EU budget: what's in for cities and how to get hold of the new funds

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With the political agreement reached at the Council level last 21 July, Member States agreed on an ambitious long term EU Budget of €1,824 bn. The budget is composed of €1,074 bn for the long term Multiannual Financial Framework 2021-2027 and €750 bn for a temporary recovery support – Next Generation EU - running from 2021 until 2023. The overall amount of the EU budget agreed by the Council has been slightly reduced by 3% compared to the proposal presented by the Commission in May. Noentheless, the Next Generation EU component of the EU budget, recognises the need to provide massive public and private investments to create jobs and stimulate economic recovery, whilst supporting the Union’s green and digital priorities.  


While funds for Cohesion and Agricultural policy remain unchanged, some of the centralised funding programmes that are vital to the resilience component of the recovery plan, including Horizon Europe, Just Transition Fund and Digital Europe, have been cut back. By contrast, the budget allocation for the Recovery and Resilience Facility, which will be directly managed by Member States, are increased from €560 bn to €672.5 bn (partly funding, partly loans). The EU Budget now needs approval by the European Parliament to enter into force in January 2021. 


You can find here the Council conclusions outlining the details of the agreement.


And please find below a table that you can download with the detailed breakdown of the programmes and related changes compared to the previous proposal.  


What can your city do to get hold of the new funds


Multiple entry points are available for cities, as Member States will face the pressure for a swift deployment of the recovery support and a rapid implementation of investment projects. To have these funds deployed, Member States will need to submit National Recovery and Resilience Plans that to be positively assessed will need to demonstrate an effective contribution to the green and digital transition, including a climate target for the budget of 30%. The European Commission will retain its central role in the assessment and coordination of National Recovery and Resilience Plans to be submitted by Member States in October.


In order to get hold of these new funds, cities must ensure they are full partners in the drafting of their Member State plans, which is why we strongly urge you to act now at national level to ensure that the investment plans and priorities for the coming years match the needs of your city. Below you will be able to find and download an infographic that we prepared to help you mobilise nationally. As the time is relatively short, we strongly advise you to act now: July is the new September!


The infographic should include enough information to start a dialogue with your relevant national authorities, but should you need any further clarification or support, do not hesitate to get in touch with us.




   EU_budget_comparisondownload/preview this file
    EU_Budget_Comparison_PDFdownload/preview this file
    2020_Budget_proposal_Infographicdownload/preview this file