The Commission has proposed an EU budget for 2021 of € 166.7 billion. The budget will be further complemented by grants of € 211 billion and loans from the EU's Next Generation instrument, a temporary recovery instrument aimed at mobilizing investment and boosting the European economy.
The annual budget and this instrument will mobilize significant investments to address the immediate economic damage caused by the coronavirus pandemic, trigger a sustainable recovery, and protect and create jobs. The budget is also fully in line with the commitment to invest in the future in order to achieve a greener, more digital and more resilient Europe. Following its adoption, this will be the first budget under the new multiannual financial framework for the period 2027-2021 and the first annual budget proposed by President von der Leyen's Commission.
Commissioner Johannes Hahn, who is in charge of the EU budget, said: In these extraordinary times, unprecedented support is being mobilized. The annual budget for 2021 will help hundreds of thousands of regions, people, businesses to overcome the crisis and become stronger than ever before. To achieve this, we need an agreement on a long-term budget and an EU Next Generation instrument that will be a symbol of trust for the whole of Europe.
Funding will help rebuild and modernize the Union by fostering green and digital transitions, creating jobs and strengthening Europe's role in the world. The draft budget for 2021 is based on the Commission's proposal for the next long-term EU budget as presented on 27 May 2020. Once the European Parliament and the Council have agreed on a long-term budget for 2021-2027, including the EU's Next Generation, The Commission will adapt the draft budget for 2021 accordingly.