A quick dive into the EU budget
Every 5 to 7 years the European Union approves its long-term budget, referred to, in EU jargon, as the Multiannual Financial Framework (MFF). The MFF determines the maximum budget spending of the EU for each major policy such as agriculture, environment or research. How the EU decides to spend its budget is key to the future of any EU policy.
The current MFF (2014 to 2020) is soon coming to an end. On 2 May 2018, the Commission published its proposals for the new MFF, running for a period of seven years (2021-2027). However, before the new MFF can be adopted, the European Council (gathering the Heads of States) and the European Parliament have to agree on the proposal.
Last week (14 November 2018), the European Parliament voted on a common position on the new MFF. The European Parliament is eager to reach a good agreement with the European Council and the European Commission before the European Elections in May 2019. Although the Parliament is indeed ready to negotiate, the Council has not yet agreed on a common position.
What’s in it for social enterprises?
In a series of articles over the next few weeks, Euclid Network will explain why the EU budgets matters to you! This week we zoom into the future “InvestEU” programme.
For the EU budget 2021-2027, the European Commission will open up 4 billion Euros for investment in social enterprises (well, it is a bit more complicated than that, but worth knowing). The Commission proposes to create the “InvestEU” programme, bringing together all of Europe’s financial instruments in the form of loans and guarantees under one roof (no idea what that means? Stay tuned and look out for Euclid’s EU funding guide to be published in 2 weeks).
InvestEU will support four policy areas (called ‘windows’): sustainable infrastructure; research, innovation and digitalisation; small and medium-sized businesses; and social investment and skills. Social enterprises will be eligible for InvestEU’s loans and guarantees, especially under the last window (which amounts to €4 billion).
The objectives of this window are to:
- Increase the access to and availability of microfinance and finance to social enterprises and social economy;
- Support financing and investment operations related to social investment and skills;
- Develop and consolidate social investment markets.
Though the European Parliament and European Council seem positive about InvesEU, they have not yet agreed on the proposal. At Euclid Network we push for maintaining, if not enlarging, the social window of InvestEU and ensuring that social enterprises continue to have access to these funds.
Wonder how you can access this funding? At Gathering to Grow (in 2 weeks time: don’t miss out!) Euclid Network will launch its EU funding guide that will tell you all need to know to choose and apply for EU funding!
If you would like to find out more about the European Union’s developments on the Multiannual Financial Framework 2021-2027 or comment on our position, contact the Euclid team.