EU Plenary on the post 2020 budget. Holes and cash flows pre 2020

May 2, Brussels, Commission and Parliament for revenue and expenditure since 2020
EU Plenary on the post 2020 budget. Holes and cash flows pre 2020
30 April 19:38 2018 Print This Article

MEPs will discuss on Wednesday 2 May, just after the Labor Day, how to work on a better European budget after 2020.
The bulk of the European Union revenue was aimed at a large cauldron without any pre-destination to a specific budget line. This has ensured flexibility and freedom for political choices with the shifting of funds from one heading to the other based on changing countries’ needs or changing the political direction of the Union.

Up to now, however, there is a 6.6% of the European budget which has its own specific allocation: 10 billion, 270 million and 600 thousand euros to pre-determined expenditure chapters to provide some transparency and to guarantee certain and relatively certain safe from any spillage in favor of other expenses.
The part of the pre-allocated European budget is fueled by recoveries from the costs already incurred, in particular for the common agricultural policy (3 billion 423 million 500 thousand out of 5 billion 417 million 600 thousand), in the form, for example, of fines (Italian farmers they know it well); possible repayments of advances paid under some funds, such as social, cohesion, regional development (€ 420.1 million); contributions from Efta countries (European Free Trade Association), ie Switzerland, Iceland, Liechtenstein, Norway or those candidates to join the Union in some EU activities: 386 and 24 million, respectively. One billion and 532 million euros come from contributions from third countries (eg Ciina or US) to EU projects and another billion and 971 million comes from countries with the specific purpose of assisting refugees in Turkey, based on agreements close with the country of Erdogan with which the EU has committed itself until 2020.
This revenue from the European budget is largely destined for the same items from which it comes. A cash flow: it constitutes 6.6% of the European budget, but it is distributed in a rather unequal way. The majority, 4 billion and 72 million, is earmarked for “Sustainable growth, natural resources”, which includes the CAP (common agricultural policy), so to speak.
Another 2 billion and 558 million and 500 thousand go to the chapter on “Competitiveness for growth and employment”. It is the one that deals with education, training, integration, social policy. Here, among other things, the revenue from research activities for the benefit of third parties is probably included. In this case, the proportion of expenditure from assigned revenue, so in a sense blocked in this item, is 13.5%.
“Global Europe” is a small but important budget item, because it concerns the whole EU foreign policy, and as much as 28.6% of its budget is in a certain sense “reserved” because it comes from already allocated revenue. In this case it concerns the financing of refugee assistance in Turkey. Less than a billion, then the crumbs, go to other items of expenditure such as security, administration. This until 2020.
Wednesday 2 May Parliament and Commission will discuss the postings for the post-2020 period.

Print this entry

  Categories:
view more articles

About Article Author

Nicole Volpe
Nicole Volpe

View More Articles