EU budget 2020: €168.7 billion

SUMMARY OF:

Definitive adoption (EU, Euratom) 2020/227 of the European Union’s general budget for the financial year 2020

WHAT IS THE AIM OF THIS ACT?

It is the text agreed by the European Parliament and the Council of the EU adopting the EU’s budget for 2020.

The budget:

helps turn the EU’s political priorities into reality;
sets out and authorises the total annual revenue and expenditure for the EU and the European Atomic Energy Community;
identifies specific priority expenditure areas.

For 2020, the priorities areas that matter to citizens include:

climate change;
jobs;
young people;
security and solidarity in the EU.

KEY POINTS

The 2020 EU budget provides for €168.689 billion in spending commitments* and €153.566 billion in payment* credits.

The main areas of expenditure are:

	Commitments (in € million)	Payments (in € million)
Competitiveness, for growth and jobs (research, innovation, education, small- and medium-sized enterprises, etc.)	25,285	22,308
Economic, social and territorial cohesion (regional, social and investment funds, etc.)	58,646	50,046
Sustainable growth, natural resources (agriculture, fisheries, rural and environment policies, etc.)	59,907	57,904
of which: Direct financial support to farmers and market intervention measures	43,410	43,380
Security and Citizenship (border protection, asylum policy, anti-terrorism activities, etc.)	3,729	3,685
Global Europe (development aid outside EU, humanitarian aid, etc.)	10,262	8,929
Administration (staff salaries, pensions and running costs)	10,272	10,275
Special instruments	588	419

The UK, despite leaving the EU on 31 January 2020, continues to contribute to and participate in the implementation of the budget until the end of 2020 as though it were an EU member state.

FROM WHEN DOES THE ACT APPLY?

It has applied since 1 January 2020.

BACKGROUND

The budget is primarily an investment budget financing the whole range of EU policies, activities, institutions and agencies. It represents about 1% of member countries’ gross national income and some 2% of all EU public spending. It aims to complement national budgets and implement priorities which all EU governments have agreed.
The 2020 EU budget is the last under the current multiannual financial framework running between 2014 and 2020.
On 5 June 2019 the European Commission proposed a draft EU budget for 2020 of €168.3 billion in commitments (+ 1.3% over 2019) and €153.6 billion in payments (+ 3.5%). The Council slightly reduced that amount, while the Parliament increased it. On 18 November 2019, the three institutions reached an agreement during the conciliation procedure*. The 2020 EU budget was formally endorsed by the Council on 26 November 2019 and adopted by the European Parliament on 27 November 2019.

For more information, see:

EU Budget (European Commission).

KEY TERMS

Commitments: reservation of money to cover for subsequent expenses. It is the total cost of legal obligations (contracts, grant agreements/decisions) to provide finance in a given year, provided certain conditions are met.

Payments: money that will be paid out via cash or bank transfers to beneficiaries during the budget year.

Conciliation procedure: negotiations between the Council (EU governments), the European Parliament and the Commission (acting as honest broker) to agree the final budget.

MAIN DOCUMENT

Definitive adoption (EU, Euratom) 2020/227 of the European Union’s general budget for the financial year 2020 (OJ L 57, 27.2.2020, pp. 1-2384)

last update 26.02.2020

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