EU’s budget for 2021: recovery and resilience in action

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

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