Friday

3rd Feb 2023

EU agrees 2020 budget deal

  • Budget committee chair Jan van Overtveldt, and budget control committee chair Monika Hohlmeier look over future budget commissioner Johannes Hahn (Photo: European Parliament)

EU governments and the European Parliament reached a last-minute agreement on a crucial 2020 budget on Monday (18 November) night, boosting spending on fighting climate change.

The EU has committed to spend €168.7bn, of which 21 percent will go to climate. There is also an increase in total payments that amount to €153.6bn, a 3.4 percent increase from 2019.

Read and decide

Join EUobserver today

Become an expert on Europe

Get instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

A deal was especially important as it is the last spending plan of the EU's current seven-year budget.

If there is no agreement by EU countries by the end of next year on the next long-term budget starting from 2021, the budget agreed on Monday would be the default reference in 2021.

The long-term budget talks will be on the agenda for EU affairs ministers' meeting later on Tuesday (19 November), and will be debated by EU leaders on December, but a deal on the first post-Brexit budget is only to come next year.

Belgian MEP Jan Van Overtveldt, chair of the parliament's budget committee, called the 22-hour negotiating marathon "intense" and said the decision was a "step towards future-oriented choices for the EU."

"The EU budget 2020 is a historic change. Investments in innovation, research and infrastructure. Instead of just cohesion funds and agriculture. In favour of climate and environment. This may be an example for the next multi-year budget," he tweeted on Tuesday morning.

There has been significant differences between EU governments and the European parliament, which wanted to increase spending compared to the plans put forward by the commission.

The deadline for them to agree was Monday, and without a deal the commission would have had to submit new proposals.

Under the agreement the research program Horizon 2020 has an 8.8 increase compared to last year, with €13.5bn.

Over €500m more will be spent for climate action on top of commission's original proposal.

"The climate budget is becoming reality. Instead of cut proposed from the council we will get €500m more on climate and €80m more on youth," Green MEP Rasmus Andersen said.

The European satellite navigation system, Galileo gets an €1.2bn boost, a 74.8 percent increase, and connecting Europe's energy infrastructure, and investing in large-scale deployment of renewable sources, gets a 35 percent increase to €1.3bn.

Erasmus+ education program will receive €2.9bn, an increase of 3.6 percent, while programs to help youth unemployment in the most affected regions will be supported by €145m.

The pre-accession funds for Turkey have been significantly reduced with €85m compared to the draft proposed by the commission, given that Turkey has been drifting away from EU values. However, there will be more funding available for the Western Balkans.

On migration management and border protection, countries will spend €2.36bn, with a total of €3,6bn going for security and migration.

German MEP Monika Hohlmeier, lead rapporteur of the file said parliament "succeeded in adding €850m" for the parliament's priorities to the commission's draft budget.

"As any compromise, is not entirely satisfactory. We remain disappointed by the attitude of net payers, who are not willing to put money where the mouth is," she added, thanking the Finnish EU presidency for brokering the deal.

Use 25% of budget on climate change, urge EU states

A discussion document by eight EU countries is piling on the pressure for the EU to do more to fight climate change. But their demands are likely to meet German resistance as leaders gather in Romania to discuss Europe's future.

Hawkish ECB rate-rise 'puts energy transition at risk'

The European Central Bank raised interest rates by another 0.5 percent to a 14-year high, and expects to hike rates by another half percent in March. But what does that mean for the green transition?

Opinion

More money, more problems in EU answer to US green subsidies

Industrial energy-intense sectors, outside Germany and France, will not move to the US. They will go bust, as they cannot compete in a fragmented single market. So to save industry in two member states, we will kill the rest?

Latest News

  1. Greece faces possible court over 'prison-like' EU-funded migration centres
  2. How the centre-right can take on hard-right and win big in 2024
  3. Top EU officials show Ukraine solidarity on risky trip
  4. MEPs launch anonymous drop-box for shady lobbying secrets
  5. Hawkish ECB rate-rise 'puts energy transition at risk'
  6. MEPs push for greater powers for workers' councils
  7. How Pavel won big as new Czech president — and why it matters
  8. French official to take on Islamophobia in EU

Stakeholders' Highlights

  1. Party of the European LeftJOB ALERT - Seeking a Communications Manager (FT) for our Brussels office!
  2. European Parliamentary Forum for Sexual & Reproductive Rights (EPF)Launch of the EPF Contraception Policy Atlas Europe 2023. 8th February. Register now.
  3. Europan Patent OfficeHydrogen patents for a clean energy future: A global trend analysis of innovation along hydrogen value chains
  4. Forum EuropeConnecting the World from the Skies calls for global cooperation in NTN rollout
  5. EFBWWCouncil issues disappointing position ignoring the threats posed by asbestos
  6. Nordic Council of MinistersLarge Nordic youth delegation at COP15 biodiversity summit in Montreal

Stakeholders' Highlights

  1. Nordic Council of MinistersCOP27: Food systems transformation for climate action
  2. Nordic Council of MinistersThe Nordic Region and the African Union urge the COP27 to talk about gender equality
  3. Friedrich Naumann Foundation European DialogueGender x Geopolitics: Shaping an Inclusive Foreign Security Policy for Europe
  4. Obama FoundationThe Obama Foundation Opens Applications for its Leaders Program in Europe
  5. EFBWW – EFBH – FETBBA lot more needs to be done to better protect construction workers from asbestos
  6. European Committee of the RegionsRe-Watch EURegions Week 2022

Join EUobserver

Support quality EU news

Join us