Finance: EU budget 2024: Green and digital spending first

finance
EU budget 2024: green and digital spending first

European Union flags fly in the wind in front of the European Commission’s Berlaymont building in Brussels. photo

© Arne Immanuel Bänsch/dpa

The EU wants to advance the fight against climate change and digital change – that costs a lot of money. However, money is already tight because of Corona and the Russian attack on Ukraine.

According to a first draft by the EU Commission, the European Community budget for the coming year should amount to almost 190 billion euros. In addition, there are likely to be around 113 billion euros in grants from the Corona development fund, as the commission announced on Wednesday. “The EU budget continues to give Europe the means to meet current and future challenges,” said Budget Commissioner Johannes Hahn. Green and digital spending will therefore continue to be a priority. However, like national budgets, the EU budget faces increasing costs, while the need for funding is not decreasing.

The 2024 EU budget of €189.3 billion – slightly higher than the Commission’s 2023 proposal (€185.6 billion) – is tailored to support the EU’s green and digital transition, Hahn said. It remains one of the most effective tools. According to the Commission, priority is given to promoting the recovery after the corona pandemic, “making Europe sustainable, preserving and creating new jobs”. The EU budget thus supports the EU’s climate goals and promotes the digital transformation. By 2030, the EU wants to emit at least 55 percent fewer greenhouse gases than in 1990 and become climate-neutral by 2050.

Draft budget is now being discussed

In addition to the staff of the institutions, the EU budget primarily finances subsidies for farmers (53.8 billion planned) and structurally weak regions in the EU (47.9 billion planned). In addition, there should be, for example, billions for international cooperation and humanitarian aid in third countries, research, for various programs for people in Europe such as the Erasmus offers and for the expansion of infrastructure.

The EU states and the European Parliament will now discuss the draft budget. The basis for this is the multi-annual financial framework for the years 2021 to 2027.

Various crises such as the pandemic or the Russian war of aggression against Ukraine have “exhausted this long-term plan to the maximum”, according to the commission. It is currently being checked. On June 20, the Commission intends to present the results of the revision. Possible effects on the 2024 budget could then be considered as part of the budgetary process, it said. Further support for Ukraine will also be discussed as part of the review of the long-term budget, it said.

dpa

source site-3