¿How is the EU budget established? Pressure in the 1980s when growing tension between the two arms of the budgetary authority (the European Parliament and the Council) increasingly disrupted the annual budgetary procedure and led to a growing mismatch between resources and the Communitys requirements. The succession of budget crises prompted the Community institutions to agree on a method designed to improve the operation of the budgetary procedure while at the same time guaranteeing budgetary discipline
The budget ¿How is the EU budget established? The first financial perspective took effect in 1988. It was so successful as a means of maintaining budgetary discipline and projecting future spending that the Convention on the Future of the Union and the Intergovernmental Conference, which ended in June 2004, enshrined it in the draft Treaty establishing a Constitution for Europe under the title of the European Unions multiannual financial framework.
The budget The financial perspective is a multi-annual financial planning framework which sets limits on European Union expenditure. It is compulsory in the sense that the financial perspective ceilings must be respected in the annual budgetary procedure. The European Council (Heads of State and government of the EU member states) decides by unanimity on the figures, on the basis of a Commission proposal. The European Parliament must give its consent. Parliament approved the current FP by simple majority. ¿How is the EU budget established?
The budget It translates into financial terms the priorities set for the Union's policies and is at the same time an instrument of budgetary discipline and planning, and determines the limits on the financing of the EU budget. ¿How is the EU budget established?
The budget The financial framework differs from indicative financial programming in that the ceilings on expenditure are binding on the parties to the Interinstitutional Agreement. However, the financial framework cannot be regarded as a multiannual budget since the annual budgetary procedure is still essential for determining the actual level of expenditure under the ceilings for the year in question and, above all, for allocating appropriations between the various budget headings.. ¿How is the EU budget established?
The budget The classification of Union expenditure in the headings of the financial framework reflects the various policy options. The breakdown of total expenditure by heading must therefore reflect the main political priorities adopted for the relevant period. Since 1988 the summary budget tables have been systematically organised by financial framework heading in order to make it easier to assess the funds provided for implementing these political priorities ¿How is the EU budget established?
The budget Each heading carries an amount of commitment appropriations for each year. The financial framework table also indicates the maximum amount of appropriations for commitments and appropriations for payments, expressed in millions of euros. The amount of appropriations for payments is also expressed as a percentage of the Communitys GNI (gross national income), on the basis of forecast GNI growth. In this way, it can be compared with the ceiling on own resources, which is also fixed as a percentage of the Communitys GNI by the own resources Decision. ¿How is the EU budget established?
The budget The Commission laid before the Council on 30 January 2002 a common financial framework for 2004-2006, updated to take account of the needs of enlargement. The adjustment was approved jointly by the two arms of the budgetary authority and published in the Official Journal on 14 June 2003. The new framework came into force in 2004, the first budgetary year affected by enlargement.common financial framework for 2004-2006 ¿How is the EU budget established?
The budget 1988 Delors I 1994 Delors II 1995 (UE-15) Agend a 2000 200120022003 2004 (UE-25) 20052006 Financial perspective ceiling 45 303 73 48680 94393 79297 189100 672102 145115 434119 419123 515 % of EU GNP/GNI 1.11%1,27%1,26%1,12% 1,10% 1.13% 1.12% EU budget 45 30371 78979 84393 32396 99999 43499 812109 569116 554121 273 % of EU GNP/GNI 1,11%1,24% 1,11%1,12%1,09%1,08% 1,10% Historical data show that actual annual budgets have stayed well below the ceiling.
The budget Financial perspectives for 25 ( M y técnically adjusted for evolution of gross national product and prices) Headings 200420052006 1) Agriculture 49.30550.43150.575 2) Structural actions 41.03541.68542.932 3) Internal policies 8.7228.9679.093 4) External action 5.0825.0935.104 5) Administration 5.9836.1546.325 6) Reserves 442 7) Pre-accession strategy 3.455 8) Compensationes 1.4101.2991.041 115.434117.526118.967
The budget 2004 (%) Miscellaneous revenue 1.1 Surplus available from the preceding financial year 5.4 Surplus of own resources resulting from the repayment of the surplus of the Guarantee Fund for external actions 0.2 Net amount of customs duties, agricultural duties and sugar levies 12.2 VAT own resources at the uniform rate 13.3 Remainder to be financed by the additional resource (GNI own resources) 67.8 Total revenue 100 Revenue
The budget The Commission proposals relating to the next financial framework 2007–2013, including also the own resources system, are currently being discussed by Council and the European Parliament. The Commission hoped for an agreement in spring 2005. However, the European Council failed to reach an agreement at its meeting in June 2005 and the objective now is that the European Council reaches an agreement in December 2005, which will subsequently need to be approved also by the European Parliament. on the multi- annual financial framework for 2007-2013 On the multi-annual financial framework for 2007-2013
The budget Integrating the single market into the broader objective of sustainable development, mobilising economic, social, and environmental policies to that end. The goals under this priority, which corresponds to new headings 1 and 2, are competitiveness, cohesion and the preservation and management of natural resources. The Commission proposes that the Union concentrate its action over the next seven year-period on three main priorities: On the multi-annual financial framework for 2007-2013
The budget Giving a real meaning to the concept of European citizenship by completing the area of freedom, justice, security and access to basic public goods and services – a priority embodied in new heading 3. The Commission proposes that the Union concentrate its action over the next seven year-period on three main priorities: On the multi-annual financial framework for 2007-2013
The budget Establishing a coherent role for Europe as a global partner – inspired by its core values – in assuming its regional responsibilities, promoting sustainable development and contributing to civilian and strategic security. This corresponds to heading 4. The Commission proposes that the Union concentrate its action over the next seven year-period on three main priorities: On the multi-annual financial framework for 2007-2013
The budget Headings 2000-2006Headings 2007-2013 1) Agriculture 1) Sustainable growth 1a) Competitiveness for growth and employment 1b) Cohesion for growth and employment 2) Structural actions2) Preservation and management of natural resources 3) Internal policies3) Citizenship, freedom, security and justice 4) External action4) The European Union as a global partner 5) Administration 6) Reserves 7) Pre-accession strategy 8) Compensations6) Compensations On the multi-annual financial framework for 2007-2013
The budget On the multi-annual financial framework for 2007-2013
The budget Headings in %200620072013 2007 - 2013 2013/2007 1) Sustainable growth 40 45 48 46 129 1a) Competitiveness for growth and employment 7 9 16 13 213 1b) Cohesion for growth and employment 32 36 32 33 107 2) Preservation and management of natural resources 47 44 36 40 101 CAP 37 33 27 29 97 3) Citizenship, freedom, security and justice 2 2 3 2 173 4) The European Union as a global partner 7 6 10 9 190 5) Administration 3 3 3 3 122 6) Compensations 1 0.3 - 0.1 - Total commitments 100 121