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EUROPEAN COMMISSIONEUROPEAN COMMISSIONBrussels, 2.5.2018Brussels, May 2, 2018COM (2018) 321 finalCOM (2018) 321 finalCOMMUNICATION FROM THE COMMISSIONCOMMUNICATION FROM THE COMMISSIONA Modern Budget for a Union that Protects, Empowers and Defends The Multiannual Financial Framework for 2021-2027A modern budget for a Union that protects, empowers and defends Multiannual Financial Framework 2021-2027{SWD (2018) 171 final}{SWD (2018) 171 final}1.A NEW, MODERN BUDGET FOR THE UNION OF 271. A NEW MODERN BUDGET FOR THE UNION OF 27Once every seven years, the European Union decides on its future long-term budget - the Multiannual Financial Framework. The next such budget, starting on 1 January 2021, will be the first for the European Union of 27.Every seven years the European Union decides on its future long-term budget - the multiannual financial framework. The next financial framework, starting January 1, 2021, will be the first budget for the European Union of 27.This is a pivotal moment for our Union. It is an opportunity for Member States and the European institutions to unite around a clear vision for the future of Europe. A time to show unequivocally that the Union is ready to back up its words with the actions needed to deliver on our common vision. A modern, focused EU budget will help to continue bringing to life the positive agenda proposed by President Jean-Claude Juncker in his State of the Union address before the European Parliament on 14 September 2016 1 and agreed by the Leaders of the 27 Member States in Bratislava on 16 September 2016, as well as in the Rome Declaration of 25 March 2017. A modern, focused EU budget will help to make the Union big on big and small on small things, as agreed in Rome.This is a crucial moment for our Union. For the member states and institutions of the EU, this is an opportunity to stand united behind a clear vision of the future for Europe. The moment to show unequivocally that the Union is ready to turn its words into deeds that are necessary to make our common vision a reality. A modern, focused EU budget will contribute to the positive agenda presented by President Jean-Claude Juncker in his State of the Union address 1 to the European Parliament on 14 September 2016 and by the heads of state and government of the 27 member states it was decided on September 16, 2016 in Bratislava and on March 25, 2017 in the Rome Declaration to give concrete form. A modern, focused EU budget will help the Union to be big on big issues and small on small issues - just as agreed in Rome.Negotiations on the next Multiannual Financial Framework come at a time of new dynamism for the Union, but also of great challenges. The Union acted decisively in the wake of the financial and economic crisis to lay solid foundations for a sustainable recovery. The economy is now growing and creating jobs. The focus of the Union is increasingly on delivering efficiently and fairly on the things that really matter in the daily lives of citizens. And to do this for the citizens in all Member States of the Union. President Juncker’s call to overcome divisions and make the Union more united, stronger and more democratic 2 should therefore also be reflected in the design of the new budget.The negotiations on the next multiannual financial framework come at a time when the Union is experiencing a new dynamic, but it is also facing major challenges. In the wake of the economic and financial crisis, the Union has taken decisive steps to lay solid foundations for a sustainable recovery. The economy is growing again and creating new jobs. The Union is increasingly paying attention to how we can make a difference in the things that really matter to people in everyday life, in an efficient and fair manner, for the citizens of all Member States of the Union. President Juncker's call to overcome divisions and create a more united, stronger and more democratic Union 2 should therefore also be reflected in the design of the new budget.Choices taken in the coming months will shape the Union for decades to come. The stakes are high. Technological and demographic change is transforming our economies and society. Climate change and scarce resources are forcing us to look hard at how we can ensure that our way of living is sustainable. Unemployment, notably amongst young people, remains high in many parts of Europe. New security threats require new responses. The refugee crisis, caused by war and terror in Europe's neighborhood, has shown the need to reinforce our capacity to manage migratory pressures and to address their root causes. Geopolitical instability is increasing and the values ​​and democratic principles on which our Union is founded are being tested.The course set in the coming months will shape the Union for decades. Much is at stake. Technological and demographic change is changing our economies and our society. Climate change and scarcity of resources force us to look closely at how we can make our way of life sustainable. Unemployment, especially among young people, is still high in many parts of Europe. New security threats require new answers. The refugee crisis triggered by war and terror in the neighboring regions of Europe has shown that we need to develop our capacity to act in order to cope with the pressure caused by migration and to combat the causes of migration. Global instability is growing and the values ​​and democratic principles on which our Union is based are being put to the test.The proposals the Commission is presenting today for the 2021-2027 Multiannual Financial Framework will help responding to these opportunities and challenges. They are the product of an open and inclusive debate. The Commission has set out options for the future EU budget in its Communication of 14 February 2018. 3 The Commission has listened carefully to the European Parliament 4, to Member States, to national Parliaments, to the beneficiaries of EU funding and to other stakeholders. Open public consultations held earlier this year generated more than 11,000 responses.The proposals the Commission is putting forward today for the Multiannual Financial Framework 2021-2027 will help address these opportunities and challenges. They are the result of an open, inclusive debate. In its Communication of 14 February 2018 3, the Commission identified options for the future EU budget. The Commission has listened carefully to the European Parliament 4, Member States, national parliaments, beneficiaries of EU funds and other stakeholders. The open consultations earlier in the year received over 11,000 contributions.The Commission is proposing a new, modern long-term budget, tightly geared to the political priorities of the Union at 27. The proposed budget combines new instruments with modernized programs to deliver efficiently on the Union’s priorities and to rise to new challenges. The proposals also show how the financing of the budget could be simplified and reformed to forge a stronger link with the political priorities. These proposals are designed to make a unique impact in building a prosperous, secure and cohesive Europe. They do so by focusing on the areas where the Union is best placed to deliver.The Commission is proposing a new, modern long-term budget, closely aligned with the political priorities of the Union of 27. The proposed budget combines new instruments with modernized programs to effectively address the Union's priorities and meet new challenges. The proposals also show how budget funding could be simplified and reformed to more closely relate to policy priorities. The proposals are designed to make decisive progress in building a Europe characterized by prosperity, security and cohesion. This is to be achieved by focusing on those areas where the Union can really make a difference.In each area, the Commission proposes the level of funding that will be needed to live up to our collective ambitions. The legal proposals for the individual future financial programs will follow in the coming weeks.For each area, the Commission is proposing the budget that will be necessary to achieve our collective goals. The legal proposals for the individual future funding programs will follow in the coming weeks.The proposals also respond in a realistic and balanced way to the budgetary consequences of the withdrawal of the United Kingdom. The departure of an important contributor to the EU budget will have a financial impact and the future Financial Framework must take account of that. Maintaining a level of support that matches our ambitions across the priority areas will require additional contributions from all member states in a fair and balanced way. In parallel, no effort must be spared to make the EU budget more efficient. The Commission is proposing savings in some of the main spending areas and reforms across the budget to make it more streamlined and to get the most from every euro.The proposals also include a realistic and balanced response to the budgetary implications of the UK's exit. The elimination of a major contributor to the EU budget will have financial consequences that the future financial framework will have to take into account. If all priority areas are to continue to receive support in line with our ambitious goals, then additional contributions will have to be made by all Member States in a fair and balanced manner. At the same time, everything must be done to make the EU budget more efficient. The Commission is proposing savings in a number of key spending areas and reforms across the budget to streamline it and get the most out of every euro.Europe is in the midst of the biggest debate on its future for a generation.It was kickstarted by the Commission's White Paper on the Future of Europe, published on 1 March 2017 5, and will culminate at the Informal Leaders' Meeting in Sibiu, Romania on 9 May 2019. Weeks before Europeans take to the polls, this will be a time for the Leaders of the 27 Member States and for the European Parliament to stand up for the Europe they want and to equip the Union with the means to deliver. Decisive progress on the future long-term budget by this time will send out a strong message of resolve and determination to move forward together.Europe is in the midst of the greatest debate about its future this generation has ever had. It was initiated with the Commission's White Paper on the Future of Europe of March 1, 2017 5 and will be concluded at the informal summit of heads of state and government on May 9, 2019 in Sibiu, Romania - just a few weeks before the citizens of Europe close walk the urns. This will be an opportunity for the Heads of State or Government of the 27 Member States and for the European Parliament to stand up for the Europe they really want and to give the Union the means it needs to make that Europe a reality . By then, if decisive progress is made on the future long-term budget, it will be a strong signal of determination and willingness to move forward together.2019 will be a new start for our Union of 27. We must be ready for it. Time is short to put the new framework into place and make sure that the new programs are ready to deliver for the EU’s citizens and businesses from day one. The new EU budget will be a simpler, more flexible and more focused budget. A budget guided by the principles of prosperity, sustainability 6, solidarity and security. A budget for a European Union that protects, empowers and defends. A budget that unites and does not divide. A budget that is fair for all Member States. A budget for Europe’s future. The work on this needs to start now.The year 2019 will be a new beginning for our Union of 27. We have to be prepared for that. There is not much time left to implement the new framework and ensure that the new programs are operational from day one for citizens and businesses in the EU. The new EU budget will be simpler, more flexible and more focused. A household that is shaped by the principles of prosperity, sustainability 6, solidarity and security. A budget for a European Union that protects, empowers and defends. A household that does not divide, but unites. A budget that is fair to all Member States. A budget for the future of Europe. Work on it must start now.2. MODERNISING THE EU BUDGET2. MODERNIZATION OF THE EU BUDGETThe EU budget has long been a vital source of growth-enhancing investment for the whole of Europe. Even in times of crisis, it has allowed the Union to support growth and job creation and to drive long-term innovation and economic reform. The creation of the European Fund for Strategic Investments (the “Juncker Fund”) illustrates well how the EU budget was able to provide a much-needed boost to Europe's economic recovery at a critical moment. The EU budget has also been a decisive part of the response to our many serious challenges, from large-scale migration flows, to security threats and climate change.The EU budget has long been an indispensable source of growth-enhancing investment across Europe. Even in times of crisis, it has enabled the Union to sustain economic and employment growth and carry out long-term innovations and economic reforms. The creation of the European Fund for Strategic Investments (the so-called 'Juncker Fund') is a good example of how the EU budget has succeeded in giving the European economy the much-needed boost at a critical juncture. The EU budget has also played a major role in our responses to the many serious challenges, from massive refugee flows to security threats to climate change.Recent experience has laid bare some weaknesses in the current framework. Despite some improvements, the EU budget is still too rigid. A lack of flexibility has prevented Europe from reacting quickly and effectively enough in a fast-changing world. Complex and divergent funding rules make it harder to access EU funding and divert attention from what really counts: achieving results on the ground. Funds are spread over too many programs and instruments, both within and outside the budget. More can be done to modernize and simplify the two biggest spending blocks in the budget, the Common Agricultural Policy and Cohesion Policy. Many of the new priorities for a Union that protects, empowers and defends need new, tailored instruments to turn ambitions into reality.Recent experience has revealed some weaknesses in the current framework. Despite some improvements, the EU budget is still too rigid. A lack of flexibility prevents Europe from acting quickly and effectively enough in a rapidly changing world. Complex and differently structured funding regulations make access to EU funds more difficult and distract from what is essential: the results that are to be achieved in practice. Funds are spread across too many programs and instruments, both inside and outside the budget. More can be done to modernize and simplify the two largest blocks of expenditure in the budget - the common agricultural policy and the cohesion policy. Many of the new priorities of a Union that protects, strengthens and defends require new, tailor-made instruments so that goals can become reality.The main message from the Commission’s extensive consultations has been received loud and clear. A more united, stronger and more democratic Europe needs a new, modern budget. And it needs fresh thinking on how that budget can deliver for people across the Union. The Commission’s thorough spending review 7 has helped to pinpoint what has worked well in the past and what should be preserved in the next budget. But it also revealed where reform is needed to unlock the full potential of the EU budget. Based on this assessment, the Commission is proposing a modern framework and a set of new and reformed programs shaped by the following principles:The central message of the extensive consultations carried out by the Commission was unmistakable. A more united, stronger and more democratic Europe needs a new, modern budget. And fresh ideas on how this budget can produce concrete results for people across the Union. The Commission's in-depth expenditure review 7 has shown what has worked well so far and should be continued in the next budget. But it also revealed where reforms are needed to realize the full potential of the EU budget. On the basis of this assessment, the Commission is now proposing a modern framework and a number of new, reformed programs, based on the following principles:A stronger focus on European added value. The EU budget is modest in comparison with the size of the European economy and national budgets. This makes it vital that it invests in areas where the Union can offer real European added value to public spending at national level. Pooling resources can achieve results that Member States acting alone cannot. 8 examples include cutting-edge research projects that bring together the best researchers from across Europe, or empowering young people and small businesses to take full advantage of the opportunities the single market and the digital economy offer. Other instances when pooling resources helps us do more include catalysing key strategic investments. These investments hold the key to Europe’s future prosperity and its leadership on the global Sustainable Development Goals. The same is true when it comes to equipping the Union to defend and protect its citizens in a fast-changing world where many of the most pressing issues transcend national borders.· A stronger focus on European added value. The EU budget is modest in size when compared to the European economy and national budgets. It is all the more important that it is invested in areas where the Union can offer real European added value to public spending at national level. If resources are pooled, results can be achieved which Member States would not be able to achieve on their own. Examples include innovative research projects involving the best minds from across Europe, and opportunities for young people and small businesses to take advantage of the opportunities offered by the single market and the digital economy. More can be achieved by pooling funds when mobilizing significant strategic investments. These investments are key to Europe's future prosperity and its leadership in global sustainability goals. The same applies when it comes to giving the Union the means it needs to protect its citizens in a rapidly changing world, in which the most pressing issues usually do not stop at national borders.A more streamlined and transparent budget. The Commission is proposing a more coherent, focused and transparent framework. The structure of the budget will be clearer and more closely aligned with priorities. The Commission proposes to reduce the number of programs by more than a third, for example by bringing fragmented funding sources together into new integrated programs and radically streamlining the use of financial instruments.· A leaner and more transparent budget. The Commission proposes a more coherent, focused and transparent framework. The structure of the budget will be clearer and more closely aligned with the priorities. The Commission proposes cutting the number of programs by more than a third, for example by merging previously separate sources of funding into new integrated programs and radically streamlining the use of financial instruments.· Less red tape for beneficiaries. The Commission proposes to make rules more coherent on the basis of a single rulebook. 9 This will drastically reduce the administrative burden for beneficiaries and managing authorities.It will facilitate participation in EU programs and accelerate implementation. It will make it easier for different programs and instruments to work together to boost the impact of the EU budget. In addition, the Commission will propose to simplify and streamline State aid rules to make it easier to link up instruments from the EU budget with national funding.· Less bureaucracy for the beneficiaries. The Commission proposes to make the rules more coherent and to summarize them in a uniform set of rules 9. This will drastically reduce the bureaucratic burden for beneficiaries and managing authorities. Participation in EU programs will be easier and implementation faster. This will make it easier to link the various programs and instruments together so that EU funds can have a greater impact. In addition, the Commission will propose to simplify and streamline the state aid rules so that instruments from the EU budget can be more easily combined with national funding.· A more flexible, agile budget. In an unstable geopolitical environment, Europe must be able to respond quickly and effectively to unforeseen demands. The Commission is proposing to build on existing mechanisms to make the budget more agile. This includes increasing flexibility within and between programs, strengthening crisis management tools and creating a new “Union Reserve” to tackle unforeseen events and to respond to emergencies in areas such as security and migration.· A more flexible, agile household. In an unstable global political environment, Europe must be able to react quickly and effectively to unexpected demands. The Commission proposes strengthening the existing mechanisms to make the budget more agile. This includes, among other things, more flexibility in and between programs, strengthening of the crisis management instruments and the establishment of a new “Union reserve” for unforeseen events and emergencies in areas such as security and migration.A budget that performs. The EU budget can only be judged a success if it delivers tangible results on the ground. The Commission is proposing to strengthen the focus on performance across all programs, including by setting clearer objectives and focusing on a smaller number of higher quality performance indicators. This will make it easier to monitor and measure results - and to take make changes when necessary.· A powerful household. The EU budget can only be considered a success if it produces tangible results in practice. The Commission proposes that all programs focus more on performance, including by setting clear targets and using fewer but better quality performance indicators. This makes it easier to track and measure results - and to make adjustments where necessary.The design of future programs is only the first step. The real test is whether the programs deliver on the ground. The efficient and effective implementation of the next generation of programs is therefore a high priority. This is a shared responsibility between the Commission, Member States, regional authorities and everyone involved in managing the EU budget.Designing future programs is only the first step. The decisive factor is whether the programs work in practice. That is why the efficient and effective implementation of the next generation of programs has high priority. The Commission, Member States, regional authorities and everyone involved in managing the EU budget have a shared responsibility.It is also essential to strengthen the link between EU funding and the respect for the rule of law. The EU is a community based on the rule of law, which also means that independent courts at national and EU level are entrusted with watching over the respect of our jointly agreed rules and regulations, and of their implementation in all Member States. Respect for the rule of law is an essential precondition for sound financial management and effective EU funding. The Commission is therefore proposing a new mechanism to protect the EU budget from financial risks linked to generalized deficiencies as regards the rule of law.A closer link between EU funds and the rule of law is also important. The EU is a community based on the rule of law. This also means that independent courts at national and EU level ensure that our mutually agreed rules and regulations are respected and that they are implemented in all member states. Respect for the rule of law is essential to sound financial management and effective EU funding. The Commission is therefore proposing a new mechanism to protect the EU budget from financial risks related to general rule of law deficits.THE EU BUDGET AND THE RULE OF LAWEU BUDGET AND RULE OF LAWUnder current rules, all Member States and beneficiaries are required to show that the regulatory framework for financial management is robust, that relevant EU rules are being complied with and that the necessary administrative and institutional capacity is in place. The current Multiannual Financial Framework also contains provisions to ensure that the effectiveness of EU funding is not undermined by unsound economic and fiscal policies. | The Commission is now proposing to strengthen the protection of the EU budget from financial risks linked to generalized deficiencies as regards the rule of law in the Member States. If such deficiencies impair or threaten to impair sound financial management or the protection of the financial interests of the Union, it must be possible to draw consequences for EU funding. Any measure taken under this new procedure will need to be proportionate to the nature, gravity and scope of the generalized deficiencies in the rule of law. It would not affect the obligations of the Member States concerned with regard to beneficiaries. | The decision as to whether a generalized deficiency in the rule of law risks affecting the financial interests of the EU will be proposed by the Commission and adopted by the Council through reversed qualified majority voting 10. It will take into account relevant information such as decisions by the Court of Justice of the European Union, reports from the European Court of Auditors, as well as conclusions of relevant international organizations. The Member State concerned will be given the opportunity to set out its reasoning before any decision is taken.The current rules require all Member States and beneficiaries to demonstrate that the budget is managed in a sound legal framework, that relevant EU rules are complied with and that the necessary administrative and institutional capacities are in place. The current Multiannual Financial Framework also contains provisions to ensure that the effectiveness of EU funding is not undermined by weak economic and budgetary policies. | The Commission is now proposing to better protect the EU budget from the financial risks posed by general rule of law deficits in the Member States. If such deficits jeopardize or threaten to jeopardize the sound financial management or the protection of the Union's financial interests, it must be possible to derive consequences for the allocation of EU funds. Any measure taken under this new procedure must be proportionate to the nature, severity and extent of the deficiencies in the rule of law complained of. This does not affect the obligations of the Member State concerned towards the beneficiaries. | The decision on whether the Union's financial interests are affected by a general rule of law deficit is taken by the Council on a proposal from the Commission using the reverse qualified majority procedure 10. It takes into account all relevant information such as decisions by the Court of Justice of the European Union, reports from the European Court of Auditors and conclusions from relevant international organizations. Before a decision is made, the Member State concerned is given the opportunity to comment.3.A BUDGET FOR EUROPE’S PRIORITIES3. A BUDGET FOR EUROPE'S PRIORITIESThe future long-term budget will be a budget for the Union’s priorities. The Commission's proposals will bring the structure and the programs of the EU budget fully into line with the positive agenda of the Union post-2020 as agreed in Bratislava and Rome. The new architecture of the future Multiannual Financial Framework will provide greater transparency on what the EU budget is for and how the different parts of the budget will contribute. It will also provide the flexibility necessary to respond to evolving needs.The future long-term financial framework will be a budget for the Union's priorities. With the Commission's proposals, the structure and programs of the EU budget will be fully aligned with the positive agenda of the Union for the period from 2020 on, decided in Bratislava and Rome. The new structure of the future multiannual financial framework will make it easier to see what the EU budget is used for and how each part of the budget is contributing. In addition, this new budget will have the flexibility it needs to respond to changing requirements.Programs will be arranged around the main thematic spending priorities. These will correspond to the headings in the formal budget structure. Within each priority, programs will be grouped in policy clusters, which will be reflected in the titles of the annual budget. This will provide greater clarity on how they will contribute to policy goals.The programs are assigned to the main thematic spending priorities. These will correspond to the headings in the formal budget. Within the individual priorities, the programs are grouped into policy clusters, which are reflected in the budget titles. This will make it clearer how they contribute to the policy goals.In practice, the formal structure of the budget only tells part of the story. Many of the Union’s priorities are complex and multi-faceted. It would not be possible to tackle every aspect with a single program.Under the Commission's proposals, investment from multiple programs will combine to address key crosscutting priorities such the digital economy, sustainability, security, migration, human capital and skills, as well as support for small businesses and innovation. The Commission proposes to simplify these interactions under the future framework, providing a much more coherent response to Europe's challenges. The following sections set out the main reforms and programs under each of the spending priorities.In practice, however, the formal structure of the household does not reflect the entire reality. Many of the Union's priorities are complex and multifaceted. To want to cover every single aspect with a single program would be simply impossible. The Commission's proposals aim to combine investments from several programs to address key cross-cutting priorities such as the digital economy, sustainability, security, migration, human capital and skills, and small business support and innovation. The Commission proposes to simplify this interlocking in the future framework, thus providing a much more coherent response to the challenges Europe must face. The following sections outline the main reforms and programs under each spending priority.More detailed information on the objectives, design and European added value of the individual programs is contained in the Annex to this Communication.More detailed information on the objectives, the design and the European added value of each program can be found in the annex to this communication.The new Multiannual Financial Framework 2021-2027: A Modern Budget for a Union that Protects, Empowers and DefendsThe new Multiannual Financial Framework 2021-2027: A modern budget for a Union that protects, empowers and defendsI. SINGLE MARKET, INNOVATION & DIGITALI. SINGLE MARKET, INNOVATION AND DIGITAL1 Research & Innovation | · Horizon Europe | · Euratom Research & Training Program | International Thermonuclear Experimental Reactor (ITER) | 2 European Strategic Investments | · InvestEU Fund | Connecting Europe Facility | · Digital Europe Program (including Cybersecurity) | 3 Single Market | Single Market Program (including Competitiveness and Small and Medium-Sized Enterprises - COSME, Food Safety, Statistics, Competition and Administrative Cooperation) | · EU Anti-Fraud Program | · Cooperation in the Field of Taxation (FISCALIS) | · Cooperation in the Field of Customs (CUSTOMS) | 4 space | · European Space Program1. Research and innovation | · Horizon Europe | · Euratom Research and Training Program | · International Thermonuclear Experimental Reactor (ITER) | 2. European strategic investments | · "InvestEU" fund | · Connecting Europe Facility | · Digital Europe program (including cybersecurity) | 3. Internal market | · Single Market Program (including the competitiveness of businesses and small and medium-sized enterprises - COSME, food safety, statistics, competition and administrative cooperation) | · EU Anti-Fraud Program | · Cooperation in the field of taxation (FISCALIS) | · Customs cooperation (CUSTOMS) | 4. Space | · European space programII. COHESION & VALUESII. COHESION AND VALUES5 Regional Development & Cohesion | · European Regional Development Fund | · Cohesion Fund | · Support to the Turkish-Cypriot Community | 6 Economic & Monetary Union | Reform Support Program including the Reform Delivery Tool and the Convergence Facility | Protection of the Euro Against Counterfeiting | 7 Investing in People, Social Cohesion & Values ​​| · European Social Fund + (including Integration of Migrants and Health) | · Erasmus + | · European Solidarity Corps | · Justice, Rights & Values ​​| Creative Europe (including MEDIA)5. Regional development and cohesion | · European Regional Development Fund | · Cohesion Fund | · Support to the Turkish Cypriot community | 6. Economic and Monetary Union | · Reform Support Program including Reform Delivery Tool and Convergence Facility | · Protection of the euro against counterfeiting | 7. Investing in people, social cohesion and values ​​| · European Social Fund + (including integration of migrants and health) | · Erasmus + | · European Solidarity Corps | · Justice, rights and values ​​| Creative Europe (including MEDIA)III. NATURAL RESOURCES & ENVIRONMENTIII. NATURAL RESOURCES AND THE ENVIRONMENT8 Agriculture & Maritime Policy | · European Agricultural Guarantee Fund | · European Agricultural Fund for Rural Development | · European Maritime & Fisheries Fund | 9 Environment & Climate Action | Program for Environment & Climate Action (LIFE)8. Agriculture and Maritime Policy | · European Agricultural Guarantee Fund | · European Agricultural Fund for Rural Development | · European Maritime and Fisheries Fund | 9. Environment and climate policy | Environment and Climate Policy Program (LIFE)IV. MIGRATION & BORDER MANAGEMENTIV. MIGRATION AND BORDER MANAGEMENT10 Migration | · Asylum & Migration Fund | 11 Border Management | · Integrated Border Management Fund10. Migration | · Asylum and Migration Fund | 11. Measures at the external borders | · Integrated Border Management FundV. SECURITY & DEFENSEV. SECURITY AND DEFENSE12 Security | · Internal Security Fund | · Nuclear Decommissioning (Lithuania) | · Nuclear Safety and Decommissioning (including for Bulgaria and Slovakia) | 13 Defense | · European Defense Fund | · Connecting Europe Facility - Military Mobility | 14 Crisis Response | Union Civil Protection Mechanism (rescEU)12. Security | · Internal Security Fund | · Nuclear decommissioning (Lithuania) | · Nuclear safety and decommissioning of nuclear facilities (including Bulgaria and Slovakia) | 13. Defense | · European Defense Fund | · Connecting Europe Facility - Military Mobility | 14. Crisis Response | Union Civil Protection Mechanism (rescEU)VI. NEIGHBOURHOOD & THE WORLDVI. NEIGHBORHOOD AND WORLD15 External Action * | · Neighborhood, Development and International Cooperation Instrument (including external aspects of migration) | · Humanitarian Aid | · Common Foreign & Security Policy | · Overseas Countries & Territories (including Greenland) | 16 Pre-Accession Assistance | · Pre-Accession Assistance15. External action * | · Neighborhood, Development and International Cooperation Instrument (including external aspects of migration) | · Humanitarian Aid | · Common foreign and security policy | · Overseas countries and territories (including Greenland) | 16. Pre-accession assistance | · Pre-accession assistanceVII. EUROPEAN PUBLIC ADMINISTRATIONVII. EUROPEAN PUBLIC ADMINISTRATION17 European Public Administration | · Administrative Expenditure, Pensions and European Schools17. European public administration | · Administrative expenses, pensions and European schoolsINSTRUMENTS OUTSIDE THE MFF CEILINGSINSTRUMENTS OUTSIDE THE MFF CAPS· Emergency Aid Reserve | · EU Solidarity Fund | · European Globalization Adjustment Fund | · Flexibility Instrument | · European Investment Stabilization Function· Reserve for emergency aid | · EU Solidarity Fund | · European Globalization Adjustment Fund | · Flexibility instrument | · European investment stabilization function* The European Peace Facility is an off-budget fund outside the Financial Framework* The European Peace Facility is an extrabudgetary fund outside the financial framework.I. SINGLE MARKET, INNOVATION & DIGITALI. SINGLE MARKET, INNOVATION AND DIGITALInvesting in: | · Research and Innovation | · Key strategic infrastructure | · Strengthening the Single Market | · Strategic space projectsInvest in: | · Research and innovation | · Relevant strategic infrastructures | · Strengthening the internal market | · Strategic space projectsEurope's future prosperity depends on the investment decisions we take today. The EU budget has long been a vital source of investment across Europe. Stepping up investment now in areas such as research, strategic infrastructure, digital transformation and the single market will be key to unlocking future growth and tackling common challenges such as decarbonization and demographic change.Europe's future prosperity depends on the investment decisions we make today. The EU budget has long been an indispensable source of investment across Europe. Investing more now in research, strategic infrastructure, digitization and the internal market will be decisive for generating growth in the future and being able to master common challenges such as the switch to a lower-carbon economy and demographic change.The new European research program, Horizon Europe, will help Europe remain at the forefront of global research and innovation. As highlighted in the report of the High Level Group chaired by Pascal Lamy 11, investment in research will allow the Union to compete with other developed and emerging economies, ensure a prosperous future for its citizens, and preserve its unique social model. Building on the success of Horizon 2020, the new program will continue to promote research excellence and strengthen the focus on innovation, for instance through the development of prototypes, intangible assets, knowledge and technology transfer. A new European Innovation Council will provide a one-stop shop for high potential and disruptive innovators, aiming to make Europe a front runner in market-creating innovation.The new European research program Horizon Europe will help ensure that Europe remains the world leader in research and innovation. As highlighted in the report of the high-level group chaired by Pascal Lamy 11, investment in research will enable the Union to compete with other developed and emerging economies, secure the future prosperity of its citizens and maintain its unique social model.The new program builds on the successful Horizon 2020 program and continues to promote top-level research, with a greater focus on innovation, for example through the development of prototypes, the use of intangible assets and the transfer of knowledge and technology. A new European Innovation Council will be the central point of contact for promising and disruptive innovators so that Europe can lead the way in market-creating innovations.Building on the success of the European Fund for Strategic Investments in catalysing private investments throughout Europe, the Commission proposes to set up a new, fully integrated investment fund, InvestEU. In this way, a relatively limited amount of public resources can be used to mobilize significant private resources for much needed investments. With the European Investment Bank Group as the main implementing partner and other partners such as National Promotional Banks contributing to the delivery, InvestEU will anchor all centrally managed financial instruments inside the EU in a single, streamlined structure. This new approach will reduce overlaps, simplify access to funding and reduce administrative burden. With a contribution from the EU budget of EUR 15.2 billion 12, InvestEU is expected to mobilize more than EUR 650 billion of additional investment across Europe.Building on the success of the European Fund for Strategic Investments in mobilizing private investment across Europe, the Commission is proposing a new, fully integrated investment fund called InvestEU. In this way, with relatively limited public funds, considerable private funds can be obtained for urgently needed investments. With the European Investment Bank as the main implementation partner and other partners such as the national promotional banks, InvestEU will bring together all centrally managed financial instruments within the EU in a single, lean structure. This reduces duplication, simplifies access and cuts red tape. With a contribution of EUR 15.2 billion 12 from the EU budget, InvestEU should mobilize more than EUR 650 billion in additional investments across Europe.Cross-border infrastructure is the backbone of the single market, helping goods, services, businesses and citizens to move freely across borders. Through the reformed Connecting Europe Facility, the Union will continue to invest in trans-European transport, digital and energy networks. The future program will better exploit the synergies between transport, digital and energy infrastructure, for example through developing alternative fuels infrastructure or sustainable and smart grids underpinning the Digital Single Market and the Energy Union. Building on the successful approach of the current programming period, part of the Cohesion Fund allocation (EUR 11.3 billion) will be transferred to the Connecting Europe Facility for transport projects offering high European added value.The cross-border infrastructure forms the backbone of the internal market and ensures that goods, services, businesses and citizens can move freely across borders. Under the reformed Connecting Europe Facility, the Union will continue to invest in trans-European transport, digital and energy networks. The future program will make better use of the synergies between transport, energy and digital infrastructure, for example by developing the infrastructure for alternative fuels or sustainable and smart grids for the digital single market and the energy union. Based on the success of the current programming period, part of the Cohesion Fund resources (EUR 11.3 billion) will be transferred to the Connecting Europe Facility, where they will benefit transport projects with high European added value.In order to bridge the current digital investment gap, the Commission proposes to establish a new Digital Europe Program to shape and support the digital transformation of Europe’s society and economy. Technological change and digitization are changing our industries, societies, jobs and careers, as well as our education and welfare systems. By supporting strategic projects in frontline areas such as artificial intelligence, supercomputers, cybersecurity or industrial digitization, and investing in digital skills, the new programs will help to complete the digital single market, a key priority of the Union. The Commission proposes a combined increase of 64% in research, innovation and digital investment under direct management in the next Financial Framework. These investments will be complemented by research, innovation and digital projects supported by the European Structural and Investment Funds.In order to fill the current investment deficit in the digital sector, the Commission is proposing a new "Digital Europe" program, which aims to shape and promote the digitization of European society and the economy. Technological change and digitization are changing our industry, our society, our working world and our career paths as well as our educational and social systems. By supporting strategic projects in areas of the future such as artificial intelligence, supercomputers, cybersecurity or the digitalization of industry and investing in digital skills, the new program can help make the digital single market - a key priority of the European Union - a reality. The Commission proposes to invest a total of 64% more in research, innovation and digital through direct management in the next financial framework. These investments are to be supplemented by research, innovation and digitization projects that are funded within the framework of the European structural and investment funds.Investing in the futureInvest in the futureIn billion euros, current pricesBillion euros, in current pricesNote: Compared to the Multiannual Financial Framework 2014-2020 at EU-27 (estimate)N.B .: Compared to the Multiannual Financial Framework 2014-2020 for the EU-27 (estimate).Source: European CommissionSource: European Commission.A fully integrated space program will bring together all of our activities in this highly strategic field. This will provide a coherent framework for future investment, offering increased visibility and more flexibility. By improving efficiency, it will ultimately help roll out new space-driven services that will benefit all EU citizens. The EU budget will also continue to fund Europe’s contribution to the development of the International Thermonuclear Experimental Reactor (ITER) project to develop a viable source of safe and environmentally friendly energy for the future.A fully integrated space program will bring together all of our activities in this highly strategic area. This will create a coherent framework for future investments that will be more visible and flexible. Ultimately, by increasing efficiency, the program will enable the introduction of new space-based services that will benefit all EU citizens. The EU budget will continue to provide the European contribution to the development of the International Thermonuclear Experimental Reactor (ITER), which aims to develop a sustainable, safe and environmentally friendly energy source for the future.The Commission is also proposing a new, dedicated program to support the smooth running of the Single Market, Europe's best asset to generate growth in globalized markets, and contribute to the development of a Capital Markets Union. Building on the success of the current program for the Competitiveness of Enterprises and Small and Medium-sized Enterprises (COSME), the Commission proposes to strengthen the support given to small business - the engine of our economy - to scale up and expand across borders. The new program will help companies and consumers to better exploit the potential of the single market by putting in place information tools, developing standards, and supporting cooperation between administrations.In addition, the Commission is proposing a new program specifically designed to promote the smooth functioning of the internal market as Europe's main source of growth in a globalized world and to help develop a capital markets union. Continuing the success of the current Program for Competitiveness for Business and Small and Medium-Sized Enterprises (COSME), the Commission proposes to give more support to small businesses - as the engines of our economy - so that they can grow and expand across borders. The new program will help businesses and consumers to better exploit the opportunities of the single market by opening information channels, developing standards and helping administrations to work together.The Commission proposes to renew and reinforce the Customs program, so as to support the further digitization and modernization of the customs union, which celebrates its 50th anniversary this year. In parallel, the Fiscalis program will underpin deepened cooperation between tax administrations, including shared efforts to combat tax fraud and tax avoidance.The Commission proposes that the Customs program (“Customs”) be renewed and expanded in order to further advance the digitization and modernization of the Customs Union, which is celebrating its 50th anniversary this year. At the same time, the Fiscalis program aims to intensify cooperation between tax administrations, particularly in the joint fight against tax fraud and tax avoidance.II. COHESION & VALUESII. COHESION AND VALUESInvesting in: | · Regional development and cohesion | Completing the Economic and Monetary Union | · People, social cohesion and valuesInvest in: | · Regional development and cohesion | · Completion of Economic and Monetary Union | · People, social cohesion and valuesEconomic and social conditions across Europe are improving and employment is strong in many parts of the Union. However, the effects of the economic crisis are still being felt in some parts of Europe. Some regions have fallen further behind, partly due to the effects of globalization and the digital transformation. Significant disparities persist in the Union and societies face a range of new challenges. The EU budget plays a crucial role in contributing to sustainable growth and social cohesion, and in promoting common values ​​and a sense of belonging to the EU.