Brussels: Europe and the Arabs
The European Commission in Brussels welcomed the historic agreement reached by the European Council on the first-ever review of the ceilings of the Multiannual Financial Framework. The Council’s approval confirms all the priorities of the Authority’s proposal and covers 80% of the required funding. This strengthening will allow the European Union to continue implementing our shared priorities, for the benefit of the peoples of our Union and beyond.
The main elements addressed in the review include:
Critical support for Ukraine: The new Ukraine Facility, based on grants, loans and guarantees, with a total capacity of EUR 50 billion in 2024-2027, will meet Ukraine's immediate recovery and modernization needs on its path towards the EU.
Further action on migration and external challenges: A €9.6 billion boost will support the internal and external dimensions of migration, assisting partners in the Western Balkans, the Southern Neighborhood and beyond.
Strengthening sovereignty and competitiveness: The Strategic Technologies Platform for Europe (STEP) will strengthen the EU's long-term competitiveness in biotech, in the areas of digital and deeptech, cleantech and biotech with new flexibility and incentives to finance cohesion and recovery. and the Resilience Facility, and an increase of €1.5 billion from the European Defense Fund.
Stronger response to unexpected challenges: The EU budget has been mobilized to address recurring crises since 2021 – the energy crisis, food crises, fallout from the Russian war amid rising inflation and interest costs. To ensure that the EU budget can continue to respond to unforeseen circumstances, the Resilience Instrument will be strengthened by €2 billion while the ceiling on the Solidarity and Emergency Aid Reserve will be increased by €1.5 billion and divided into two separate instruments: the European Solidarity Reserve and the Emergency Aid Reserve.
A three-step emergency mechanism and a new tool will provide clarity on budgetary mechanisms for financing NextGenerationEU-related costs.
Funding for the review will be provided through a combination of new resources and reallocations within the EU budget. This would allow the EU to continue working on the most urgent priorities while minimizing the impact on national budgets.
European Commission President Ursula von der Leyen said: “The European Council reaffirmed Europe's firm commitment to standing by Ukraine and approved the first-ever review of our multi-year budget that confirms the priorities presented by the Commission in June.” . I am very satisfied that we have obtained 80% of the funding we requested. We reaffirmed our commitment to combating illegal migration, and our commitment to supporting our partners in the Western Balkans and in the southern neighbourhood. We will also work to increase our capacity to deal with natural disasters and humanitarian crises. Furthermore, we will support the much-needed development of critical technologies in Europe, including defense technology, and increase our competitiveness. With this agreement, Europe stands united and well equipped to face the challenges ahead. In other words: today, Europe is stronger.
In 2020, the European Union approved its long-term budget for the period 2021-2027. Together with the NextGenerationEU recovery instrument, this package is worth €2.018 trillion at current prices, constituting the largest stimulus package ever funded by the EU. Since 2021, the Budget has played an essential role in helping to repair the economic and social damage caused by the coronavirus pandemic and helping with the transition towards a more resilient, modern and sustainable Europe.
On 20 June 2023, the European Commission proposed a targeted review of the Multiannual Financial Framework 2021-2027.