EPRS Admin By / February 17, 2020

EU budget as a proportion of GNI and of total public expenditure

EU budget as a proportion of GNI and of total public expenditure

EU budget as a proportion of GNI and of total public expenditure

The European Commission indicates that the EU budget had increased steadily until the early 1990s, and then stagnated at around 1 % of gross national income (GNI). The current 2014-2020 MFF actually represented a reduction in real terms compared with the previous one, as it remained at 1 % GNI.
The Finnish Presidency proposal envisaged a budget of 1.07 % of the EU’s GNI for 2021-2027, which is significantly lower than the proposal of the European Commission (1.114 %) and Parliament’s position (1.3 %). While the European Commission proposed a commitments ceiling for the 2021-2027 MFF at 1.11 % GNI, the European Parliament reiterated in its resolutions of 14 November 2018 and 10 October 2019 that ‘the level [of commitments…] should be set at €1 324.1 billion in 2018 prices, representing 1.3 % of the EU-27 GNI’. Most Member States which have disclosed information, indicate preferences between 1.0 % and 1.11 % of GNI. Charles Michel’s revised negotiating box, proposes a budget equivalent to 1.074 % of the EU-27 GNI, a figure that is very close to the Finnish proposal.


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