EU settles Budget deal for 2017

(BRUSSELS) - EU finance ministers and Euro-MPs reached a provisional deal on the 2017 EU budget in the early hours of Thursday morning, with money focused on tackling the migration crisis and reinforcing security.

In the provisional budget, which sets total commitments at EUR 157.88 bn and payments at EUR 134.49 bn, more money is being earmarked for the migration crisis and to reinforce security, where the EU Council and the Parliament agreed to increase commitments by around 11.3 pre cent compared to 2016, to reach EUR 5.91 billion.

The money will be used to help EU Member States with the resettlement of refugees, creation of reception centres, support for integration measures and the returns of those who have no right to stay. It will also help to enhance border protection, crime prevention, counter terrorism activities and protect critical infrastructure.

"The strength of the 2017 EU budget lies in its focus on priority measures such as addressing migration, including by tackling its root causes, and encouraging investment as a way to help stimulate growth and create jobs", said Ivan Lesay, the Slovak Presidency's chief negotiator for the annual budget. "This maximises the budget's impact to the benefit of EU taxpayers, European citizens and companies. And it respects member states' continued efforts to consolidate their public finance," he said.

"In turbulent times, it is most reassuring that the EU institutions can agree - late at night, but on time - on a budget for Europe. With a special emphasis on growth-oriented programmes and extra money for Erasmus and the Youth Employment Initiative, Parliament has decided to invest in the future. That's what Europe needs right now", said the Chair of the Parliament's Budgets committee, Jean Arthuis MEP.

In the negotiations, which lasted 18 hours, MEPs obtained better support for unemployed youngsters and additional funds to boost key initiatives supporting SMEs, transport infrastructure projects, research and Erasmus+ student mobility.

Commitments of EUR 21.3 billion were agreed to boost economic growth and create new jobs under sub-heading 1a (competitiveness for growth and jobs). This amounts to an increase of around 12% compared to 2016.

Erasmus+ increases by 19% to EUR 2.1 billion and the European fund for strategic investments which raises by 25% to EUR 2.7 billion.

The 2017 EU budget also includes EUR 500 million in commitments for the youth employment initiative to help young people to find a job. A further EUR 500 million was agreed for supporting milk and other livestock farmers with additional support measures announced in July.

With a view to matching member states' consolidation efforts at national level the Council and the Parliament reminded all EU institutions to complete the 5% staff reduction by 2017 as agreed in 2013.

The 2017 EU budget is expected to be formally adopted by the Council on 29 November and by the Parliament on 1 December.

Draft EU Budget 2017 – Questions and Answers

EU annual budget