EU member-states on Wednesday agreed to push for a 2020 budget of 153.1 billion euros, marginally lower than the spending proposed by the European Commission.
The member-states reached the agreement as the bloc reaches the end of its seven-year budget cycle.
Budget negotiations tend to be fraught affairs, with EU governments usually seeking to curb spending, while the European Parliament tends to advocate a bigger expenditure.
EU lawmakers are expected to agree on their negotiating stance in October.
Last month, the commission proposed a 2020 budget of 153.7 billion euros , a 3.5-per-cent annual increase to tackle priorities including the economy, youth, climate change and security.
The member states’ 2020 budget represents a 3.3-per-cent year-on-year rise, to take into account an expected surge in payments as the current multi-annual budget cycle ends.
The earmarked funds will provide support for priority areas such as growth and jobs, climate action and migration management, while leaving margins for unforeseen needs, EU governments said in a statement.
Most of the European Union’s budget flows back to member states, for instance as agricultural subsidies or support for poor regions.
The figure, agreed by EU ambassadors, is based on the premise that Britain will continue to contribute to the EU budget until the end of 2020, despite its planned departure in October.
Under a withdrawal deal negotiated with Brussel, not yet ratified London will continue to contribute during a transitional period.
Negotiations are also under way on the EU’s next long-term budget, for the years 2021-27.
