Analytics, Budget, EU – Baltic States, Financial Services, Legislation

The Council and the European Parliament reached agreement on an EU budget for 2018 at the Budget-Ecofin Council and the Parliament conciliation meeting; the budget strongly reflects the EU's main policy priorities.

Discussions at the Council’s Budget-Ecofin meeting represented the final stage of the EU budget negotiations, which have lasted for several months. Thus, the Commission issued its draft budget for 2018 in May, based on the Multiannual Financial Framework (MFF); the Council reached an agreement on its position in June and the Parliament in October 2017. 

The Conciliation Committee consists of representatives from the EU Council and an equal number of MEPs (members of the European Parliament). The adoption of the joint text takes place in the Council by a qualified majority and by a majority of the representatives of the European Parliament.

When making their proposal, both the Council and the Parliament took into account the draft budget submitted by the European Commission in spring 2017, according to which the EU budget for 2018 should be €160.6 billion. The Council has proposed that the budget should be about €1.8 billion smaller. However, the European Parliament has suggested that the budget should be €2 billion bigger than the Commission`s initial proposal. 

The budget priorities of the Council and the Parliament are the same: the EU competitiveness in the world, including such issues as science, research, innovation, employment, economic growth, trans-European networks, etc., as well as addressing the migration crisis and security issues.

Thus, total commitments in the 2018 budget are set at about €160.1 billion and payments reached nearly €144.7 billion. This reflects the ideas of maximising the impact of EU spending on urgent European issues, whilst maintaining sufficient leeway to be able to react to unforeseeable needs.  

Main development priorities for the EU states in 2018

Chief Council negotiator for the 2018 EU budget and Estonia’s deputy finance minister underlined that the 2018 budget focused on such priorities as boosting sustainable economic growth, increased employment and cohesion”. Besides, job creation, strengthening security and addressing the challenges posed by migration were also included.  

Two main priority items are envisaged in the EU’s 2018 budget:

- Smart and inclusive growth, which is divided into two directions: a) competitive growth and jobs (with about €20 bln), and b) cohesion issues (with about €46 bln)

- Sustainable growth, with about  €56 bln 

Thus, out of about €144 bln payments for 2018, over €112,6 bln are for new economic growth approaches with such directions as science and investment, “smart” and sustainable growth. 

However, it is well worth mentioning another budget-2018 priority (with about € 9 bln), i.e. “global Europe” designed to increase the roles and influences of the EU states around the world.

Table: EU-2018 budget through commitments and payments

References: = Council cannot accept Parliament amendments on 2018 budget (press release, 25/10/2017); = EU general budget for 2018. Source: http://www.consilium.europa.eu/en/meetings/ecofin/20a>

Reference: http://www.consilium.europa.eu/en/meetings/ecofin/20a>