EU budget 2024: addressing next year’s challenges through mid-term revision

MEPs boost the 2024 EU budget to tackle the fallout from Russia’s war against Ukraine, support SMEs, young people and research, and bolster the EU’s strategic autonomy.

MEPs say that the new geopolitical and economic context, “coupled with the worsening climate and biodiversity crisis”, has given rise to “new policy needs”. They recall the limits of the EU’s current financial setup and align their position on the 2024 budget with their stance on the proposed mid-term revision of the EU’s long-term budget (MFF, multiannual financial framework), which Parliament expects to inject up to €75.8 billion into the EU budget over the period 2024-2027.

Drawing from this planned top-up, MEPs bolster initiatives to improve the EU’s strategic autonomy in 2024, but also humanitarian aid, migration and external assistance. They say that the “revised MFF regulation must provide the framework for the 2024 budget”. Member states have yet to agree on a common position on the revision.

Boosting key EU programmes, restoring funding for key programmes cut by EU governments

Parliament also reversed the cuts made by the Council in its negotiating stance (€772 million) to the level of the original draft budget proposed by the Commission. They have also increased funding for programmes and policies, which they see as vital for addressing the consequences of the war in Ukraine and high energy prices. This will further aid post-pandemic recovery and fortify the green transition, and support young people with a boost for Erasmus+, to account for higher inflation and higher living costs and make the programme accessible to all.

An accompanying resolution, adopted with 424 against 101 votes and 102 abstentions, summarises Parliament’s position.

A press conference on the outcome of the vote with Roberta Metsola, President of the European Parliament and the co-rapporteurs Siegfried Mureșan (EPP, RO) and Nils Ušakovs (S&D, LV) will take place on Wednesday, 18 October at 13:30 in the Parliament’s press room in Strasbourg. Webstream link

Quotes

Siegfried Mureșan (EPP, RO), general rapporteur for the EU budget 2024 (for section III –

Commission): “Today, Parliament adopted a strong position on the 2024 EU budget, with broad support across pro-European groups. Our united front prioritises boosting research, innovation, and Erasmus+ scholarships, increasing funds for the Eastern Neighbourhood and responses to Russian aggression in Ukraine, and bolstering traditional areas like agriculture, especially for young farmers. Our position is based on our stance on the revision of the EU’s long-term budget, and we are now ready to negotiate a budget for 2024 built on that revision.”

Nils Ušakovs (S&D, LV), rapporteur for the other sections: “Parliament underscores the necessity for all EU institutions to have sufficient resources to meet their legal and contractual commitments, and fulfil their mandates. Recognising the restraint that has been shown for the 2024 budget, MEPs will make sure the institutions will be able to function effectively.”

Next steps

The plenary vote kicks off three weeks of “conciliation” talks with the Council, with the aim of reaching a deal between the two institutions in time for next year’s budget, to be voted on by Parliament and signed by its President before the end of the year.

Background

More than 90% of the EU budget funds activities on the ground in EU countries and beyond. It goes to citizens, regions, cities, farmers, researchers, students, NGOs and businesses.

The EU budget is unique. Unlike national budgets, which are used in large part to provide public services and funding social security systems, the EU budget is primarily an investment budget.

What are commitments and payments?

Commitments are the total volume of contractual obligations for future payments that can be made in a given year. Commitments must then be honoured with payments, either in the same year or, particularly in the case of multi-annual projects, over the following years.

Payments are the actual money paid in a given year from the EU budget to cover commitments of current and previous years.