How will the money be spent by the European Union?

How will the money be spent by the European Union?

There is a gap of almost 200,000 million between the European Commission's project for 2021-2027 and the one that Parliament defends

  The multi-year budget for the period 2021-2027 will be the first of the European Union of the 27. The departure of the United Kingdom from the EU poses a serious budgetary problem due to the loss of the British contribution, which the European Commission (EC) has tried to solve by means of adjustments in the cohesion funds and those destined to agriculture, and proposing new ways of income. However, the project has not found the backing of the European Parliament due to these cuts. Moreover, most MEPs have already warned that they will not approve the Budget if there are no more own resources for the EU. And although, given the timing of the debates, it will be the Parliament that results from the next May elections that finally votes the Accounts, the positions seem clear.

  The Commission proposes a global expenditure for the period 2021-2027 of 1,13 billion euros (at constant 2018 prices), while the European Parliament claims that it will reach 1,32 billion euros, a figure that would avoid the adjustments while increasing the research, aid to refugees and defense, which is also raised by the Commission.

"The agricultural policy is still basic for food security, price control and development," explains Eider Gardiazabal, Socialist MEP. While the Commission proposes to cut cohesion funds by 45.5% and adjust 15% of the money allocated to agriculture and maritime policy, MEPs want them to remain as they have been until now.

"There are new priorities, such as the new policy of sheltering refugees, common defense or investigation, which is why Parliament defends that we must have more resources that come directly to the European Union, and in this we coincide socialist, popular, liberal and greens, "says Gardiazabal.

The gap between budget projects of the European Commission and Parliament is almost 200,000 million euros for the seven years: MEPs defend 30,000 million more for regional development and the cohesion fund, which would remain at the levels current; 17,000 million more for the European Social Fund -including 5,900 million for a Child Guarantee-; 68,000 million more for natural resources and the environment; and 50,000 million more for the single market, innovation and digital economy. In the rest of the games, the differences are minor.

The budget is one of the main tools of the policy. European money has made it possible to raise the level of development of the most backward regions - and we know a lot about this in Spain - but also to increase innovation, protect the environment or exchange students through the Erasmus program.

Of every 100 euros of the community budget, 34 will be allocated to 'Cohesion and Values', which includes the funds for regional development, cohesion, social fund, Erasmus and the European Solidarity Corps. A European Globalization Adjustment Fund would also be created to help displaced and self-employed workers whose activity has ceased as a result of large unexpected restructurings.

30% of the total will go to 'Natural Resources and the Environment', which includes money for agriculture and fishing, as well as actions for the environment and climate. In order to implement the Paris Agreement and the commitment to the Sustainable Development Goals of the United Nations, it is intended that all climate change impacts be integrated into all EU programs and that at least 25% of the Spending contributes to meeting environmental objectives. All farmers who receive land payments will have to meet a series of requirements. The European Parliament also wants to incorporate a fund for the fair energy transition. At a crossroads between innovation, agriculture, environment and technology,

Houses in 3D
In addition, around 15 euros of each hundred will go to improve the single market, innovation and the digital economy. Thanks to EU funding, new planets have been discovered, there have been great advances in the treatment of cancer, a 100 times more powerful battery has been developed, and buses with hydrogen fuel cells are being tested in our cities. Now, one of the projects is printing houses in 3D. Likewise, through the InvestEU program, they plan to mobilize more than 650,000 million euros of additional investments throughout Europe through public and private financing.

One of the items that grows the most, although its total volume represents less than 3%, is dedicated to migration and border management, for which it is suggested - and here the Commission and Parliament agree - a global figure of 34,900 million euros compared to to 13,000 million for the period 2014-2020. This will create an Integrated Border Management Fund to strengthen the protection of common external borders with a European Border and Coast Guard Agency. The Commission promises a permanent corps of 10,000 border guards compared to the current 1,500.

The EC wants countries to pay for non-recycled plastic
80% of the community budget is financed with the contributions of each State, which at the time of debate in the European Council distorts the debate because each country looks for its own rather than everyone's. The exit of the United Kingdom leaves a hole of more than 12,000 million euros annually, to which are added the more than 10,000 million euros that are needed for new initiatives, according to the framework designed by the Commission. The proposal of the Community Executive calls for raising the budget to 1.11% of the total gross national income of the Twenty-seven, compared to the 1.03% it represents in the period 2014-2020. The Parliament raises the necessary contribution to 1.30% and demands that there be more resources going directly to the European Union.

Over the past decades, the sources of EU income have not changed and consist of customs duties collected at the Union's external borders that go directly to their budget (Member States retain 20% for the costs of collection), the rate of 0.3% on VAT of all States and the own resource based on gross national income (the same percentage applies to all, although some countries enjoy a reduction). The Community Executive proposes to introduce a basket of new own resources formed by a rate of 3% on the consolidated tax base of corporation tax, a national contribution based on the amount of non-recycled plastic waste and 20% of the income of auctions of emission rights. Further, wants to reduce from 20% to 10% the percentage that States remain for collection costs of customs duties, progressively eliminate the discounts that some countries have and allow a higher percentage of the gross national income of the 27 countries to be used as own resources. The new resources would allow to obtain 22,000 million euros more per year, 12% of the total income.