Brussels, 17 November 2016
On 17 November the EU institutions reached an agreement on the 2017 EU budget.
As proposed by the Commission earlier this year, in 2017 the EU will spend more money on making Europe more competitive and more secure. Likewise, more money will go to providing support for the reception and integration of refugees and to addressing the root causes of migration in the countries of origin and transit.
European Commission Vice-President Kristalina Georgieva, in charge of budget and human resources, said: “We have left no stone unturned to secure the money for a budget that will work in the best interest of our people. The 2017 EU budget will thus help buffer against shocks, providing a boost to our economy and helping to deal with issues like the refugee crisis. We continue to focus our budget on results, ensuring that every euro from the EU budget will make a difference.”
The 2017 EU budget is set at €157.9 billion in commitments and €134.5 billion in payment credits. Some key features include:
- Nearly half of the funds – €74.9 billion in commitments – will stimulate growth, employment and competitiveness. For instance, €21.3 billion will go to programmes like Horizon 2020, Erasmus+, COSME and Connecting Europe Facility (CEF) and €2.7 billion to the European Fund for Strategic Investments (EFSI), the vehicle behind the Investment Plan for Europe. Further €53.59 billion will go to fostering convergence among Member States and among regions via the European Structural and Investment Funds (ESIF).
- Support to European farmers amounts to €42.6 billion.
- Nearly €6.0 billion to reinforce the protection of our external borders and to address the migration and refugee crisis. Half of this amount will fund actions within the EU, the other half will be for actions outside the EU to address the root causes of migration. As a part of this, a total of €200 million will be for the new instrument to provide humanitarian assistance within the EU.
EU budget 2017 (in million euro):
| APPROPRIATIONS BY HEADING | Budget 2017 (nominal change in % compared to 2016) | |
| Commitments | Payments | |
| 1. Smart and inclusive growth: | 74,899 (+7,2%) | 56,522 (-4,7%) |
| Competitiveness for growth and jobs | 21,312 (+12,1%) | 19,321 (+11%) |
| Economic, social and territorial cohesion | 53,587 (+5,4%) | 37,201 (-11,2%) |
| 2. Sustainable Growth: natural resources | 58,584 (-6,2%) | 54,914 (-0,1%) |
| Market related expenditure and direct aids | 42,613 (+0,9%) | 42,563 (+0,8%) |
| 3. Security and Citizenship | 4,284 (-0,2%) | 3,787 (+25,3%) |
| 4. Global Europe | 10,162 (+10,9%) | 9,483 (-6,6%) |
| 5. Administration | 9,395 (+5,0%) | 9,394 (+5,0%) |
| Other special Instruments* | 534 (-4,0%) | 390 (+55,7%) |
| Total appropriations | 157,858 (+1,7%) | 134,490 (-1,6%) |
Background
Every year the European Commission tables a draft EU budget. This year, the Commission tabled its initial proposal on 30 June 2016.
On that basis, the European Parliament and the Council each take a position. This year, the Council formally adopted its position on 12 September 2016, while the European Parliament adopted its position in plenary on 26 October 2016.
When there are differences between the positions of the European Parliament and the Council, they engage in a negotiation process known as the ‘conciliation procedure’. This year, 21-day conciliation procedure ran from 28 October until 17 November.
The negotiations are conducted by a specially convened Conciliation Committee, to which the European Parliament and the Council each send 28 representatives. The European Commission – the Vice-President in charge of the budget as well as experts from the Directorate-General for Budget – plays the role of an honest broker.
Next steps
To seal the compromise reached in the budgetary talks, the European Parliament and the Council both have to formally approve the text.
For more information
Draft EU Budget 2017 – Questions and Answers