EU: At 185 billion euros the budget for 2023- How will the distribution of resources be done

The Commission proposed yesterday an annual EU budget of € 185.6 billion for 2023which will be supplemented with about 113.9 billion euros in form grants under NextGenerationEU. The EU budget will continue to mobilize significant investments to stimulate Europe’s strategic autonomy, to continue economic recovery, to ensure sustainability and to create jobs. The Commission will continue to give priority for green and digital investmentwhile addressing the pressing needs arising from recent and ongoing crises.

The Commissioner Johannes HanEU Budget Officer, stated: “We are still proposing emergency funding to support Europe’s recovery and to address the current (yesterday) and future challenges. The budget remains an important tool at the Union’s disposal to provide clear added value to people’s lives. It helps Europe shape a changing world in which we work together for peace, prosperity and our European values. “.

The 2023 Draft Budget, supported by NextGenerationEU, aims to meet the most critical recovery needs of EU Member States and our partners around the world. These financial instruments will continue to rebuild and modernize the European Union and strengthen Europe’s position as a strong global player and a reliable partner.

Additional proposals for financing the effects of the war in Ukraineboth externally and internally, will be submitted later in the year, based on a more accurate needs assessment, in line with the conclusions of the European Council of 31 May 2022.

The budget reflects the EU political priorities, which are vital to ensuring sustainable recovery and strengthening Europe ‘s resilience. To this end, the Commission proposes the allocation (in commitments):

• 103.5 billion euros in grants from NextGenerationEU under the Recovery and Resilience Mechanism (MAA) to support economic recovery and growth following the coronavirus pandemic and to address the challenges posed by the war in Ukraine.
• 53.6 billion euros for the common agricultural policy and EUR 1.1 billion for the European Maritime Fisheries and Aquaculture Fundfor European farmers and fishermen, but also to strengthen the resilience of the agri-food and fisheries sectors and to provide the necessary opportunities for crisis management in view of the expected global food supply shortages.
• 46.1 billion euros for regional development and cohesion to support economic, social and territorial cohesion, as well as the infrastructure to support the green transition and the Union’s priority projects.
• 14.3 billion euros for supporting our partners and our interests in the world, of which € 12 billion under the Neighborhood, Development and International Cooperation Mechanism – Europe in the World (WTO – Europe in the World), € 2.5 billion for the Instrument for Pre-Accession Assistance (IPA III) and € 1.6 billion for Humanitarian Aid (HUMA).
• 13.6 billion euros for research and innovation, of which € 12.3 billion for the Union Horizons Europe’s flagship research program. It is expected to be funded with an additional € 1.8 billion from NextGenerationEU.
• 4.8 billion euros for European strategic investmentsof which € 341 million for InvestEU under key priorities (research and innovation, dual green and digital transition, health and strategic technologies), € 2.9 billion for the Connecting Europe facility for improving cross-border infrastructure and € 1.3 billion for the Digital Europe program to shape the digital future of the Union. InvestEU is expected to be funded with an additional € 2.5 billion by NextGenerationEU.
• 4.8 billion euros for human resources, social cohesion and values, of which € 3.5 billion for Erasmus + to create education and mobility opportunities for people, € 325 million to support artists and creators across Europe and € 212 million to promote justice, rights and values.
• 2.3 billion euros for the environment and climate actionof which € 728 million for the LIFE program to support climate change mitigation and adaptation, and € 1.5 billion for the Fair Transition Fund to ensure that the green transition works for all . The Fair Transition Fund is expected to be funded with an additional € 5.4 billion by NextGenerationEU.
• 2.2 billion euros for expenditure intended for space, mainly for the European Space Program, which will bring together the Union’s actions in this strategic area.
• 2.1 billion euros for border protection, of which EUR 1.1 billion for the Integrated Border Management Fund (IBMF) and EUR 839 million for the European Border and Coast Guard Agency (Frontex).
• 1.6 billion euros for costs related to migrationof which € 1.4 billion to support migrants and asylum seekers in line with our values ​​and priorities.
• 1.2 billion euros for addressing defense and common security challengesof which € 626 million to support capacity building and research under the European Defense Fund (EFF), and € 237 million to support military mobility.
• EUR 927 million for ensuring the smooth functioning of the single market, including € 593 million for the single market program, and almost € 200 million for anti-fraud, taxation and customs work.
• EUR 732 million for the EU4Health program to ensure an integrated health response to human needsas well as EUR 147 million for the Union Civil Protection Mechanism (rescEU), to enable the rapid development of operational assistance in the event of a crisis.
• EUR 689 million for safetyof which 310 million euros for the Internal Security Fund (TEA), which will fight terrorism, radicalization, organized crime and cybercrime.
• EUR 138 million for secure satellite connections in the context of the proposal for a new Union program, the Union’s secure connectivity program.

The financial instruments for the European microcircuit operation will be made available under Horizon Europe and through redistribution from other programs.

The 2023 draft budget is part of the Union’s long-term budget, as approved by the Heads of State and Government at the end of 2020, with subsequent technical adjustments, seeking to translate its priorities into specific annual results. Hence, A significant part of the funds will be allocated to combating climate changein line with the goal of spending 30% of the NextGenerationEU long-term budget and recovery instrument on this policy priority.

Lena Flytzani