Press release - Repaying the recovery plan: 2024 EU budget under pressure
- Repayment of borrowed EU recovery aid increases due to rising interest rates
- - Repayment of borrowed EU recovery aid increases due to rising interest rates
- Action needed to maintain the EU’s ability to finance its priorities and policies
- High inflation reduces real-term value of the EU budget
- EU’s long-term budget and revenues must be reformed
MEPs have adopted a resolution warning about the impact of rising recovery borrowing costs on next year’s EU budget, putting flagship EU programmes at risk. - Such a revised MFF “must be in place by 1 January 2024”.
- Background
In 2021, the Commission started borrowing funds on the financial markets to finance the “NextGenerationEU” recovery instrument. - In adopting the MFF, Parliament, Council and the Commission agreed that expenditure covering the financing costs of the recovery instrument should not reduce EU programmes and funds.