08 Jun 2022
EC proposes annual EU budget for 2023
On 7 June 2022, the European Commission (EC) proposed an annual EU budget of €185.6 billion for 2023, to be complemented by an estimated €113.9 billion in grants under NextGenerationEU. The budget proposal aims at continuing to mobilise significant investments to boost Europe's strategic autonomy, the ongoing economic recovery, safeguard sustainability and create jobs. The Commission states that it intends to continue to prioritise green and digital investments while addressing pressing needs arising from recent and current crises.
The EC also announced that additional proposals to finance the impact of the war in Ukraine both externally and internally will be tabled later in the year, on the basis of a more precise needs assessment, as per the European Council conclusions of 31 May 2022.
The budget reflects the EU's political priorities, to ensure a sustainable recovery and to strengthen Europe's resilience. To that end, the Commission is proposing to allocate (in commitments):
- €103.5 billion in grants from NextGenerationEU under the Recovery and Resilience Facility (RRF);
- €53.6 billion for the Common Agricultural Policy and €1.1 billion for the European Maritime, Fisheries and Aquaculture Fund;
- €46.1 billion for regional development and cohesion;
- €14.3 billion to support our partners and interests in the world, of which €12 billion under the Neighbourhood, Development and International Cooperation Instrument — Global Europe (NDICI — Global Europe), €2.5 for the Instrument for Pre-Accession Assistance (IPA III), and €1.6 billion for Humanitarian Aid (HUMA).
- €13.6 billion for research and innovation, of which €12.3 billion for Horizon Europe, which would receive an extra €1.8 billion in grants from NextGenerationEU;
- €4.8 billion for European strategic investments, of which €341 million for InvestEU for key priorities (research and innovation, twin green and digital transition, the health sector, and strategic technologies), €2.9 billion for the Connecting Europe Facility to improve cross-border infrastructure, and €1.3 billion for the Digital Europe Programme. InvestEU would receive an extra €2.5 billion in grants from NextGenerationEU;
- €4.8 billion for people, social cohesion, and values, of which €3.5 billion Erasmus+ to create education and mobility opportunities for people, €325 million to support artists and creators around Europe, and €212 million to promote justice, rights, and values;
- €2.3 billion for environment and climate action, of which €728 million for the LIFE programme, and €1.5 billion for the Just Transition Fund. The Just Transition Fund would receive an extra €5.4 billion in grants from NextGenerationEU.
- €2.2 billion for spending dedicated to space;
- €2.1 billion for protecting Europe's borders, of which €1.1 billion for the Integrated Border Management Fund (IBMF), and €839 million (total EU contribution) for the European Border and Coast Guard Agency (Frontex);
- €1.6 billion for migration-related spending, of which €1.4 billion to support migrants and asylum-seekers;
- €1.2 billion to address defence challenges, of which €626 million to support capability development and research under the European Defence Fund (EDF), as well as €237 million to support Military Mobility;
- €927 million to ensure the smooth functioning of the Single Market, including €593 million for the Single Market Programme, and close to €200 million for work on anti-fraud, taxation, and customs;
- €732 million for EU4Health to ensure a comprehensive health response to people's needs, as well as €147 million to the Union Civil Protection Mechanism (rescEU);
- €689 million for security, of which €310 million for the Internal Security Fund (ISF);
- €138 million for secure satellite connections under the proposal for a new Union programme, the Union Secure Connectivity Programme;
- Budgetary means for the European Chips Act will be made available under Horizon Europe and through redeployment from other programmes.
The draft budget for 2023 is part of the Union's long-term budget as adopted by the Heads of State and Governments at the end of 2020, including subsequent technical adjustments. The EC stresses that in line with the EU's priorities, a significant part of the funds will be dedicated to combatting climate change, in line with the target to spend 30% of the long-term budget and the NextGenerationEU recovery instrument on this policy priority.
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