EU budget 2021: EU negotiators agree to kick-start the European recovery

©European Union, 2021, Source: EC - Audiovisual Service©European Union, 2021, Source: EC - Audiovisual Service

On Friday, the three EU institutions reached an informal political agreement on the EU’s budget for 2021, the first under the 2021-2027 EU long-term budget. The agreement is for commitments of €164 billion, and payments of €166 billion. Once adopted, the budget would allow the EU to mobilise significant public funds for a continued EU response to the coronavirus pandemic and its consequences; to kick-start a sustainable recovery and to protect and create jobs. It would start investing in the future to achieve a greener, more digital and resilient Europe. For Friday’s agreement to become an adopted budget that can deliver on the ground, the European Parliament and the Council need to finalise the 2021-2027 multiannual financial framework package. This would follow the agreement from 10 November 2020, when the two institutions with the involvement of the Commission struck a deal on the next long-term budget and NextGenerationEU, the temporary recovery instrument. Once finalised, this would constitute a €1.8 trillion package to help rebuild a post-COVID-19 Europe. Commenting on Friday’s political agreement, Commissioner Johannes Hahn, responsible for the EU Budget, said: “It is great news that we have managed to agree on how next year’s budget should look, which is a positive signal of our ability to serve European citizens. I now call upon all relevant parties to make the necessary compromises so we can finalise this agreement and start implementing its different aspects as of 1 January 2021. The EU citizens rely on us and we have a collective responsibility to deliver on their expectations.” The budget agreed with Friday’s political declaration would direct 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.