Evolution of the EU Budget via Digitalisation and Greening Priorities

Creative Commons License

Genç Şahin Ö., Arslan Olcay S. C.

in: Current Debates on Public Finance Theory and Practice, M. Erkan Üyümez,Canatay Hacıköylü, Editor, Peter Lang, Berlin, pp.101-114, 2023

  • Publication Type: Book Chapter / Chapter Vocational Book
  • Publication Date: 2023
  • Publisher: Peter Lang
  • City: Berlin
  • Page Numbers: pp.101-114
  • Editors: M. Erkan Üyümez,Canatay Hacıköylü, Editor
  • Ankara University Affiliated: Yes


Abstract: Budgeting process in the European Union is based on multi year financial programmes called multiannual financial framework. The current multiannual financial framework of 2021-2027 has some unique features. Firstly, it has brought a new own resource based on non recycled plastic packaging waste. Additionally, Next Generation EU established to combat effects of COVID 19 entered into force as a complementary to the 2021-2027 Multiannual Financial Framework. Recovery and Resilience component of Next Generation EU has the capacity to offer 338 billion Euros as grants and 385.8  billion Euros as loans. This vast amount is anticipated to be financed through the loan mechanism entailing risk sharing and responsibility among member states. Repayment of debt thus requires creating new resources. 2021-2027 Multiannual Financial Framework has determined priority areas such as digitalisation, protection of environment, cohesion, migration and border control, security and defence. In the light of the future prospects, digitalisation and greening priorities have been emphasized. Almost half of the budget has been allocated to those areas. In this context, 20 % of resources are planned to be spent to achieve objective of digitalisation. In the framework of this study, 2021-2027 Multiannual Financial Framework and Next Generation EU have been analysed in terms of the changes brought about in the process and future prospects of the Union.    

Key Words: 2021-2027 Multiannual Financial Framework, Next Generation EU, digitalisation, greening, European Union budget