Monday

26th Jun 2017

Breakthrough at EU budget summit

  • EU leaders spent 18 hours just to agree on the overall budget figure (Photo: European Council)

After eighteen hours of talks EU leaders early Friday morning (8 February) agreed to a total EU budget of €960 billion for the next seven years, which is smaller than the current €1 trillion budget.

The farm budget is to be cut from the current €421bn to €373bn. Cohesion funds, the second largest part of the budget, is to be cut from the current €355bn to €325bn.

Dear EUobserver reader

Subscribe now for unrestricted access to EUobserver.

Sign up for 30 days' free trial, no obligation. Full subscription only 15 € / month or 150 € / year.

  1. Unlimited access on desktop and mobile
  2. All premium articles, analysis, commentary and investigations
  3. EUobserver archives

EUobserver is the only independent news media covering EU affairs in Brussels and all 28 member states.

♡ We value your support.

If you already have an account click here to login.

If the overall figures are finally agreed, it would be the first time the bloc has cut its budget in its 56-year history.

The only part of the budget to be secured substantially more money is 'competitiveness for growth and jobs' part, up from the current €91bn to €126bn. This is less than proposed originally by the Commission and also less than the €140bn proposed by Van Rompuy in November, when EU leaders failed to reach agreement on the new budget. It remains, however, the biggest hike on any part of the budget.

One of the key initiatives is the European Commission's flagship project, 'Connecting Europe', a plan to invest over €50bn in European transport, energy and internet infrastructures is to take a big hit in the draft budget, with only €29bn made available for it.

Of this €23bn is allocated for transport, €5bn for energy and €1bn for internet infrastructures. For other flag projects, Gallileo, ITER and GMES total €13bn is allocated.

In the budget tabled on Friday morning administration costs are also accepted to go up, from currently €57bn to €62bn in the future budget, which covers a period where EU will take on board minimum one new country, Croatia.

The EU institutions will have to reduce staff by five percent over the next four years. The remaining staff will have to work more for the same amount of money. Also, salaries of EU officials are set to be frozen for the next two years: "As part of the reform of the staff regulation, the adjustment of salaries and pensions will be suspended for two years."

The document tabled by EU president Herman van Rompuy keeps the rebates for Germany, the UK, the Netherlands and Sweden. Denmark is added to the list of countries getting an annual rebate of €130 million, while there is no mention of the Austrian annual €179 million rebate enjoyed over the last seven years.

The talks among all EU leaders resumed in the early morning hours of Friday and are still ongoing.

EU leaders gather for budget horse-trading

EU leaders are gathering in Brussels for more horse-trading on the Union's budget, with any agreement having to satisfy penny-counting member states without alienating MEPs.

MEPs attack 'carpet seller' budget deal

The EU parliament's biggest faction, the centre-right EPP, has denounced the proposed €960 billion EU budget in a clear sign MEPs may reject the deal struck by leaders.

EU approves rescue of Italian banks

The European Commission gave the green light to a €17-billion plan by the Italian government to save Banca Popolare di Vicenza and Veneto Banca.

News in Brief

  1. Seasoned finance minister takes over Dutch coalition talks
  2. British PM closes government deal with Northern Irish party
  3. Merkel on collision course with US at G20 summit
  4. Schulz outlines German election strategy, hits out at Merkel
  5. Berlusconi's party sees comeback in Italian local votes
  6. Low turnout in Albanian election set to mandate EU future
  7. Merkel and Macron hold symbolic joint press conference
  8. Juncker has 'no' clear idea of kind of Brexit UK wants

Stakeholders' Highlights

  1. Malta EU 2017Conservation of Atlantic Tunas: International Measures Become EU Law
  2. European Healthy Lifestyle AllianceCan Statin Therapy Interfere With a Physically Active Lifestyle?
  3. EPSUOn Public Services Day, Stop Austerity! Workers Need a Pay Rise!
  4. EGBAOnline Gambling: The EU Court Rejects Closed Licensing Regimes In Member States
  5. World VisionFaces of Today, Leaders of Tomorrow: Join the Debate on Violence Against Girls - 29 June
  6. ECR GroupThe EU Must Better Protect Industry from Unfair Competition
  7. Malta EU 2017Better Protection for Workers From Cancer-Causing Substances
  8. EPSUAfter 9 Years of Austerity Europe's Public Sector Workers Deserve a Pay Rise!
  9. Dialogue PlatformGlobalised Religions and the Dialogue Imperative. Join the Debate!
  10. UNICEFEU Trust Fund Contribution to UNICEF's Syria Crisis Response Reaches Nearly €200 Million
  11. EUSEW17Bringing Buildings Into the Circular Economy. Discuss at EU Sustainable Energy Week
  12. European Healthy Lifestyle AllianceCan an Ideal Body Weight Lead to Premature Death?