European Parliament approves multiannual budget

The European Parliament has approved the European Unions budget for the next seven years.

Leyla Cheamil, 17.12.2020, 13:50

The European Parliament approved
with overwhelming majority the EU budget for the 2021-2027 period. Parliament
also approved the recovery plan to address the crisis generated by the coronavirus
pandemic. The vote was possible after a deal was agreed at the Brussels summit
last week, when EU leaders managed to convince Hungary and Poland to no longer
block this financing plan worth no less than 1,800 billion euros. The two
countries were opposed to linking payment of European funds to compliance with
the rule of law. The conditionality mechanism allows the EU to stop funding for
any given member state when the European Commission deems that state to be in
breach of the rule of law. The deadlock was overcome through a compromise that
implies the involvement of the European Court of Justice.

The 7-year budget allows
the European Union to disburse significant public funds to address the
coronavirus pandemic and its consequences. Thus, EU states may embark on
sustainable recovery, securing and creating new jobs. The budget version approved
by the European Parliament provides for 15 billion euros in top-ups for key EU
programmes. The EU4Health programme will thus see its funding triple and the
Erasmus education programme will benefit from the equivalent of an additional
year of financing. Through this financial package, the European Parliament aims
to ensure that funding for research, a key sector, will keep increasing. Moreover, 1 billion euros will be set aside to
address any future needs and crises and could also be added to the EU’s flagship
programmes.

Under the new EU budget,
Romania is entitled to 46.3 billion euros, which will be made available at the
start of the new year. Romania will also benefit from an additional 30.5
billion euros for economic recovery after the coronavirus crisis. Investment will
focus on the worst-hit sectors.

Concerning the recovery
funds provided outside the regular budget to restart the economy, the European
Parliament will make sure they are used in a transparent way. Together with the
European Council, Parliament will check any deviation from previously agreed
plans. (CM)