€ 1,279 billion are planned for the 27 Member States of the European Union for the period 2021- 2027, with economical problems on current resources.
The long-term budget proposal for the period 2021- 2027 is presented, proceeding in continuity with the political priorities expressed by the European President Jean- Claude Juncker during his annual speech, considering the complexities deriving from the management of the 27 Member states of the European Union (following the Brexit action)
There is two main challenges: the adaptation of the budget to the new european situation without the United Kingdom, which entails a loss of resources of around € 15 billion and the new priorities requested by the Member States themselves (such as immigration and borders, research and innovation, security and defense, programs for young people and new European instruments), in which the figures could be adjusted as a result of the negotiations between national governments and the European Union.
Overall, for the period 2021- 2027, the budget proposal will be € 1.279 billion, an increase over the allocation established for the 28 Member States of the European Union during the previous seven-years period.
How to finance the increase in resources for new priorities? The reduction in funding will mainly affect two areas: the common agricultural policy (37% of the current budget) and the cohesion policy (35% of the budget)
The solution could be found in the reduction of 60% of the total weight of these two items in the overall budget (7% less in cohesion and 5% less in the agricultural policy) as well as a simplification of the budget structure that will allow to move if necessary, a part of the resources.
Last, the strenghthening of crisis management tools and the creation of a new “European reserve” will also be envisaged, which will allow to tackle unforeseen events and respond to emergency situations in areas such as security and migration.