Towards a budget for the Euro zone in 2021?

November 20, 2018

Hat: Towards a budget for the Euro zone in 2021?

Funding Scheme: 2018-11-20


The French and German finance ministers, Bruno le Maire and Olaf Scholz, have presented their draft proposal for a Euro zone budget, covering the 2021-2027 period.


This draft proposal has been presented during a special Eurogroup meeting, hold on Monday, November 19 at Brussels. This budget would not replace the Multiannual Financial Framework, but it would be an integral part of the latter. The originality of this mechanism is that it must be voted unanimously by the EU Member States, but it could be used only by the 19 countries that are part of the Euro zone.

This Euro zone draft proposal has been conceived as an investment budget that would be focused on innovation, research and human capital matters. Its main objective is to reinforce the convergence within the Economic and Monetary Union, which is a critical element for the viability of the Euro zone.

Although this draft proposal has been praised by the majority of the represented Member States at the Eurogroup meeting, some countries have shown signs of scepticism. Among them are the Netherlands, which have expressed through the voice of its Minister of Finance their doubts regarding the relevance of this budget proposal for the interest of its citizens. This proposal, that does not mention any size of budget, could however be an important instrument to prevent a euro crisis that could come from Italy, regarding to the acronimous discussions that are actually held about the Italian budget proposal for 2019.

Url description: Euractiv


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