By Richard Johnstone | 27 June 2013
The European Union has finally reached agreement on its next long-term budget. The €960bn deal includes an extra €2.1bn earmarked to tackle youth unemployment in both 2014 and 2015.
The seven-year budget, known as the Multiannual Financial Framework, has been delayed after the European Parliament rejected the proposal put forward the European Council, which represents EU government heads. It had proposed a budget that was 3.33% smaller in real terms than the current €994bn budget.
Today’s agreement, which covers 2014 to 2020, maintains the first ever real-terms cut in the union’s spending. However, it does meet the MEPs' requirement for more funding flexibility between years.
It contains ‘specific flexibility’ to tackle youth unemployment and boost research projects, with some money available to be ‘frontloaded’ over the next two years. As much as €2.5bn could be spent in both 2014 and 2015 to boost a host of schemes, which also include apprenticeships and support for small- and medium-sized enterprises.
Decisions to bring forward spending will be taken at the annual budgeting rounds. Any funds moved between years would need to be fully offset within other headings, in order to ensure the total spending ceilings for the period are met.
The deal has been signed as a summit of European national leaders gets under way. Talks are being held today and tomorrow to examine ‘tangible measures’ that can be taken to bring down unemployment across the bloc.
Leaders from the 27 EU member states are meeting in Brussels after European Council president Herman Van Rompuy called for them to examine measures to tackle joblessness. He told leaders that there was a need to speed up youth employment initiatives across the union.
The meeting also follows reforms to the union’s Common Agricultural Policy.
Among the changes to the controversial scheme, European institutions have agreed to introduce a new flat-rate payment from 2019. In addition, member states will have the option to apply a new ‘partial convergence model’ to coordinate any additional payments.
The agreement was welcomed by the Irish agriculture minister Simon Coveney, who led talks under the nation’s presidency of the union. ‘I am delighted that the Irish Presidency has been able to realise its objective of concluding the reform of the CAP during its presidency of the European Union. The agreement represents a hugely significant development in the history of the CAP.
‘For the first time, the three European institutions have come together to agree the framework for the development of the European agriculture sector, and they have delivered a policy that I believe secures the sustainable development of the sector up to 2020 and beyond.’
