EU funding for economy, labour, research, security, environment. Alongside with the migration issue

“Do we want an EU able to deliver what citizens expect? Then we need to make sure that it has a robust budget”: Siegfried Muresan, Romanian MEP, is responsible for most of the matters related to the EU’s 2018 budget. On several occasions he highlighted the need to maintain budgetary levels capable of meeting the countless challenges Europe is called to address, whilst keeping in line with the EU’s increased responsibilities, as enshrined in the Lisbon Treaty. Moreover, everyone expects the EU to address countless problems, responding to citizens’ expectations, but the annual budget available remains the same, anchored to 1% of EU-28 GDP. Funded items include measures for economic growth, youth employment, research, security and migrants reception.

The signature after the “conciliation.” The budgetary approval process is rather complex. Commission tabled an initial proposal for the 2018 draft budget past Spring, on May 30^th: at that point the EU Parliament and Council of Ministers, the two budgetary authorities of the EU, took a position on this subject. The Council formally adopted its position on 4 September, while the European Parliament adopted its position on 25 October 2017. The divergence of views of the two bodies made it necessary – as happens every year – to open a “conciliation procedure”, completed on November 18. The EU leaders will officially sign next year’s budget during today’s Parliament plenary in Brussels, due to enter into force on January 1^st.

Funds for 28 Countries. EU Commissioner Günther H. Oettinger, in charge of budget, welcomed this achievement with the following words: “This is a budget for all. It will go to create more jobs, more growth, more investments. It will help young people find jobs and internships. It will help making Europe more secure. Every euro must be spent efficiently and create added value for Europe.” His words echoed those conveyed every year on such occasion. In truth, while announced as consistent, the budget

appears to be rather modest, considering that it should bring added value to 28 Countries

(including the United Kingdom, until it remains in the “common home”). The EU budget envisages 160.1 billion Euros in commitments – namely, the money that can be agreed in contracts in a given year – and 144.7 billion in payment credits (money that will be paid out in 2018). This is the amount deserving special attention.

The various chapters. At a closer glance, the various chapters of next year’s budget envisage 66.6 billion to “smart and inclusive growth” (a 34.9% increase compared to 2017), an item that includes all the investments for economic development, enterprises, vocational training, opportunities for young people, markets, research directed to production, infrastructures… The “sustainable growth – natural resources” chapter will be funded with 56.1 billion Euros (+3.6%): consisting in support to agriculture, breeding, and environmental protection. These two items represent four-fifths of the budget. Other appropriations include “security and citizenship”, foreign policy, and administrative expenses critical to the performance of the EU machine (staff, offices, etc.)

A helping hand to the economy. The details of next year’s appropriations allocated with EU funding (revenue items flowing into the EU budget are almost entirely based on  Member States’ payments according to population, economic strength and VAT) show that “nearly half of the funds – €77.5 billion in commitments – will go to making our economy stronger, our universities more competitive, our companies better equipped to compete on the global market place”, the Commission stated in a release. For example, €2 billion will go to the European Fund for Strategic Investments (EFSI), the core of the Juncker Plan;

€11.2 billion will go to Horizon 2020, the EU research and innovation funding program.

Setting the horizon to the east and to the south. Naturally, EU revenues flow out according to items of expenditure and in accordance with the needs of each Member Country. Solidarity is the underpinning criterion: thus some Member States receive proportionately more (all countries in central and eastern Europe) while richer ones receive proportionately less (such as Germany, France and Italy.) As relates to investment items, young people – declared the Commission – “will get more support and better opportunities to find jobs thanks to €350 million for the Youth Employment Initiative” (a meagre amount, to say the truth.) Support to European farmers – a considerable sum, as usual – amounts to 59 billion. Other resources will go the European Defence Fund, border control, along with support to deal with the migratory challenge. For the Rapporteur, Hon. Muresan, security is one of the priorities: “the EU will unfortunately not be able to solve all of the world’s problems, so we should focus in our external action on our immediate neighbourhood”, he said. “The Russian Federation is becoming more active: it’s very aggressive, it disinforms and it operates with fake news and propaganda. We need to counter that and we need to stand by the side of those countries in the eastern neighbourhood which have embarked on a European path, such as Georgia, Ukraine and the Republic of Moldova. We have to help them build their institutions, fight corruption, strengthen their economy.” “The same applies to the EU’s southern neighbourhood in Northern Africa where many migrants and refugees come from. There we should invest in education, healthcare, infrastructure, food and water. Only then will people stop taking risks in order to come to Europe.”