European Commission Proposes 200 billion Euros Budget for EU in 2025

Business


The European Commission (EC) on Wednesday proposed a European Union (EU) budget for 2025 estimated at approximately 200 billion euros ($215 billion), in addition to 72 billion euros from a Debt Financing Fund established in 2020 for economic recovery from the consequences of the Corona (COVID-19 pandemic) .

The largest share of the budget will be allocated to agricultural support, amounting to about 54 billion euros, while a share of 49 billion euros will be allocated to regional development in the poorest regions of Europe.

The 2025 budget represents the annual tranche of the European Union’s seven-year budget from 2021 to 2027, which was drawn up in 2020 but increased earlier this year.

The European Union budget (EU) sets maximum limits on what the EU can spend in various areas, and most of the revenues needed to cover spending consist of contributions from member states, based on the gross national income of each country, and part of the funding also comes from customs and other fees.

Normally, the Eur
opean Union (EU) is not allowed to borrow to finance the budget, but the countries of the bloc agreed, during the Covid-19 pandemic, exceptionally in 2020 to develop a separate recovery budget to finance debts called the Next Generation European Union (EU) programme.

According to estimates by the European Commission (EC), about 72 billion euros from the Next Generation European Union (EU program are scheduled to be spent in 2025.

Most of this amount will be spent on reform plans drawn up by member states, although part of it will cover items in the main European Union (EU) budget.

It is noteworthy that the member states of the European Union (EU) and the European Parliament (EP) must approve the draft 2025 budget.

Source: Qatar News Agency