MEPs Adopt Position Calling for 10% Increase in Long-Term EU Budget

# MEPs Adopt Position on EU Long-Term Budget Members of the European Parliament's Committee on Budgets adopted their position on the long-term EU budget on Wednesday, according to Euronews. The adopted position calls for a 10% increase in the long-term EU budget. It also calls for the repayment of Next Generation EU to be kept outside the EU budget.

The proposed 10% increase would be evenly distributed across the budget’s three main political priorities: national plans, competitiveness funds and Horizon as well as Global Europe. The Competitiveness Fund will support actions to strengthen Europe’s position in the global economy. Horizon funds will focus on innovation, education and research.

Global Europe will cover EU action outside the bloc, including security, funding for projects in third countries, and humanitarian aid. Next Generation EU is the joint debt approved in 2020 to address the economic impact of COVID-19. The European Parliament proposed placing the repayment of Next Generation EU debt outside the budget ceilings.

The European Commission has proposed keeping the repayments of Next Generation EU within the budget.

The creation of national plans to distribute the EU budget is the main novelty in the European Commission’s proposal.

The European Parliament does not support the creation of national plans in the European Commission’s proposal. MEPs warned that the Commission’s one plan per member state approach could undermine EU policies, reduce transparency, and create competition between beneficiaries. The warning was published in a press release after the vote.

The European Parliament’s proposal does not introduce a fundamental restructuring of the budget’s architecture. The EU’s long-term budget must be approved by both the European Parliament and the 27 member states.