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Economic and Budgetary Outlook for the European Union 2019

30-01-2019

This EPRS study, the third in an annual series, provides an overview of the economic and budgetary situation in the EU and beyond. It summarises the main economic indicators in the Union and euro area, and their two-year trends. The figures show that growth was moderate in 2018, at 2.1 %, although this is expected to deteriorate slightly in the coming months, given the poorer global outlook than a year ago. That said, unemployment is at a post-crisis low, and is expected to improve further, given ...

This EPRS study, the third in an annual series, provides an overview of the economic and budgetary situation in the EU and beyond. It summarises the main economic indicators in the Union and euro area, and their two-year trends. The figures show that growth was moderate in 2018, at 2.1 %, although this is expected to deteriorate slightly in the coming months, given the poorer global outlook than a year ago. That said, unemployment is at a post-crisis low, and is expected to improve further, given positive labour market conditions. The study explains the annual EU budget, providing an overview of its headings for 2019, with the total amounting to €165.8 billion (or around 1 % of EU gross national income). The budget focuses on priorities that include stimulating investment, growth and research, the creation of new jobs – especially for young people – and addressing migration and security challenges. The wider budgetary framework – the multiannual financial framework (MFF) – is also analysed in the study, with key decisions on spending for the 2021-2027 period due to be taken during 2019. In this year's edition, the special 'economic focus' offers a bird's eye view of SMEs and SME policy in Europe, and of various recent EU-level initiatives in this field. The EU budget devotes particular attention to SMEs, given their central role in the European economy and in job creation. The EU needs to continue devoting efforts to improving European SMEs' access to finance, since despite recent improvements, they are still too heavily reliant on debt financing which puts them at risk in a downturn.

Cohesion funds, values and economic and monetary union in the 2021-2027 MFF: European Parliament position on Heading 2 – Cohesion and values

21-01-2019

Heading 2 – Cohesion and values – is the biggest in terms of budget in the multiannual financial framework (MFF) proposed by the European Commission for the 2021 to 2027 period. It is also the most diversified heading in terms of the types of programme and fund included. It encompasses expenditure on cohesion, one of the EU's long-standing policies, on an entirely new budgetary instrument supporting economic and monetary union, and on other increasingly important goals, including youth employment ...

Heading 2 – Cohesion and values – is the biggest in terms of budget in the multiannual financial framework (MFF) proposed by the European Commission for the 2021 to 2027 period. It is also the most diversified heading in terms of the types of programme and fund included. It encompasses expenditure on cohesion, one of the EU's long-standing policies, on an entirely new budgetary instrument supporting economic and monetary union, and on other increasingly important goals, including youth employment, the creative sector, values, equality and the rule of law. Under this heading the Commission is proposing to almost halve the Cohesion Fund and double the Erasmus+ programme. Moreover, some of the programmes included fall under shared management between the Commission and EU Member States, while some are managed directly by the Commission. This briefing presents Heading 2 in detail, on the basis of previous EPRS publications on the 2021-2027 MFF proposal. It aims to provide some clarity on its structure and allocation in comparison with the current MFF, based on the Commission's proposal for the 2021-2027 MFF and the European Parliament's negotiating position adopted on 14 November 2018. The analysis is structured around three issues: the introduction to the EU budget of a new budgetary instrument for economic and monetary union, a change in the allocation for cohesion policy, and the merging of programmes supporting people, social cohesion and values.

2021-2027 multiannual financial framework and new own resources: Analysis of the Commission's proposal

26-07-2018

The process of negotiating a new seven-year financial plan for the EU has now begun formally with the Commission's publication of proposals for a 2021-2027 Multiannual Financial Framework (MFF), and for a new system of own resources providing the revenue to pay for it. This analysis presents the proposed new MFF and own resources and compares them to the status quo, as well as to the European Parliament's priorities as expressed in plenary resolutions adopted in spring 2018.

The process of negotiating a new seven-year financial plan for the EU has now begun formally with the Commission's publication of proposals for a 2021-2027 Multiannual Financial Framework (MFF), and for a new system of own resources providing the revenue to pay for it. This analysis presents the proposed new MFF and own resources and compares them to the status quo, as well as to the European Parliament's priorities as expressed in plenary resolutions adopted in spring 2018.

Post-2020 MFF and own resources: Ahead of the Commission's proposal

27-04-2018

On 2 May, the Commission is expected to publish proposals for a new multiannual financial framework (MFF) for the European Union for the years after 2020, as well as for a new system of own resources (OR) to provide the EU with the means to finance its annual budgets. The following day the proposals are to be presented to the Parliament's Committee on Budgets (BUDG).The proposals are being published as a package, and will be followed by a series of further legislative proposals for individual spending ...

On 2 May, the Commission is expected to publish proposals for a new multiannual financial framework (MFF) for the European Union for the years after 2020, as well as for a new system of own resources (OR) to provide the EU with the means to finance its annual budgets. The following day the proposals are to be presented to the Parliament's Committee on Budgets (BUDG).The proposals are being published as a package, and will be followed by a series of further legislative proposals for individual spending programmes to appear later in May and in June. The next MFF and OR system will set the EU's priorities and determine much of its scope for action for a period of at least five years. The proposals are an opportunity for the Commission to respond to a set of longstanding issues concerning how the EU finances its priorities, and to new issues arising from a political landscape that has changed profoundly since 2013, when the EU last negotiated its multiannual budget plan. Chief among these are the twin pressures affecting both the revenue and spending sides of the budget: the loss of a major net contributor country in the departure from the EU of the United Kingdom; and growing pressure to respond to new challenges mainly linked to the refugee and migration crisis that erupted after the current MFF was put in place, as well as ongoing issues resulting from the financial and sovereign debt crises. The Commission's proposals for a new MFF and OR will also respond to the question of how big the EU budget should be. Currently subject to a political cap of 1 % of the EU's GNI, the EU budget is modest in comparison with the government budgets of the EU's Member States. Nevertheless, negotiations over whether to increase this cap will be politically fraught in a context where some Member States are under pressure to reduce national budget deficits. Other issues at stake in the negotiations are the flexibility, conditionalities, structure and duration of the next MFF, and the sensitive question of whether to increase the EU's financial autonomy by endowing it with new and significant own resources.

Futuro de Europa: Contorno del debate actual

12-04-2018

Tras la decisión del Reino Unido de abandonar la Unión como consecuencia del referéndum celebrado en junio de 2016, la Unión inició una profunda reflexión sobre el futuro de Europa, que sigue teniendo lugar en diversos foros e instituciones. El debate ha cobrado un nuevo impulso: la agilización de las negociaciones con el Reino Unido sobre su salida de la Unión, los resultados electorales en algunos Estados miembros y las próximas elecciones europeas que se celebrarán en mayo de 2019 han repercutido ...

Tras la decisión del Reino Unido de abandonar la Unión como consecuencia del referéndum celebrado en junio de 2016, la Unión inició una profunda reflexión sobre el futuro de Europa, que sigue teniendo lugar en diversos foros e instituciones. El debate ha cobrado un nuevo impulso: la agilización de las negociaciones con el Reino Unido sobre su salida de la Unión, los resultados electorales en algunos Estados miembros y las próximas elecciones europeas que se celebrarán en mayo de 2019 han repercutido sobre la profundidad del debate y la visibilidad de las posturas de los diversos actores implicados. En este contexto, el Parlamento Europeo viene organizando desde principios de 2018 debates plenarios sobre el futuro de Europa con jefes de Estado o de Gobierno: el primer ministro irlandés, Leo Varadkar, en enero, el primer ministro croata, Andrej Plenković, en febrero, y el primer ministro portugués, António Costa, en marzo. El presidente francés, Emmanuel Macron, pronunciará un discurso durante la sesión plenaria de abril de 2018. El primer ministro belga, Charles Michel, y el primer ministro de Luxemburgo, Xavier Bettel, han confirmado su participación a principios de mayo en Bruselas y a finales del mes en Estrasburgo, respectivamente. El presente briefing proporciona una visión general de la situación actual del debate en una serie de ámbitos políticos clave, como el futuro de la Unión Económica y Monetaria, la dimensión social de la Unión, o los avances recientes de la política migratoria de la Unión, así como la seguridad y la defensa. Del mismo modo, el briefing incluye un análisis preliminar sobre el futuro marco financiero plurianual posterior a 2020, y debates sobre asuntos institucionales más amplios. Ver también la publicación complementaria del Servicio de Estudios del Parlamento Europeo, From Rome to Sibiu – The European Council and the Future of Europe debate (De Roma a Sibiu – El Consejo Europeo y el Futuro de Europa a debate), PE 615.667.

Performance budgeting: A means to improve EU spending

16-03-2018

In 2015, the European Commission launched an initiative entitled 'The EU budget focused on results'. It is aimed at changing spending culture and making results a horizontal priority for the EU budget. The initiative is based on a popular contemporary budgeting method known as 'performance budgeting'. This paper presents the method and its application to the EU budget. It explains why, although not easy to implement, performance budgeting is seen as an attractive way to increase value for money and ...

In 2015, the European Commission launched an initiative entitled 'The EU budget focused on results'. It is aimed at changing spending culture and making results a horizontal priority for the EU budget. The initiative is based on a popular contemporary budgeting method known as 'performance budgeting'. This paper presents the method and its application to the EU budget. It explains why, although not easy to implement, performance budgeting is seen as an attractive way to increase value for money and enhance the transparency and democratic accountability of public finances. The paper also analyses how the performance budgeting approach has evolved within the EU budgetary system and what challenges and obstacles to its implementation remain. The commitment of the European Commission to the principles of performance budgeting, as well as the broad support for the idea expressed by the European Parliament and the Council, give grounds to believe that these efforts will continue in the post-2020 Multiannual Financial Framework.

Marco Financiero Plurianual posterior a 2020

06-03-2018

Está previsto que la Comisión Europea adopte en mayo de 2018 una propuesta sobre un nuevo marco financiero plurianual (MFP) para el periodo posterior a 2020, junto con propuestas relativas a la reforma del sistema de «recursos propios». La Comisión de Presupuestos (BUDG) del Parlamento Europeo ha aprobado un informe de propia iniciativa sobre su posición relativa al futuro MFP, junto con uno sobre la reforma de los «recursos propios». Previstos para debate en el periodo parcial de sesiones de marzo ...

Está previsto que la Comisión Europea adopte en mayo de 2018 una propuesta sobre un nuevo marco financiero plurianual (MFP) para el periodo posterior a 2020, junto con propuestas relativas a la reforma del sistema de «recursos propios». La Comisión de Presupuestos (BUDG) del Parlamento Europeo ha aprobado un informe de propia iniciativa sobre su posición relativa al futuro MFP, junto con uno sobre la reforma de los «recursos propios». Previstos para debate en el periodo parcial de sesiones de marzo, los dos textos expondrán la perspectiva del Parlamento sobre los ingresos y los gastos del presupuesto de la Unión, que, en su opinión, deben tratarse como capítulos de un mismo paquete en las próximas negociaciones.

European Maritime and Fisheries Fund

15-06-2017

The €6 396.6 million European Maritime and Fisheries Fund (EMFF) is the smallest of the European Structural and Investment Funds for the 2014-2020 period, but it is the major financial tool supporting the EU common fisheries policy (CFP). Slightly less than half of the Fund is dedicated to promoting sustainable fisheries and to fostering sustainable aquaculture. Another significant share contributes to proper implementation of the CFP, particularly for data collection and science-based needs, and ...

The €6 396.6 million European Maritime and Fisheries Fund (EMFF) is the smallest of the European Structural and Investment Funds for the 2014-2020 period, but it is the major financial tool supporting the EU common fisheries policy (CFP). Slightly less than half of the Fund is dedicated to promoting sustainable fisheries and to fostering sustainable aquaculture. Another significant share contributes to proper implementation of the CFP, particularly for data collection and science-based needs, and control and enforcement of rules. A small part of the EMFF is also aimed at supporting an integrated maritime policy (IMP) for the EU.

Economic and budgetary outlook for the European Union 2017

27-01-2017

This study presents the economic and budgetary outlook for the European Union (EU) in 2017 and beyond. Economic estimates point to moderate growth and creation of new employment against a backdrop of persistent external and internal challenges that may hinder recovery. An investment gap persist in almost all EU Member States and a number of EU measures contribute to addressing it. While fiscal policies remain mainly within EU Member States' remit, they are increasingly coordinated at EU level through ...

This study presents the economic and budgetary outlook for the European Union (EU) in 2017 and beyond. Economic estimates point to moderate growth and creation of new employment against a backdrop of persistent external and internal challenges that may hinder recovery. An investment gap persist in almost all EU Member States and a number of EU measures contribute to addressing it. While fiscal policies remain mainly within EU Member States' remit, they are increasingly coordinated at EU level through rules and processes such as the European Semester. However, a central tool of fiscal stabilisation is missing, as the EU budget was not designed to play this role. This is due to the size of the EU budget (only some 1 % of the area's gross national income) and its limited flexibility in the context of multiannual financial planning. While the structure of the 2017 EU budget is largely determined by the 2014-2020 Multiannual Financial Framework (MFF), EU institutions have used the flexibility provisions of the MFF to strengthen resources in areas considered of key concern – the economic and migration crises, and emerging security issues. The need to resort to such provisions appears to be a constant feature of the current MFF. The debate on the future of the EU budget is expected to gain momentum in 2017 in the run-up to the European Commission proposal for a post-2020 MFF. In a rapidly evolving world, the design of the EU budget has to ensure the right balance between predictability of investments and capacity to respond to new challenges and priorities.

European Regional Development Fund

07-10-2016

The European Regional Development Fund (ERDF) is one of the European Structural and Investment (ESI) Funds. It has the largest budget – 43.2 % of the total allocation for the ESI Funds – and wide-ranging investment priorities. Its action focuses on the development and structural adjustment of regions whose development is lagging behind. About 95 % of ERDF resources is spent on investment for growth and jobs. The remaining 5 % supports European territorial cooperation programmes (formerly known as ...

The European Regional Development Fund (ERDF) is one of the European Structural and Investment (ESI) Funds. It has the largest budget – 43.2 % of the total allocation for the ESI Funds – and wide-ranging investment priorities. Its action focuses on the development and structural adjustment of regions whose development is lagging behind. About 95 % of ERDF resources is spent on investment for growth and jobs. The remaining 5 % supports European territorial cooperation programmes (formerly known as Interreg).

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