PURPOSE: definitive adoption of the European Union’s general budget for 2017.
LEGISLATIVE ACT: Definitive adoption (EU, Euratom) 2017/292 of the European Union’s general budget for the financial year 2017.
CONTENT: the European Parliament voted to adopt the 2017 EU budget, in accordance with the joint text adopted in plenary on 1 December 2016.
The 2017 budget is the 4th annual budget under the multiannual financial framework (MFF) for the EU for 2014-2020.
With EUR 157.9 billion and about 1% of the EU's gross national income (GNI), growth, employment and competitiveness will be the main focus of the budgetary priorities for 2017. Other funds will also be allocated to ensure the EU's second highest priority in 2017, namely to respond effectively to the challenges posed by the migratory crisis.
Policy areas of the 2017 budget: the EU budget for 2017 amounts to EUR 157.9 billion in commitment appropriations and EUR 134.5 billion in payment appropriations. On a political level, the main budgetary axes for the financial year 2017 may be summarised as follows:
- nearly half of the funds (EUR 74.9 billion in commitment appropriations) are intended to stimulate growth, employment and competitiveness. For example, EUR 21.3 billion will be allocated to programmes such as Horizon 2020, Erasmus +, COSME and the European Interconnection Facility (EIF) and EUR 2.7 billion to the European Strategic Investment Fund (EFSI), a driving force of the investment plan for Europe. In addition, EUR 53.59 billion will be used to promote convergence between Member States and regions through the European Structural and Investment Funds (ESI Funds);
- nearly EUR 6 billion is intended to strengthen the protection of external borders and mitigate the migration and refugee crisis. Half of this amount will be used to finance actions within the EU and the other half, actions outside the EU to combat the root causes of migration.
Budget year 2017 in figures:
- commitment appropriations: EUR 157.858 billion, up by 1.7% compared to 2016;
- payment appropriations: EUR 134.49 billion, down 1.6% from the 2016 budget.
Budget 2017 - amounts by headings:
- Heading 1: Smart and inclusive growth: this heading is allocated EUR 74.9 billion in commitments and EUR 56.52 in payments. It comprises two specific sub-headings:
- 1a: Competitiveness for growth and jobs: this sub-heading sees an increase of 12.1% compared to 2016 commitments. The commitments are set at EUR 21.3 billion. Specific programmes under this heading include: (i) the "Horizon 2020" framework and research programme; (ii) Erasmus + and (iii) COSME, Competitiveness of Enterprises and Small and Medium-sized Enterprises (SMEs);
- 1b: Economic, social and territorial cohesion: commitments increased by 5.4% compared to 2016: commitments under this heading have been set at EUR 53.6 billion.
- Heading 2: Sustainable Growth: natural resources: this heading is characterised by commitments of EUR 58.6 billion, of which EUR 46.6 billion are available for market expenditure and direct aids to farmers. The payments were set at EUR 42.6 billion. Overall commitments and payments decreased by less than 1% compared to 2016.
- Heading 3: Security and citizens: this heading saw the amount of its commitments decrease slightly following a significant increase in 2016. Commitments are set at EUR 4.29 billion and payments are raised by 25% to EUR 3.8 billion.
- Heading 4: Global Europe: this heading amounted to EUR 10.16 billion in commitments and includes programmes such as Pre-Accession Instrument, the European Neighbourhood Instrument, the Instrument for Development Cooperation, the European Instrument for Democracy and Human Rights and the Stability Instrument. The heading showed an increase of 11% compared to 2016 in terms of commitments. Payments amounted to EUR 9.5 billion, a decrease of 6.6%.
- Heading 5 and 6: Administration: the level of commitments and payment is set at EUR 9.4 billion (+ 5% for commitments and payments).