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The truth behind the €64.6-billion budget deal agreed by EU leaders

Published

11 months ago

February 3, 2024

The truth behind the €64.6-billion budget deal agreed by EU leaders

The European Union might soon add an additional €64.5 billion to its common budget. But it comes with fine print.

The top-up was for months the object of fierce bargaining among member states, each of whom, mindful of the upcoming elections to the European Parliament, pushed hard to see their wish list come true.

The negotiations kicked off in June, soon after the European Commission unveiled its proposal, and culminated in an extraordinary summit on 1 February, where Viktor Orbán, under tremendous pressure from his fellow leaders, lifted his monthlong veto.

“We had certainly some difficult choices to make, but we had a very good result,” European Commission President Ursula von der Leyen said after the meeting.

Once the gridlock broke, a new figure emerged: the bloc’s budget for 2021-2027, worth €2,018 billion in current prices (including €806.9 billion for the COVID-19 recovery fund), will be given an additional €64.6 billion until the remainder of the period.

The political deal is a considerable downgrade from the €98.8 billion top-up originally envisioned by the Commission. The executive argued the public coffers had been exhausted by the economic shockwaves of the pandemic, Russia’s invasion of Ukraine, the energy crisis, record-breaking inflation and devastating natural disasters, leaving the budget deprived of financial flexibility to react to unforeseen events.

But from the very onset, the €98.8-billion draft was met with strong resistance from member states, who would have been compelled to provide more than €65 billion in brand-new contributions. Rising interest rates, sluggish growth and diminishing revenues made the idea of writing such a cheque to Brussels all the more intolerable.

Diplomats haggled hard over how to cut down the fresh money to the bare minimum, playing a game of mix-and-match to plug the gaps.

So what’s new and what’s old in the budget top-up? Let’s break down the numbers.

Ukraine Facility: €50 billion

Boosting aid for Ukraine is the raison d’être of the revised budget. In fact, it was the only envelope that leaders left intact.

Under the agreement, the EU will establish the Ukraine Facility to provide the war-torn nation with €50 billion between 2024 and 2027 to keep its economy afloat and sustain essential services, such as healthcare, education and social protection.

The pot will combine €17 billion in non-repayable grants and €33 billion in low-interest loans, meaning member states will only subsidise the former. The money for the loans will be borrowed by the Commission on the markets and later repaid by Ukraine.

Brussels will roll out the Facility in gradual payments to guarantee reliable and predictable financing. In return, Kyiv will be asked to carry out structural reforms and investments to improve public administration, good governance, the rule of law and the fight against corruption and fraud – all of which can help the country advance its EU membership bid.

In a small concession to Viktor Orbán, the only leader who opposed the Ukraine aid, leaders will hold a debate every year to assess the Facility’s implementation, but this high-level discussion will not be subject to a vote (or possible veto). “If needed,” the deal says, leaders might invite the Commission to review the package in two years.

If the co-legislators agree swiftly on the regulation that underpins the Facility, Brussels will send Kyiv the first tranche in early March.

Migration management: €9.6 billion

This envelope survived the negotiations almost unscathed and it’s easy to see why: migration management is a key priority shared by all countries, particularly those in Southern Europe who bear the brunt of irregular arrivals.

The Commission originally asked for €12.5 billion to cover expenses on border control, relations with the Western Balkans, and the hosting of millions of Syrian refugees in Turkey, Syria, Jordan and Lebanon. The executive said the extra money was needed to realise the ambitions of the New Pact on Migration and Asylum, the holistic reform of the bloc’s migration policy that is nearing the finish line.

Leaders mostly agreed and granted €9.6 billion. “Migration is a European challenge that requires a European response,” they said in the deal.

New technologies: €1.5 billion

The EU is intent on being a leading player in the cutthroat race for cutting-edge technologies. For that, it needs money – a lot of money.

The Commission – fulfilling a grand promise made by President Ursula von der Leyen – designed the Strategic Technologies for Europe Platform (STEP) to finance avant-garde projects and promote EU-made high-tech. STEP was designed to help all member states, from the richest to the poorest, access much-needed liquidity in equal conditions.

Von der Leyen initially asked €10 billion for STEP to reinforce ongoing programmes like InvestEU and the Innovation Fund. But leaders shot down the idea and allocated only a meagre fraction: €1.5 billion to prop up the European Defence Fund (EDF).

Unforeseen crises: €3.5 billion

Since the early days of 2020, the bloc has been engulfed in back-to-back crises. From a lethal airborne disease to floods and fires that wrought untold havoc, Brussels has had a hard time adapting its tight budget to a ballooning list of expenses.

In its original proposal, the Commission requested €2.5 billion to bolster the Solidarity and Emergency Aid Reserve, which is triggered to deal with major natural disasters, and €3 billion for the Flexibility Instrument, which, as its name suggests, can be used to respond to any sort of critical situation.

Despite the worsening effects of climate change and a strong diplomatic push from Greece, a country badly hit by wildfires, leaders did not go all the way: their deal earmarks €1.5 billion for emergency aid and €2 billion for the Flexibility Instrument.

Interest payments: zero

As a result of the aforementioned crises, the EU had to press the pedal to the metal on its joint borrowing, most notably to build the COVID-19 recovery fund.

The €800-billion plan, which will be rolled out until 2026, comes with a considerable bill of interest payments, which drastically swelled as inflation hit double digits and the European Central Bank retaliated with consecutive rate hikes.

Facing a lofty invoice, the Commission pleaded with member states to add €18.9 billion to the budget review, an amount that immediately raised eyebrows. (The figure to cover overrun costs is variable and is now estimated at €15 billion.)

In the end, leaders opted for a three-step “cascade mechanism.” First, money will come from the existing provisions within the recovery fund. If this is not enough, Brussels will draw funds from programmes that are underperforming and the Flexibility Instrument. If this is still not enough, the third step will kick in and create an instrument financed by “de-commitments,” financial envelopes that were unspent or cancelled.

Only when all of this has failed will the cascade hit leaders as the Commission will be entitled to ask member states to provide direct contributions.

Redeployments: €10.6 billion

All the numbers listed above make a total of €64.6 billion but there’s a catch: countries will only cough up €21 billion. How is it possible?

Besides the €33 billion in loans from Ukraine, which involves the Commission and Kyiv, member states decided to shift €10.6 billion from ongoing EU initiatives: €4.6 billion from Global Europe, €2.1 billion from Horizon Europe, €1.3 billion from assistance to displaced workers, €1.1 billion from agriculture and cohesion funds, €1 billion from EU4Health and €0.6 from a special reserve to cushion Brexit disruption.

Speaking on condition of anonymity, a senior Commission official said the overnight cuts to Horizon Europe, the bloc’s flagship research programme, and EU4Health were unfortunate and “difficult to swallow.”

“At this point in time, it’s impossible for us to really tell you what this will mean in practice,” the official said about the potential effects of the €10.6-billion redeployment push.

In the case of EU4Health, the chop represents about 27% of the money left in the envelope, established less than four years ago in response to the pandemic. The demanded changes to both Horizon and EU4Health are likely to enrage the European Parliament, which needs to co-approve the budget review.

“This is something that is not easy,” the senior official added. But “we will religiously follow what the legislators decide.”

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World

Consejos para disfrutar de las celebraciones de fin de año, sin estrés

Published

8 hours ago

December 25, 2024

Press Room

Consejos para disfrutar de las celebraciones de fin de año, sin estrés

NUEVA YORK (AP) — Todos conocemos los factores de estrés: obligaciones sociales, rencillas familiares, divisiones políticas, estrés financiero y el deseo de mantenerse alegre y generoso todo el tiempo.

Así que aquí va un recordatorio sobre cómo desterrar a tu perfeccionista interior y disfrutar verdaderamente de la temporada festiva:

“Realmente ayuda dejar de lado algunos de los ‘deberías’”, dice Lynn F. Bufka, jefa de práctica de la Asociación Estadounidense de Psicología. “Decide cuál es la cosa que más importa, y las cosas que te brindan más alegría, y suelta las demás”.

Las tradiciones pueden cambiar y evolucionar, y cuanto más flexibles sean las cosas, más fácil será para todos, dice Bufka.

“Concentra tu energía en crear un espacio cálido para que las personas que amas se reúnan y relajen, se pongan al día y celebren unos a otros. Eso es literalmente todo lo que importa”, concuerda Lauren Iannotti, editora en jefe de Real Simple.

Algunos consejos:

Concéntrate en lo que te hace feliz

Podrías decidir que la conversación es tu objetivo principal y no preocuparte en absoluto por la decoración, dice Bufka. O si la decoración de la mesa es lo que amas, invierte tu energía allí y no te preocupes tanto por otros aspectos.

“Idealmente, debería tratarse de enfocarse en el amor, y eso no significa lo mismo para todos”, dice Bufka.

Permite que otros hagan las cosas por ti.

“La gente quiere ayudar, ¡déjalos!”, dice Iannotti. “Si no te ENCANTA cocinar todas esas guarniciones, o tienes poco tiempo, no hay ninguna vergüenza en aceptar que tu hermana haga el relleno. O busca ayuda de los profesionales: apoya a un restaurante local haciendo un pedido de catering”.

Otra opción es que “cada uno traiga un plato distintivo”, dice Ianotti. “Ahorrarás tiempo y dinero en la preparación y la cocina y tus invitados podrán mostrar sus habilidades”.

Darte permiso para tomar atajos

“Está bien si la casa está un poco desordenada o si la cena se sirve unos minutos tarde”, dice Iannotti. “Si las personas que has invitado están más interesadas en evaluar tu desempeño que en pasar un buen rato, pueden discutirlo con su terapeuta”. (Por cierto, no lo están, añade ella).

Y no dudes en dejar que la gente se sirva por sí misma, cuando sea posible. “Si no tienes tiempo para jugar a ser el barman, crea una bebida insignia con anticipación que puedas servir a todos tus invitados. También puedes simplemente dejar algunos mezcladores para que los invitados se sirvan y hagan sus propias creaciones”, sugiere Caroline Utz, directora editorial y de estrategia en The Spruce.

Está bien tener tiempo a solas

Las cosas funcionarán lo suficientemente bien si no lo supervisas todo, así que cuídate. Tómate pausas o caminatas si eso te ayuda a mantenerte centrado.

“Aunque el mindfulness se está convirtiendo en un término demasiado utilizado en la sociedad actual, hay algo valioso que podemos tomar de esto y aplicar a la temporada de fin de año”, dice Brook Choulet, psiquiatra deportiva y de rendimiento de concierge y fundadora de Choulet Performance Psychiatry.

Ella recomienda “programar microdescansos intencionales” para hacer algo que disfrutes.

“Por ejemplo, podrías programar una llamada telefónica con un amigo de otro estado, tomar un paseo de 15 minutos al aire libre, o incluso ajustar el temporizador y tomar un baño de 15 minutos sin interrupciones”, dijo.

Espera algo de discordia y no te alarmes por ello

“Si te preocupa la polarización y entrar en conversaciones incómodas, intenta pensar en maneras en que puedas terminar una conversación o cambiarla de dirección”, dice Bufka.

Ella recomienda preparar algunas frases de antemano para ayudar a terminar la conversación o cambiarla de dirección.

En resumen, tener la intención de una temporada festiva menos perfecta puede ser justo lo que necesitas.

___

Katherine Roth cubre temas de vida y estilo y otros temas para The Associated Press desde Nueva York.

___

Esta historia fue traducida del inglés por un editor de AP con la ayuda de una herramienta de inteligencia artificial generativa.

World

Azerbaijan Airlines plane headed to Russia crashes hundreds of miles off course, dozens feared dead

Published

9 hours ago

December 25, 2024

Press Room

Azerbaijan Airlines plane headed to Russia crashes hundreds of miles off course, dozens feared dead

Dozens of passengers are feared dead after an Azerbaijan Airlines flight crashed near the city of Aktau in Kazakhstan on Wednesday, reports say.

The Embraer 190 passenger jet flying from Azerbaijan to Russia had 62 passengers and five crew on board, Kazakh authorities announced, saying 32 survivors had been rescued.

Flight J2-8243 had flown hundreds of miles off its scheduled route to crash on the opposite shore of the Caspian Sea. Officials did not immediately explain why it had crossed the sea, but the crash came shortly after drone strikes hit southern Russia. Drone activity has shut airports in the area in the past and the nearest Russian airport on the plane’s flight path was closed on Wednesday morning.

Russia’s aviation watchdog, meanwhile, said it was an emergency that may have been caused by a bird strike.

MORE THAN 30 DEAD IN BRAZIL BUS AND TRUCK COLLISION

In this photo taken from a video released by the administration of Mangystau region, the wreckage of Azerbaijan Airlines Embraer 190 lies on the ground near the airport of Aktau, Kazakhstan, Wednesday, Dec. 25, 2024. (The Administration of Mangystau Region/AP Photo)

Those aboard the plane included 42 Azerbaijani citizens, 16 Russian nationals, six Kazakhstani and three Kyrgyzstani citizens, according to Kazakhstani officials.

Russian news agency Interfax reported that both pilots died in the crash, citing a preliminary assessment by emergency workers at the scene. The news agency also quoted medical workers who stated that four bodies had been recovered from the crash so far.

A total of 29 survivors, including two children, have been hospitalized, the ministry told Russia’s state news agency, RIA Novosti, the Associated Press reported. Many passengers have yet to be accounted for.

MALAYSIA AGREES TO RESUME ‘NO FIND, NO FEE’ HUNT FOR FLIGHT MH370, 10 YEARS AFTER PLANE DISAPPEARED

More than 30 are feared dead following the crash near the Kazakhstani city of Aktau. (Azamat Sarsenbayev/AP Photo)

Video of the crash showed the plane descending rapidly before bursting into flames as it hit the seashore, and thick black smoke then rising, Reuters reported. Bloodied and bruised passengers could be seen stumbling from a piece of the fuselage that had remained intact.

Azerbaijani President Ilham Aliyev, who had been traveling to Russia, returned to Azerbaijan upon hearing news of the crash, the president’s press service said. Aliyev was due to attend an informal meeting of leaders of the Commonwealth of Independent States, a bloc of former Soviet countries founded after the collapse of the Soviet Union, in St. Petersburg.

Emergency crews at the site of the Azerbaijani airliner crash on Dec. 25, 2024. (Azamat Sarsenbayev/AP Photo)

Aliyev expressed his condolences to the families of the victims in a statement on social media.

“It is with deep sadness that I express my condolences to the families of the victims and wish a speedy recovery to those injured,” he wrote.

He also signed a decree declaring Dec. 26 a day of mourning in Azerbaijan.

The plane was en route from the Azerbaijani capital of Baku to the Russian city of Grozny in the North Caucasus, the Associated Press reports. (The Administration of Mangystau Region/AP Photo)

In a statement, Azerbaijan Airlines said it would keep members of the public updated and changed its social media banners to solid black.

“We ask God for mercy on the passengers and crew members who lost their lives,” a translated statement on X said. “Their pain is our pain. We wish a speedy recovery to those injured.”

Reuters and the Associated Press contributed to this report.

World

Who is Europe's top investor in space in 2023?

Published

10 hours ago

December 25, 2024

Press Room

Who is Europe's top investor in space in 2023?

Luxembourg remains Europe’s top investor in space in a year when defence spending on space exceeded civil space budgets for the first time since the 1990s.

Global public investment in space hit a record high of €106 billion in 2023, an 11% increase compared to 2022.

In Europe, the total funding was €11.9 billion, showing a modest 1% rise in its share of global space investment.

According to the European Space Agency, defence spending on space exceeded civil space budgets last year for the first time since the 1990s. Defence expenditures in space are projected to grow faster than civil spending, making up 53% of the budget in 2024.

The US continues to dominate global space investment, accounting for 64% of the total budget, while China holds a strong second place, growing its share from an estimated 2% in 2000 to 12% in 2023 through long-term programmes in both civil and defence.

Europe ranks third, contributing 11% of the global space budget in 2023.

What share of their GDP do EU countries spend on public space budgets?

Luxembourg remains Europe’s leading investor in space, dedicating 0.135% of its Gross Domestic Product (GDP) to the sector.

Globally, the country ranks third behind the US (0.262%) and Russia (0.169%).

In Europe, Luxembourg is followed by France, which invests 0.167% of its GDP, Italy at 0.103%, and Belgium at 0.095%.

On the other hand, private investment in space has continued to decline in 2023, dropping by 32% compared to 2022.

Europe also saw a 14% decrease in 2023 compared to the year before, with private space ventures receiving just below €980 million.

Although the US accounts for most of the global decline in 2023, its space sector continues to attract the largest share of investments at 60%, followed by Europe with 16% and China with 9%.

What was the state of space activity in 2023?

There were 221 orbital launches in 2023, an 18% increase compared to 2022.

Yet, a total of 212 launches were successful.

The US carried out more than half of the launches, with 96 of them conducted by SpaceX.

China accounted for 30% with 67 launches, a 5% increase from 2022, and Russia completed 19 launches.

The European launch service provider conducted three launches in 2023, including Europe’s first mission to Jupiter, which aimed to explore whether the planet’s three moons — Callisto, Europa, and Ganymede — could support life in their oceans.

Video editor • Mert Can Yilmaz