On May 3rd 2018, the Commission proposed a long-term budget of €1,135 billion in commitments over the period from 2021 to 2027, equivalent to 1.11% of the EU27’s gross national income (GNI). The new budget will have to reflect the reality of the United Kingdom leaving the EU, which will put an additional strain on the remaining member states. However, this also provides an opportunity to address the proposal of eliminating all rebates and reducing from 20% to 10% the amount Member States keep when collecting customs revenues for the EU budget.
The Commission has critically examined where savings can be made and efficiency improved, proposing that funding for the Common Agricultural Policy and Cohesion Policy bemoderately reduced. A modernised Cohesion Policy will have an increasingly important role to play in supporting structural reform. The relative per capita gross domestic product will remain the predominant criterion for allocating funds – while other factors such as the long-term integration of migrants, (youth) unemployment and climate change will also be taken into account. A major innovation in the proposed budget is the strengthened link between EU funding and the rule of law, with the Commission proposing a new mechanism, which would allow the Union to suspend, reduce or restrict access to EU funding in a manner proportionate to the rule of law deficiencies.
More on the budget proposal available at: