Previously there was talk of a plan to reduce the budget limit to $145m approved by all teams which will be introduced starting next year.

The budget limit will be further reduced to $ 140m for 2022 and to $ 135m for the 2023-2025 period.

By doing this, the sport will be able to manage and put everyone on the same line, including the research handicap system and development.

Already in October 2019, Formula 1 had agreed to a $175m budget reduction for 2021, but obviously the "explosion" of the coronavirus led the leaders to further lower the capital.

This reduction will facilitate teams with less capital than large ones.

However, this also led to a division between teams as Ferrari and Red Bull had said they did not want to drop below $150m while McLaren, who was part of the teams in favour of lowering the budget, had pressed to bring the limit down to $ 100m.

After a series of discrepancies, a compromise was reached that everyone agreed.

Ferrari, which was among the teams that didn't want to drop below $150m, argued that a budget limit of less than $150m would lead to job cuts in the team. Therefore Ferrari has accepted the reduction of aerodynamic development for the 2020 and 2021 seasons. They also said that the current car is not as competitive as they would have liked and therefore competing with small development opportunities could affect their ability to actually compete in the championship.

Another important point of this set of rules is the aerodynamic development limit. A set amount of time and data allowed in the defined wind-tunnel will be applied and an R&D allowance scale not fixed regarding the team's finishing position in the previous championship.

So, in 2021, the team that will finish first this year's championship, will be able to access 90% of the share, with a scale of mobile allowances with an increase of 2.5% so as to make sure that the team that will finish last can receive 112.5%.

While from 2022 onwards, the team first in the ranking will be granted 70% of the total quota, with 5% of increases, while the last classified will be granted 115%.

In addition, the producing teams have agreed on a fair exchange regarding the notional value of the customer's parts. In this case, when a smaller team will purchase pieces from the manufacturer, whether they are changes or suspensions, their defined value will be removed from the total figure of that team's budget.

This reduction therefore lacks approval by the FIA, the world motorsport council. The FIA approval vote procedure will take place next week.

The vote will also bring about new rules that have been discussed in public and already approved.

Some of these rules are:

- the delay in the introduction, until 2022, of new wide-ranging technical regulations scheduled for 2021;

- the requirement for teams to use 2020 cars also for 2021;

- the possible change of format for some race weekends that could be reduced to two days to facilitate the progress of the races once the season begins;

- the budget limit will increase or decrease by $ 1m if a race will be added to or removed from the race calendar;

- engine development restrictions will be applied in 2020 and 2021, including the number of changes allowed per season and the limitation of hours on a dynamometer test bench.

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