Commission proposes draft EU budget 2022 aimed to speed up recovery

It will prioritise green and digital spending in order to make Europe more resilient in the future

Photo: AP Commissioner Johannes Hahn

The Commission on Tuesday proposed an annual EU budget of €167.8bn for 2022, to be complemented by an estimated €143.5bn in grants under NextGenerationEU, EC Press service reported. Their combined firepower will mobilise significant investments to boost the economic recovery, safeguard sustainability, and create jobs. It will prioritise green and digital spending in order to make Europe more resilient and fit for the future.

“Today, we are putting forward unprecedented levels of financial support to reinforce Europe´s recovery from the health and economic crises, Commissioner Johannes Hahn, responsible for the EU Budget, said. “We will help the people, companies and regions that have been most affected by the pandemic. We will invest in Europe's resilience and its modernisation via the green and digital transition“, he added.

The draft budget 2022, boosted by NextGenerationEU, directs funds to where they can make the greatest difference, in line with the most crucial recovery needs of the EU Member States and our partners around the world.

The budget reflects the EU's political priorities, which are relevant to ensure a sustainable recovery. To that end, the Commission is proposing to allocate (in commitments):

€118.4bn in grants from NextGenerationEU under the Recovery and Resilience Facility (RRF) to mitigate the economic and social impact of the coronavirus pandemic, and to make EU economies and societies more sustainable, resilient and better prepared for the challenges and opportunities of the green and digital transitions.

€53.0bn for the Common Agricultural Policy and €972m for the European Maritime, Fisheries and Aquaculture Fund, for Europe's farmers and fishers, but also to strengthen the resilience of the agri-food and fisheries sectors and to provide the necessary scope for crisis management. The European Agricultural Fund for Rural Development (EAFRD) could receive an extra €5.7bn from NextGenerationEU.

€36.5bn for regional development and cohesion, reinforced by €10.8bn from NextGenerationEU under REACT-EU to support crisis response and crisis repair.

€14.8bn to support our partners and interests in the world, of which €12.5bn under the Neighbourhood, Development and International Cooperation Instrument — Global Europe (NDICI — Global Europe), and €1.6bn for Humanitarian Aid (HUMA).

€13.1bn for research and innovation, of which €12.2bn for Horizon Europe, the Union's flagship research programme. It could receive an extra €1.8bn from NextGenerationEU.

€5.5bn for European strategic investments, of which €1.2bn for InvestEU for key priorities (research and innovation, twin green and digital transition, the health sector, and strategic technologies), €2.8bn for the Connecting Europe Facility to improve cross-border infrastructure, and €1.2bn for the Digital Europe Programme to shape the Union's digital future. InvestEU could receive an extra €1.8bn from NextGenerationEU.

€17.9bn for investing in people, social cohesion, and values, of which €13.3bn for the European Social Fund Plus to support employment, skills and social inclusion, €3.4bn Erasmus+ to create education and mobility opportunities for people, €401m to support artists and creators around Europe, and €253m to promote justice, rights, and values.

€2.1bn for spending dedicated to space, mainly for the European Space Programme, which will bring together the Union's action in this strategic field.

€1.9bn for environment and climate action, of which €708m for the LIFE programme to support climate change mitigation and adaptation, and €1.2bnfor the Just Transition Fund to make sure that the green transition works for all. The Just Transition Fund could receive an extra €4.3bn from NextGenerationEU.

€1.9bn for protecting our borders, of which €780m for the Integrated Border Management Fund (IBMF), and €758m for the European Border and Coast Guard Agency (Frontex).

€1.9bn to support candidate and potential candidate countries in meeting the requirements of the Union's accession process, chiefly through the Instrument for Pre-Accession Assistance (IPA III).

€1.3bn for migration-related spending, of which €1.1bn to support migrants and asylum-seekers in line with our values and priorities.

€1.2bn to address defence and common security challenges, of which €950m to support capability development and research under the European Defence Fund (EDF), as well as €232m for to support Military Mobility.

€905m to ensure the functioning of the Single Market, including €584m for the Single Market Programme, and close to €200m for work on anti-fraud, taxation, and customs.

€789m for EU4Health to ensure a comprehensive health response to people's needs, as well as €95m to the Union Civil Protection Mechanism (rescEU) to be able deploy operational assistance quickly in case of a crisis. RescEU could receive an extra €680m from NextGenerationEU.

€600m for security, of which €227m for the Internal Security Fund (ISF), which will combat terrorism, radicalisation, organised crime, and cybercrime.

The draft budget for 2022 is part of the Union's long-term budget as adopted at the end of 2020. A significant part of the funds will therefore be dedicated to combatting climate change, in line with the target to spend 30% of the long-term budget and the NextGenerationEU recovery instrument on this policy priority.

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