Explain European subsidies to us

The European Union finances a range of projects and programs, in the form of loans, to support EU policies and programs, or in the form of grants, managed by national and regional authorities.

Among the many European subsidies, the best known is the CAP: the common agricultural policy, put in place to support farmers in the face of globalization and guarantee Europe’s food security.

There has been a lot of talk about this common agricultural policy this year and its financial aid. The CAP is the European Union’s largest expenditure item: with nearly 53 billion euros, it is a third of the overall budget, distributed in the form of aid to farmers. This aid is not distributed equally among the 27 member countries. In the top 5, France receives the most subsidies with almost 10 billion euros. Then come Spain, Germany, Italy and finally Poland. Secondly, this money is redistributed again, according to the departments. In France, between 2021 and 2022, Aveyron has benefited the most, ahead of Saône-et-Loire, Cantal and Pyrénées-Atlantiques.

To define the amount of the envelope, each year the European Commission proposes a budget for the following year. The amount is amended by the European Parliament and by the Council of the European Union, which brings together the States. It must respect the priorities established by the 27, every seven years, in the multiannual financial framework.

These grants can also be awarded to people or entities who responded to a call for projects. Many people can therefore receive this aid. Farmers first, as we have seen. The other big chunk of the budget is the so-called cohesion funds. This is money used for regional development, to finance, for example, major road or rail infrastructure.

SMEs, small and medium-sized businesses, can also receive money in the field of research and innovation. NGOs working on themes such as citizenship, civic participation or social inclusion are also eligible. You can also receive grants if you are a researcher, this also concerns students via study grants or via the Erasmus program. There are also programs aimed at combating youth unemployment. In general, this is aimed at young people aged 13 to 31.