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The annual budget of the European Union for 2025 sets the commitments, the legal promises to spend money on activities whose implementation extends over several financial years, to a total of €192,7 billions. Almost €78 billion will be destined for the area labelled “Cohesion, Resilience, and Values”, which aims to address pressing societal challenges and promote a more inclusive and equitable general environment for citizens in the whole European Union.

As always when it comes to the EU annual budget, one of the core objectives of the document is to strengthen social cohesion and reduce disparities between regions on the continent. This is reflected in significant funding allocations for regional development and cohesion policies, especially for the relatively poorer areas in the EU. These funds aim to support less developed regions, promote economic growth, and create jobs in areas facing socio-economic challenges. By investing in infrastructure, education, and social programs, the EU thus seeks to narrow the gap between wealthy and poorer regions, fostering a more balanced and united Europe. Cohesion and regional funds have been instrumental in supporting the development of the incoming member states in past decades, with results that testify the relevance of such tools in shaping EU stability and economic growth.

The impact of the COVID pandemic, of the war in Ukraine, and the subsequent energy crisis prompted by the Russian invasion, along with the severe increase of inflation all over the EU member states, had all created dramatic problems for the everyday living of European citizens. That is why another key aspect of the EU 2025 budget is its emphasis on promoting social inclusion and combating poverty. The budget allocates substantial funds to social programs that target vulnerable groups, such as the unemployed, the elderly, and people with disabilities. Generally speaking, these programs aim to provide social protection, promote social integration, and improve living standards for those in need all across the EU. Furthermore, the 2025 annual budget for the European Union recognises the importance of investing in human capital and promoting social mobility, as significant funds are allocated to education, training, and lifelong learning programs, especially for those categories of workers who lost their jobs and need to convert their skills to other sectors. Various projects of this kind have been implemented in different EU countries, and the green and digital transitions proposed by the European Commission will definitely require the redefinition of working skills for millions of people in the whole bloc, especially in those geographic areas where many jobs were related to the production and refinery of fossil fuels.

Migration and security are other topics that gained relevance in the last decades when it comes to core social aspects for the whole EU. Both the citizens and political parties found room to debate on such issues, and the European institutions had to focus on policies that address these challenges. Not surprisingly, the EU 2025 budget, which allocates funds to support the integration of migrants, promote sustainable development, and enhance security measures.

Written by: Francesco Marino