Draft annual EU budget 2022 - Questions and answers

Draft annual EU budget 2022 - Questions and answers

09.06.2021: 1. What are the priorities of the draft budget for 2022? The EU budget is the centrepiece of the Union's recovery efforts, aiming to get Europe back on track following the COVID-19 pandemic and its consequences.


1.  What are the priorities of the draft budget for 2022?

The EU budget is the centrepiece of the Union's recovery efforts, aiming to get Europe back on track following the COVID-19 pandemic and its consequences.

The budget for 2022 aims to boost the recovery from the coronavirus pandemic, to put Europe on the path towards a sustainable future, to protect and create jobs. This means tangible support for people in need, companies and hard-hit sectors, reinforcement of the single market and assistance for regions and Member States.

The combined EU budget 2022 and NextGenerationEU will make available €311 billion in funding to help rebuild and modernise our continent, fostering the green and digital transitions, and making sure we create a stronger and more resilient Europe, which plays a strong role in the world.

In parallel, the EU budget will continue to support Europe's political priorities, whose contribution to a sustainable recovery is more relevant than ever. The Commission remains committed to the six headline ambitions set out by President von der Leyen: the European Green Deal; a Europe fit for the digital age; an economy that works for all; promoting our European way of life; a stronger Europe in the world and a new push for democracy. The budget for 2022 will enable the Commission to deliver on these priorities.

2.  How does the draft budget for 2022 relate to NextGenerationEU?

NextGenerationEU will give the EU budget the additional firepower necessary to respond decisively to the urgent challenges caused by coronavirus pandemic. It is being put in place for a temporary period to be used for crisis response and recovery measures.

The funds it will generate will be channelled through the EU budget to support investment and reform priorities, and will reinforce programmes that are key to the recovery. It will also fund actions to build resilience for the future, for example, through an enhanced RescEU as part of the EU Civil Protection Mechanism.

To finance NextGenerationEU, the Commission will borrow up to €807 billion on the capital markets. To obtain the necessary funding under optimal financial terms, the Commission will be using a diversified funding strategy. The funds will be disbursed via grants or loans, either through the Recovery and Resilience Facility or through several EU budget programmes which receive top-ups from NextGenerationEU.

3.  What are commitments and payments?

Commitments are the total volume of contractual obligations for future payments that can be made in a given year. Commitments must then be honoured with payments, either in the same year or, particularly in the case of multi-annual projects, over the following years.

Payments are the actual money paid in a given year from the EU budget to cover commitments of current and previous years.

For instance, when the EU decides to co-fund the building of a bridge, the total amount which the EU agrees to cover is a commitment. The bills for the work done are the payments that are paid over the coming years in line with the implementation life cycle of the project.

The commitment is made in year N. The payments from the EU budget may follow in the same year N, but also in year N+1, N+2, N+3, etc., depending on when the invoices are reimbursed.

4.  What is an external assigned revenue?

The EU budget is governed by the principle of universality. This means that there is no direct link between the source of the revenue collected (for instance the VAT or the GNI resources) and the expenditure that it finances.

There is an exception to this rule and this is the assigned revenue, meaning specific revenue, which is collected to finance specific expenditure.

The types of existing external and internal assigned revenue are listed in Article 21 of the Financial Regulation – the rules governing how the EU budget is spent.

5.  When will the funds under NextGenerationEU become available?

The Commission has announced it plans to start borrowing to finance the recovery under NextGenerationEU in June.

Based on preliminary estimates, the Commission intends to issue around €80 billion of long-term bonds in 2021, to be topped up by tens of billions of euro of short-term EU-Bills to cover the remaining financing requirements.

The exact amount of both EU-Bonds and EU-Bills will depend on the precise funding needs, and the Commission will revise its initial assessment in the autumn.

With its approach, the Commission will be able to fund, over the second half of the year, all planned grants and loans to Member States under the Recovery and Resilience Facility, as well as cover the needs of the EU policies that receive NextGenerationEU funding.

6.  What happens next?

Following adoption by the College, the European Commission submits the draft 2022 EU budget to the European Parliament and the Council, which take the final decision together.

The Council usually adopts its opinion on the budget by the end of July, and the European Parliaments announces its official position in the autumn.

A specific Conciliation Committee is convened, usually in late autumn, to reconcile the positions of the Parliament and the Council. It has to agree within 21 days on a common budget, which both institutions should afterwards approve. This year, the period runs between 26 October and 15 November.


Press remarks by Commissioner Hahn on the draft annual EU budget for 2022 and on EU budget performance reporting

Ladies and Gentlemen,

Just a moment ago, the College adopted the draft budget for 2022 as well as Annual Management and Performance Report of 2020 and I have the honour to immediately present it to you.

It is important to keep in mind where we are.

The COVID-19 pandemic has disrupted our lives and has overturned all previous assumptions about economic activity and public spending.

But today, we can see the light at the end of the tunnel. The vaccination campaign has given people new hope. Europe's societies are gradually reopening, and the economy is doing better. One of the results from this is that we are here today after 1.5 years.

We are however not out of the woods yet: the Union's continued response to the crisis and the recovery remain essential.

We must also implement the necessary measures for the twin crucial challenges for the Union: the digital and green transition.

Additionally, in an uncertain world, the Union must maintain its focus on international cooperation, security and defence in line with its values, and play an increasing role externally.

All these priorities are clearly reflected in our draft budget.

The draft budget for 2022 is fully aligned with the multiannual financial framework agreement, which provides a stable framework for economic and social recovery and digital and green transition.

The combined strength of the long-term budget and NextGenerationEU amounts to an unprecedented EUR 2 trillion in current prices over the 2021-2027 period.

Let me now provide you with some – I would say – rather impressive figures for 2022.

A total of EUR 311 billion in commitments would be available in 2022 to provide financing of the EU priorities and policies.

The EU budget would contribute with EUR 167.8 billion in commitment appropriations (this is an increase of 2.2% compared to 2021 without the impact of the Brexit Adjustment Reserve in draft amending budget 1/2021), whereas NextGenerationEU would allow to make commitments of about EUR 143.5 billion in grants.

The proposed level of payments of EUR 169.4 billion is exactly an increase of 2% compared to this year and is adequate to cover our budgetary needs both for the payment of the outstanding commitments and for the new programmes.

Together with the EUR 78 billion of expected NGEU payments – corresponding to the annual amount of borrowing, almost EUR 250 billion will be available to boost the recovery of the EU economy in 2022.

To generate the funding for NextGenerationEU, the Commission will start borrowing as early as June 2021 in a couple of days, using a mix of long-term bonds and short-term EU-Bills.

The first bond issuance will be organised with the institutions included in its Primary Dealer Network as announced almost a week ago last Monday. Two more transactions are foreseen to take place before the start of the summer.

This is now the start of the NGEU implementation phase, which we have prepared.

Before I conclude, let me turn to our performance and policy mainstreaming.

In 2014-2020, the Union invested EUR 216 billion in reaching the climate objectives, exceeding the overall target by 20.15%. We can all be proud of this result!

In the 2021-2027 MFF, we are reinforcing the mainstreaming approach. All basic acts include a recital on climate and biodiversity. Major programmes include specific targets for their indicative contribution, to allow us to reach the 30% target for the budget and NextGenerationEU over the entire programming period.

Notably, the Recovery and Resilience Facility has targets for the percentage of expenditure that should go towards the twin green (37%) and digital (20%) transition.

The Commission intends to fund 30% of NGEU through green bonds issuance. This could amount to up to EUR 250 billion, establishing the EU as one of the largest issuers of green bonds globally. Actually this will lead to doubling of green bonds across the globe, as a result of the Commission taking this approach.

We have also come forward today with a communication about the performance framework for 2021-2027, as well as with the Annual Management and Performance Report.  

The Commission will continue to put performance front and centre in the Union's budget. Today's Communication on the performance framework for this MFF shows that a sound framework to assess how the EU budget contributes to the EU's political objectives, is crucial to ensure effective and coherent policy action.

The Annual Management and Performance Report 2020 sets out how EU funding has been used in 2020, including for the COVID-19 response. Also here I refer to all the figures being laid down in the press release. The report demonstrates the substantial contribution of the EU Budget 2020 to alleviate the damaging impact of the COVID pandemics.

To conclude, the draft budget 2022 is an ambitious proposal respecting fully the MFF agreement. Together with NextGenerationEU, it provides a huge boost to the European economy, promotes green and digital transition, and also helps our neighbours and partner countries. Because we are toegether in the fight against the pandemic and future challenges to come.

Finally, I would say we are in a far more comfortable situation compared to last year when we were still negotiating the MFF and did not have the Own Resources Decision in place. This is all now in place and we will start rolling out all our instruments to become more resilient. Budget 2022 reflects all this.

We have come a long way in the past year. Let's now provide the necessary support to speed up Europe's recovery.

    Balazs UJVARI, Claire JOAWN

Permanent-URL: http://www.automobilsport.com/annual-eu-budget-2022-questions-answers---224634.html

09.06.2021 / MaP

More News

FLA - Consumer car finance market boost in April as showrooms re-open
New figures released today by the Finance & Leasing Association (FLA) show that the consumer car finance market reported growth in new business volumes of 1276% in April 2021 compared with the same month in 2020. In the first four months of 2021, new business volumes were 13% higher than in the same period in 2020. more >>
American Honda Sets All-time Monthly Sales Record in May
    American Honda set an all-time sales record for any month on sales of 176,815 in May       Honda brand light trucks set new all-time monthly sales record, helping the brand to record May s more >>
Kia announces May 2021 global sales
    May global sales at 245,994 units, up 49.2% y/y    Sales in Korea at 47,901 units, down 6.4% y/y    Sales outside of Korea jumped to 198,093 units, up 74.2% y/y    Kia to create sales momentum through new models, including the Kia EV6 battery electric vehicle and all-new Sportag more >>
Roland Villinger appointed new Head of Corporate and Product Strategy at SKODA AUTO
- Roland Villinger will have responsibility for the newly created area of ‘Corporate and Product Strategy’ at ŠKODA AUTO as of 1 June 2021   - ‘Corporate Development and Digitalisation’ and &lsqu more >>
Mitsubishi Motors Announces Production, Sales and Export Figures for April 2021
April 2021     Fiscal Year 2020 (21/04-21/04)     Calendar Year 2021 (21/01-21/04) Volume(unit)     YoY(%)     Volume(unit)     YoY(%)     Volume(unit)     YoY(%) more >>
Dometic acquires Front Runner Vehicle Outfitters
On May 20, 2021, Dometic entered into an agreement to acquire Front Runner Vehicle Outfitters – a global provider of high-qualitive products for the outdoor market headquartered in South Africa.SUMMARY   • This more >>
Hagerty compares the depreciation of modern supercars
    Hagerty studies the depreciation curve of modern supercars from Ferrari, Aston Martin, and Porsche    Analysts found that high-profile launches, with cars selling for over list, may damage residual values in the short-term    Italian supercars depreciate less than their British counterparts, with more >>
BMW Ad-hoc announcement: Partial release of the provision with respect to EU antitrust proceedings
Based on the progress of the proceedings, BMW AG expects, compared with the statement of objections of 5 April 2019, that the EU Commission will significantly reduce its allegations against BMW AG in terms of content and duration. The subject matt more >>
UNCTAD - Global trade's recovery from Covid-19 crisis hits record high
•    Global trade’s recovery from the COVID-19 crisis hit a record high in the first quarter of 2021, increasing by 10% year-over-year and 4% quarter-over-quarter, according to UNCTAD’s Global Trade Update released on 19 May.FULL Trade update more >>
Lexus achieves cumulative global sales of two million electrified vehicles
    19 million tons cumulative reduction in CO2 emissions since 2005    Lexus’ first plug-in hybrid model to be launched in 2021, followed by a completely new, dedicated all-electric model in 2022    More than 10 electrified models to be launched by 2025    Carbon neut more >>
Mazda closes fiscal year with positive profit
    Strong recovery in the second half of the fiscal year brought in positive profit    Positive outlook on sales and profits despite challenging market environmentThe Mazda Motor Corporation today announced more >>
Mazda Motor Europe announces Martijn ten Brink as its new President & CEO
Mazda Motor Europe (MME) has announced that effective 24th June 2021, Martijn ten Brink, currently Vice President of Sales & Customer Service at MME, will become President & CEO of MME succeeding Yasuhiro Aoyama who has led the European business since 2019. more >>
Volta Trucks strengthens its Executive Management Team with strategic appointments
    John Burrows appointed as Chief Financial Officer.    Casper Norden joins Volta Trucks as Chief Strategy Officer.    Mornie Robertson hired as Chief Human Resources Officer.V more >>
Goodyear announces pricing of $1.45 billion of senior notes in connection with planned Cooper Tire acquisition
The Goodyear Tire & Rubber Company today announced that it has priced its private offering to eligible purchasers of $850 million aggregate principal amount of senior notes due 2029 (the “2029 notes”) and $600 million aggregate principal amount of senior notes due 2031 (the “2031 notes,” and together with the 2029 notes, the “notes”). The notes wi more >>
Toyota Announces Global Annual Results and Reconfirms Commitment To Carbon Neutrality
    Global vehicle sales of 7.646m units, down by 1.309m units    Global net revenue of 27,214.5 bn yen (219.5 bn EUR), down by 2,651.9 bn yen    Global net income of 2,245.2 bn yen (18.1 bn EUR), up from 2,036.1 bn yen    Toyota Motor Corporation reconfirms commitment more >>
Nissan contributes - Ä 73 million for first quarter 2021 to Renaultís earnings
  Nissan released  its results for the fourth quarter of fiscal year 2020/2021 (April 1st, 2020 to March 31st, 2021).Nissan’s results, published in Japanese accounting standards, for the fourth quarter of fiscal year 2020/2021 ( more >>
Gordon Murray Group announces major expansion plans and investment for future growth
    Gordon Murray Group announces roadmap for future expansion through a £300M investment in Gordon Murray Design, Gordon Murray Automotive, R&D and talent       New division Gordon Murray Electronic more >>
Turbulent first quarter for UK used car market as sales fall -8.9%
SMMT USED CAR SALES (data for Q1 2021)    UK used car transactions fall -8.9% in Q1 2021 with 1,687,755 transactions.    Monthly performances impacted by lockdowns, but March up on particularly weak 2020.    Market for used plug-in vehicles stays strong with a 37.9% rise in Q1 transactions. more >>
Brembo financial results for the first quarter of 2021
RECORD Q1 REVENUES, UP 17.2% TO €675.1 MILLION (+20.9% ON A LIKE-FOR-LIKE EXCHANGE RATE BASIS). EBITDA AT €135.6 MILLION (EBITDA MARGIN: 20.1%),  NET PROFIT AT €61.4 MILLION Compared to Q1 2020: •    Revenues at €675.1 million (+17.2% or +20.9% on a like-for-like exchange rate basis); +1.2% compared to Q1 2 more >>
Audiís momentum was strong in the first quarter of 2021
   Sales revenue €14.1 billion, operating profit €1.4 billion, operating return on sales 10.0 percent, profits before tax €1.7 billion        Strong performance partly thanks to special items: net cash flow €3.1 billion        First quarter of 2021 was characterized more >>
BMW Group First quarter: Transformation accelerated, core business significantly strengthened
Zipse: "BMW Group highly profitable and sustainable" - Deliveries of electrified vehicles more than doubled - Free cash flow of € 2.5 billion in first quarter - Sustainable mobility needs more than just an e-drive - Earnings booste more >>
Successful start to the new fiscal year for Volkswagen
Brand doubles its Q1 2021 operating profit year-on-year to EUR 900 million  Positive outlook for full year 2021– margin target of 6 percent in 2023 confirmed  Strong recovery in the Chinese market as well as North and South America  Sales of all-electric vehicles almost doubled and those of plug-in hybrids more t more >>
Volvo Carsí global sales up by 97.5 per cent in April
Volvo Cars achieved its 10th consecutive month of sales growth, as the company’s global sales increased by 97.5 per cent in April compared with the same month last year.I more >>
The Porsche 911 GT3 RS MR laps the 20.832-kilometre-long Nürburgring Nordschleife in 6:54.340 minutes
  On Friday 23 April 2021, the 383 kW (520 hp) Porsche 911 GT3 RS MR from the 991.2 generation lapped the 20.832-kilometre-long Nordschleife in the presence of a notary in 6:54.340 minutes.   The measured time for the 20.6-kilometre-lon more >>
Honda and Acura Light Trucks Drive Continued American Honda Sales Momentum Setting Multiple Records in April
    American Honda light trucks, and Honda brand light trucks, each set new all-time sales records    Honda cars and trucks combine for best April sales in brand history     HR-V more >>
Goodyear reports first quarter 2021 results
– First quarter Goodyear net income of $12 million; adjusted net income of $102 million– First quarter segment operating income of $226 million, strongest first quarter since 2018– Global consumer replacement volume significantly exceeded industry, driven by large-rim diameter segment- Record first quarter consumer more >>
Stellantis ranks first in global European sales in Q1 2021
Stellantis takes the top spot among automakers with a market share of 23.6% in Q1 2021 in the Passenger Cars and Light Commercial Vehicles perimeter.In a context of moderate growth of the European market at 3.8%, the results achieved by Stellantis more >>
UK engine production rises 31.7% in March
UK ENGINE MANUFACTURING    March UK engine production rises 31.7% in 2021, compared with Covid-hit month a year ago.    Output for domestic and overseas markets increases 50.4% and 19.9% respectively.    Performance in first quarter still down -11.1%, with 534,793 engines manufactured.   more >>
Mitsubishi Motors Announces Production, Sales and Export Figures for March 2021 and 2020 Fiscal Year
  March 2021     Fiscal Year 2020 (20/04-21/03)     Calendar Year 2021 (21/01-21/03) Volume     YoY(%) more >>
$146.12m could be lost from an entire season without fans in MotoGP, says GlobalData
With a number of Grand Prix for the 2021 season having already announced plans to forgo attendances, the cost of an entire season without fans across the 22 races in MotoGP would see the competition lose out on nine-figure sums, says GlobalData, a leading data and analytics company. more >>
Daimler Truck AG makes significant management and organizational changes in preparation for an independent future
    Daimler Truck AG is making significant changes to its management structure ahead of the spin-off and separate listing planned for late 2021    Daimler Truck AG reaffirms strategic goals: Improving profitability and leading role in the transformation of the commercial vehicle business    The reorga more >>
HRT continues to grow in strenght - Ulrich Fritz named new CEO
Having expanded its racing programme for the 2021 season, the Haupt Racing Team continues to grow structurally too: the team founded last year by businessman and racing driver Hubert Haupt welcomes on board Ulrich Fritz, who takes over the management of Haupt Racing Team GmbH. more >>
Kia announces 2021 first-quarter business results
    1Q revenue at KRW 16.58 trillion, up 13.8% y/y    1Q global wholesales volume at 689,990 units, 6.4% increase from 648,685 units in the previous year    1Q operating profit soared 142.2% y/y to KRW 1.08 trillion; Quarterly operating profit margin of 6.5%    1Q net more >>
Tesla delivered a record 185K vehicles in Q1 2021
Tesla delivered and produced a record number of vehicles in the first quarter of 2021. According to data presented by Tradingplatforms.com, Tesla delivered an estimated 184,800 vehicles in Q1 2021.Tesla Sets Company Records for Deliveries and Production in Q1 2021On the back more >>
Preliminary Key Financial Performance Figures of BMW AG for the first quarter 2021 exceed market expectations
Ad-hoc announcement   BMW AG reports sales growth in all significant regions of the world, in particular in China, and all brands in the first quarter of 2021. In addition, positive price and mix effects, as well as high demand for pre-owned cars, also lea more >>
Kia registers slight Q1 growth and increased sales of electrified vehicles
    Kia’s European market share holds stable at 3.7 per cent in the first quarter    Kia Q1 registrations across Europe (EU, EFTA and UK) increase nearly one per cent year-on-year    Sales of Kia’s electrified vehicles (EV, plug-in hybrid and hybrid) continue to grow despite widespread showroom more >>
FLA: Super Deduction will not ensure growth in its current form
The Finance & Leasing Association (FLA) and the British Vehicle Rental and Leasing Association (BVRLA) have asked the Government to amend the Super Deduction initiative to boost investment in plant and machinery by extending it to include l more >>
Polestar raises USD550m from new investors; further fund raising considered
Polestar, the Swedish electric performance car company, has raised USD550m from a group of long-term financial investors.The private placement of newly issued shares marks the first time external investors have backed Polestar’s products, brand, more >>
Toyota Motor Europe market share climbs to a record high of 6.6% in first quarter
    TME sales remain on a growth path with 287,678 vehicles sold between January- March 2021, up +6% year-on-year    The company’s overall European hybrid mix is now at a record high of 56%    Toyota brand climbs to 2nd spot for best-selling passenger car brands in Europe    Lexus more >>
2001-2023 copyright automobilsport.com