament have agreed on the EU budget for 2021, based on the multiannual financial framework for 2021-2027 that has yet to be agreed by the EU.
The Council and the European Parliament have agreed on the EU budget for 2021, based on the multiannual financial framework for 2021-2027, which is currently being blocked by Hungary and Poland.
According to the agreement, the total commitments in the 2021 EU Budget are set at €164.2 billion. €800 million are kept available under the expenditure ceilings of the next multiannual financial framework to give the EU sufficient leeway to react to unforeseeable needs that may arise next year, including in relation to the COVID-19 crisis. Total payments amount to €166.1 billion.
Priorities
Funding under the draft budget has been directed towards mitigation of the effects of the COVID-19 pandemic, support for a sustainable recovery and the EU’s green and digital transitions, in line with the priorities addressed in the next multiannual financial framework.
The budgetary conciliation period laid down in the treaties will end on 7 December 2020. As the Council and the Parliament will not sign a joint text in the conciliation committee during that period, due to the fact that the adoption of the multiannual financial framework is still pending, the Commission will have to present a new draft budget.
If it is not possible to adopt the EU budget for 2021 by 1 January 2021, the system of provisional twelfths will apply. This will considerably restrict possibilities to fund EU policies and programmes from the beginning of next year.
