The European Commission unveils its proposal for the next Multiannual Financial Framework

The European Commission presented an important document. The document explains how the European Union will spend its money from 2014 until 2020

On 29 June 2011, José Manuel Barroso, President of the European Commission, presented the Commission's proposal for the next Multiannual Financial Framework (MFF) called “A budget for Europe 2020”. In this document, the European Commission proposes to increase by 4.8% the current EU budget and tables on a €1.025 billion budget for the 2014-2020 period.

To finance this ambitious budget, which represents however less than one fiftieth of the budgets of Member States, the European Commission intends to change the origin of its resources. Actually, as mentioned in the previous budget review unveiled last October, to compensate the necessary reduction of national contributions due to austerity measures, the Commission proposes to levy new taxes namely a EU-wide VAT and a tax on financial transactions.

Concerning the EU main expenditures after 2013, the one trillion budget will be divided into five headings: Smart and Inclusive Growth (€ 490, 9 billion) Sustainable Growth (€382, 9 billion), Security and Citizenship (€18, 5 billion, Global Europe (€70 billion) and Administration (62, 6 billion).

More precisely, in the field of Justice, the European Commission suggests for the 2014-2020 period to allocate 802 million euros and streamline the existing programmes into a Justice programme (€416 million) and a Rights and Citizenship programme (€387 million). The integrated programmes will support a series of thematic priorities and finance activities such as: training for legal professionals; strengthening networks; cross-border cooperation on enforcement and information and public awareness raising, including support for national and European campaigns to inform people of their rights, as guaranteed under EU law, and how to enforce them in practice.

Concerning Employment and Social Affairs, a European employment and social inclusion initiative will be set up through joint action in the fields of education and vocational training, employment and inclusion. €88.3 billion will be delivered essentially through three main instruments:

• First, the European Social Fund will receive €84 billion to invest in employment promotion; skills, education and life-long learning; social inclusion and the fight against poverty; and enhancing institutional capacity and efficient public administration. For the post-2013 period, the ESF will be covered by the Common Strategic Framework (CSF) for structural funds.

• Second, an integrated programme for employment, social policy and inclusion will be created. With a €850 million budget, it will entail a Europe-wide platform for mutual-learning processes; the promotion of evidence-based social innovation and of intra-EU labour mobility and improving access to employment opportunities, in particular for young people and will support entrepreneurship and self-employment.

• Third, €3 billion will be allocated to supporting for workers made redundant through the European Globalisation Adjustment Fund.

The Commission also proposes to strengthen programmes for education and vocational training. In order to overcome the fragmentation of existing instruments (the separate sub-programmes of the Lifelong Learning Programme, the international aspects of Higher Education, including Erasmus Mundus, and Youth in Action), it recommends to create an integrated programme of €15.2 billion for education, training and youth, with a clear emphasis on developing skills and mobility.

Furthermore, the European Commission intends to allocate €2.75 billion to the EU's health and consumer polices for the 2014-2020 period. This amount will be split into three new programmes: Food Safety Programme (€2.2 billion), Health for Growth Programme (€396 million) and Consumers Programme (€175 million).

Eventually, with a €203 million budget the Europe for Citizens programme will continue to support transnational town twinning partnerships, EU level civil society umbrella organisations and think tank. In addition to this specific programme, the European Commission will improve its communication to the public to strengthen EU citizens' awareness of European affairs and their rights.

Difficult negotiations between the European Parliament and the Council of Minister over this proposal are expected in the months to come as the UK has already qualified the proposal as “unrealistic”. The next MFF should be adopted by the end of 2012.