On Wednesday, 2 May 2018, the European Commission published a proposal for the multi-annual financial framework 2021-2027. The proposal is supposed to take into account Europe's new role in providing security and stability in the world and the future budget gap after Brexit.
Against this background the European Commission presented a budget proposal that provides fresh money for the EU's political priorities post 2020 that aim at a Europe that protects, empowers and defends. But at the same time, the proposal stipulates cuts in the financing for the Common Agricultural Policy and Cohesion Policy. In both policy areas, the EC proposal suggests a 5% cut of expendtures. These cuts shall be accompanied by a modernisation of the policy areas in order to ensure high impact with less ressources.
The European Commission projects with an overall long-term budget of EUR 1,135 billion in commitments (expressed in 2018 prices) over the period from 2021 to 2027, equivalent to 1.11% of the EU27's gross national income (GNI). This level of commitments translates into EUR 1,105 billion (or 1.08% of GNI) in payments (in 2018 prices). This includes the integration into the EU budget of the European Development Fund – the EU's main tool for financing development cooperation with countries in Africa, the Caribbean and Pacific and which to date is an intergovernmental agreement. Taking into account inflation, this is comparable to the size of the current 2014-2020 budget (including the European Development Fund).