EU draft budget for 2023 reaches 185.6 billion euros

The European Commission continues to support the green and digital sectors and recovery through Next Generation EU funds

The European Commission on Tuesday proposed an annual EU budget of €185.6 billion by 2023, to be complemented by some €113.9 billion from the Next Generation EU funds. This money will be spent on investments to foster Europe’s strategic autonomy and ongoing economic recovery, safeguard the sustainability and create jobs. In this way, Brussels confirms its commitment to the green and digital sectors. And responds to the needs arising from the health crisis and the war in Ukraine.

Among the budget items, the 12.3 billion euros to be allocated to Horizon Europe, the EU’s largest research programme, and 708 million euros for LIFE, the only EU programme dedicated exclusively to the environment, stand out. Reflecting the different EU priorities, the budget proposal is divided as follows (in commitment appropriations):

• 103.5 billion in Next Generation EU grants under the Recovery and Resilience Mechanism (RRM) to sustain economic recovery and growth in the wake of the coronavirus pandemic and to address the challenges posed by the conflict in Ukraine.
• 53.6 billion for the Common Agricultural Policy and EUR 1.1 billion for the European Maritime, Fisheries and Aquaculture Fund, for the benefit of European farmers and fishermen, and also to strengthen the resilience of the agri-food and fisheries sectors and provide the necessary scope for crisis management in the light of expected global food supply difficulties.
• 46.1 billion for regional development and cohesion to underpin economic, social, and territorial cohesion, as well as infrastructure to support the ecological transition and the Union’s priority projects.
• 14.3 billion in support of the EU’s external partners and European interests in the world, of which EUR 12 billion under the Neighbourhood, Development Cooperation and International Cooperation Instrument – Global Europe (IVCDCI – Global Europe), EUR 2.5 billion for the Instrument for Pre-Accession Assistance (IPA III) and EUR 1.6 billion for Humanitarian Aid (HUMA).
• 13.6 billion for research and innovation, of which €12.3 billion for Horizon Europe, the EU’s flagship research programme. It could receive an additional €1.8 billion in grants under Next Generation EU.
• 4.8 billion for European strategic investments, of which €341 million for InvestEU for key priorities (research and innovation, double green and digital transition, health, 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 to shape the digital future of the Union. InvestEU could receive an additional €2.5 billion in grants under Next Generation EU.
• 4.8 billion for people, social cohesion, and values, including €3.5 billion for Erasmus+ to provide education and mobility opportunities for people, €325 million to support artists and creators across Europe, and €212 million to promote justice, rights, and values.
• 2.3 billion for the environment and climate action, of which 708 million euros for the LIFE programme to support climate change mitigation and adaptation, and 1.5 billion euros for the Just Transition Fund to ensure that the ecological transition works for all. This fund could receive an additional €5.4 billion in grants under Next Generation EU.
• 2.2 billion for space expenditure, mainly for the European Space Programme, which will bring together the Union’s action in this strategic area.
• 2.1 billion for the protection of our borders, of which EUR 1.1 billion for the Integrated Border Management Fund (IBMF) and EUR 839 million for the European Border and Coast Guard Agency (Frontex).
• 1.6 billion for migration-related expenditure, of which €1.4 billion to support migrants and asylum seekers is in line with our values and priorities.
• 1.2 billion to address common defence and security challenges, of which €626 million to support capacity building and research under the European Defence Fund (EDF), and €237 million to support military mobility.
• 927 million to ensure the functioning of the single market, including EUR 593 million for the Single Market Programme and almost EUR 200 million for anti-fraud, taxation, and customs work.
• 732 million for EU4Health to ensure a comprehensive health response to people’s needs, and €147 million for the EU Civil Protection Mechanism (EU-CPRM) to be able to deploy operational assistance rapidly in the event of a crisis.
• 689 million for security, of which EUR 310 million will go to the Internal Security Fund (ISF), which will fight terrorism, radicalisation, organised crime, and cybercrime.
• 138 million for secure satellite connections under the proposal for a new Union programme, the Union’s secure connectivity programme.
• Budgetary resources will be foreseen for the European Chip Act under Horizon Europe and through redeployment from other programmes.

According to the European Council conclusions of 31 May 2022, additional proposals for financing the effects of the war in Ukraine, both externally and internally, will be made later this year based on a more accurate assessment of needs.