The European Commission proposed the euro budget for the period 2021-2027 to be bigger than the current Multiannual Financial Framework and to reach almost 1.2 billion euros, despite the expected budget hole due to Brexit.

Member States’ governments were called upon to increase their contributions and find new tools for generating pan-European revenues.

Presenting the long-awaited project, the President of the EC Jean-Claude Juncker said on Wednesday to the European Parliament that the new Multiannual Financial Framework is a “pragmatic plan for how with less to do more”.

Overall, the Commission proposes a long-term budget worth €1.135 billion in commitments (in 2018 prices) for the period from 2021 to 2027, equivalent to 1.11% of EU-27 gross national income (GNI).

Brussels insists that 27 member states spend 1.11 per cent of their national budgets to help fill the gap in the euro budget because of Brexit.

In order to finance new and urgent priorities, current funding levels will need to be increased. Investing now in areas such as research and innovation, young people, the digital economy, border management, security and defence will contribute to prosperity, sustainability and security in the future. For example, the Erasmus + programme and the European Solidarity Corps budgets will be double.

For the first time, the EC will set up a “rule of law” mechanism that binds the release of European funds only when European values are strictly followed. It is proposed to suspend, restrict or reduce EU funding for countries where there are problems with the rule of law. The aim is to minimize problems like those with the controversial laws in Poland and Hungary in recent months. At the same time, these countries insist on stronger efforts to protect the borders of the Union and to halt migratory pressures.