The consequences of delaying the #EULongTermBudget

European Council President Charles Michel (pictured) has called the make-or-break summit to try and bring EU heads of state and government together behind a common position that can serve as a mandate to start negotiations with the Parliament and Commission.

Parliament adopted its position in November 2018, following the European Commission’s proposal in May 2018. After discussions with EU leaders, Michel put forward a budget proposal on 14 February, which will form the basis of talks. It has already been criticized as inadequate by MEPs.

Time is money

If the Council fails once more to deliver, it will have serious consequences for the EU’s next seven-year budget, which is meant to start on 1 January 2021. As many as a million young people would not be able to benefit from an Erasmus+ exchange in 2021, according to estimates.

About 5,000 research jobs in the EU per month (3-4% of overall EU research jobs) would be lost, together with 7,000 jobs in the wider economy and more than 100,000 EU-funded projects within areas such as energy efficiency, healthcare and business support would not be able to start on time.

The current EU long-term budget was adopted at least six months too late for it to be implemented properly by the member states.

This had consequences for example in the area of migration. It was difficult for the Greek administration to use EU funding to prepare for the migration crisis in 2015. Shelters were not ready and conditions to receive refugees were poor. Sweden and Austria did not have EU funding to help accommodate people coming through the Balkan route.

In addition, about 25,000-30,000 Erasmus+ exchanges between students and teachers from member states and partner countries planned for 2014 could not take place.

Last week in Strasbourg, Parliament president David Sassoli stressed that it’s not enough for the Council to agree on its own budget position. Its proposal also has to be “ambitious” in order to improve and add value to people's lives in the future.

“These are not just abstract figures, but have real consequences for the lives of all Europeans,” he said, mentioning the significant investments needed for example for Europe to become the first climate neutral continent.

“A well-funded EU budget is in the interest of all Europeans and all member states.”

Read more about the EU’s long-term budget.