Scientific Collection «InterConf», (39): with the Proceedings of the 8th International Scientific and Practical Conference «Science and Practice: Implementation to Modern Society» (December 26-28, 2020) at Manchester, Great Britain

INCREASING THE EUROPEAN UNION BUDGET ON MEASURES 
SUPPORTING THE RECOVERY OF ITS ECONOMY 
In this article we focus our attention on fundamental budgetary instrument of the 
European Union, such as the Multiannual financial framework [1]. In the framework 
of strategic planning, it is compiled for seven years, whereas should not be in deficit. 
Its primary function is to provide so-called the expenditure limits for the period in the 
above mentioned time frame. In the context of the thematic focus of this contribution, 
we devote on flexibility instruments, the purpose of which is to allow the financing of 
specified expenditure, which can’t be financed within the ceilings, which are available 
for one or more other circuits.
It´s important to note that the negotiations on the current Multiannual financial 
framework for the years 2014 to 2020 have been marked by an asymmetric mortgage 
and debt crisis, an effort to revive private investment and consumer demand. 
Negotiations on the future Multiannual financial framework were marked by the 
process of withdrawal of the United Kingdom of Great Britain and Northern Ireland 
from the European Union, and thus by the loss of one of the key contributors to the 
European Union budget, as well as the economic crisis caused by the COVID-19 
pandemic (hereinafter in text referred to as "pandemic") [2, p. 8]. 
The pandemic has significantly worsened the socio-economic situation in the 
European Union. The European Commission has therefore submitted revised proposal 
for a strengthened Multiannual financial framework for the years 2021 to 2027 and an 
ambitious recovery plan [3]. In view of the long-term forecast of future cash flows into 
and out of the European Union budget, the European Commission worked up a report 

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for the European Parliament and the Council [4]. 
This forecast report states an estimate of the expenditure cash flows in the 
framework of the ceilings of the following Multiannual financial framework and the 
corresponding revenue cash flows during the next five years on the basis of the revised 
draft of the Multiannual financial framework of May 2020. In this context it should be 
noted that above mentioned revised Multiannual financial framework will be, in its 
essence, a fundamental pillar of the recovery of the European Union's economy in the 
horizon of a few years.
Overall, in the first five years of the next Multiannual financial framework, the 
payments are expected to reach 866 billion EUR. This amount isn’t evenly distributed 
across the years but follows the expected evolution of: the phasing-in of payments for 
the new spending programs (around 67% of the 5-year payments’ total); and the 
payments for outstanding commitments from the 2014 to 2020 period (the remaining 
33% of the payments) [4]. 
As we indicated at the beginning of this article, in the context of the pandemic, 
the European Union had to react flexibly to the arisen situation and in its essence 
urgently mobilize the amounts to finance appropriate measures. In the framework 
of the general budget of the European Union for the financial year 2020, the 
flexibility instruments shall be mobilized to provide the amount, and that: in the 
amount 73 300 000 EUR – this amount will be used to finance immediate measures 
in the context of a pandemic and to the strengthening of the European Public 
Prosecutor's Office [5]; in the amount 243 039 699 EUR – this amount will be used 
to finance immediate measures to solving the current health crisis in the European 
Union due to a pandemic [6]. Both flexibility instruments are bound in 
appropriations in the circuit titled Security and Citizenship in the Multiannu al 
financial framework.
Within the general budget of the European Union for the financial year 2020 
beyond framework of the ceiling of commitment appropriations within the circuit titled 
Security and Citizenship of the Multiannual financial framework shall be mobilized 

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 SCIENCE AND PRACTICE: IMPLEMENTATION TO MODERN SOCIETY
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reserve for unforeseen events in the amount 714 558 138 EUR in commitment 
appropriations. This total amount will be credited against the reserve in the framework 
of ceiling of commitment appropriations for the financial year 2020 for the circuit 
entitled Administration of the Multiannual financial framework [7].
It can be clearly observed that pandemic in the point of view of the scale and 
intensity has practically affected every sphere that is financed, so to speak, from 
European money. Therefore was important, even necessary, that the European Union's 
decision-making bodies adopt the above mentioned instruments with the potential to 
help recover (restart) the economy within the European Economic Area. At the same, 
it´s important to say that special attention deserves adoption of effective measures to 
increase the self-sufficiency of the European Union (as a whole) in the context of a 
sustainable economy.
In its essence, these are specific areas within the European Union's economy that 
need to be given due attention. As this is a common interest within the priority areas, 
inter alia, as we mentioned in this article, it can be anticipated that the competent bodies 
of the European Union, in the framework of its institutional base, will make a joint 
effort in order to active recover the economy in the shortest possible time (at least) to 
the so-called pre-crisis level. Some suggestions presented in this article are to be 
understood only in terms of academic opinions and de lege ferenda proposals.