1. P reliminary D raft B udget 2010 Working towards economic recovery, stimulating growth and innovation Siim Kallas EC Vice-President for Administrative Affairs, Audit & Anti-Fraud Brussels, 29 April 2009

2. EU Budget 2010 – gearing up for growth Focusing investments to maintain jobs and stimulate growth: Biggest budget share for research, education, innovation; More funds for energy and transport infrastructure; Stable spending to support people and businesses. Boosting integration of EU-12 through cohesion policy and agriculture; Increasing support for justice and security programmes; Responding to global needs and standing by commitments to poorer countries. Securing extra funds for European Economic Recovery Plan (EERP); 2

3. €134 bn Budget 2009 EERP +€ 2.6 bn €139 bn PDB 2010 EERP +€ 2.4 bn 2010: second year of European Economic Recovery Plan (EERP) – an extra €2.4bn to confirm in 2010 €129 bn Budget 2008 EU Economic Plan for Recovery (EERP - €5bn) The EU budget as an instrument for recovery

4. Commitment appropriations €138.6 billion 1.18% of EU GNI +€5.0 billion,  3.8% compared to 2009 * EU spending proposal for 2010 Payment appropriations €122.3 billion 1.04% of EU GNI +€ 5.4 billion,  4.7% compared to 2009* * Excluding Economic Recovery Plan, Solidarity Fund, Food Facility 4

5. COMMITMENT APPROPRIATIONS BY HEADING Billion €% of total budget % change from 2009* 1. Sustainable growth: Competitiveness Cohesion 62.2 12.8 49.4 44.9 9.2 35.6 +3.2 +8.4 +2.0 2. Preservation and management of natural resources: Direct payments & market related expenditure Rural development, environment, fisheries 59.0 43.8 15.2 42.6 31.6 11.0 +5.1 +6.4 +2.1 3. Citizenship, freedom, security and justice: Freedom, Security and Justice Citizenship 1.6 1.0 0.6 1.2 0.7 0.5 +7.6 + 13.5 -0.3 4. The EU as a global player7.95.7+1.8 5. Administrative expenditure (for all EU institutions): of which Commission 7.9 3.6 5.7 2.6 +2.1 +0.9 Total commitments€ 138.6100.0+3.8 In % of EU-27 GNI1.18 Where EU money in 2010 could go * Excluding extraordinary measures taken in 2009: Economic Recovery Plan, Solidarity Fund, Food Facility 5

6. Biggest investments to restore growth and jobs 2010: Steady rise in funds for jobs and growth Competitiveness, growth, jobs and cohesion Budget heading 1 6 PEOPLE: 9m citizens to benefit from European Social Fund in 2010 PEOPLE: 9m citizens to benefit from European Social Fund in 2010 BUSINESS: +400,000 jobs for SMEs by 2013 BUSINESS: +400,000 jobs for SMEs by 2013 R&D: €6.2bn for research in 2010 R&D: €6.2bn for research in 2010 INFRASTRUCTURE: 25,000 km road built/rebuilt by 2013 INFRASTRUCTURE: 25,000 km road built/rebuilt by 2013

7. 77% EU-15 23% EU-10 Boosting integration of EU-12 into cohesion policy 2006 20082010 52% EU-12 47% EU-12 56% EU-15 48% EU-15 Share of Cohesion and Structural Funds: Budget heading 1b Balancing funding as EU-12 to receive biggest share: 52% Member States now on an equal footing commitments: €49.4bn +2% on 2009  Cohesion Fund: +9.6%  Territorial cooperation: +3.7% Cohesion, growth, employment 7

8. 84% EU-15 16% EU-12 Phasing-in of EU-12 for agricultural support 200820092010 19% EU-12 18% EU-12 82% EU-15 81% EU-15 EU-12 agricultural income now 47% higher since accession 2010 to see EU-12 receive €11bn in agricultural support total commitments for heading 2: €59bn +5.1% on 2009*  Direct aid & Market related expenditure: +6.4%  Rural development: +2.4% management of natural resources 8 (* excluding Economic Recovery Plan)

9. €1.3 bn Budget 2008 Making Europe and its borders a safer place for all €1.6bn PDB 2010 €1.5 bn Budget 2009 commitments: €1.6bn +7.6% on 2009*  Securing and safeguarding liberties 15.5%  Managing migration flows +6.3%  Culture +3.4% Citizenship, freedom, security, justice: Budget heading 3* * Excluding European Solidarity Fund 9

10. Responding to needs beyond EU borders €7.9bn PDB 2010 Budget heading 4 commitments: €7.9bn +1.8% on 2009* EU as a global partner Food facility  Instrument for Stability: +16.7%  Pre-accession IPA: +4.9%  Common Foreign Security Policy (CFSP) : +15.9% Budget 2009 Budget 2008 Food facility *Excluding Food Facility Helping the world’s poorest recover from the downturn A strong stance on global stage to meet global challenges: climate change, energy, food security, globalisation… €7.5bn €8.1bn 10

11. Administrative spending €7.8bn PDB 2010 Administration: Budget heading 5 Commitments: €7.8bn +2.1% on 2009  European Commission : +0.9%  Other institutions: +2.4% EC administrative spending slows as enlargement needs met €7.7bn Budget 2009 €7.6bn Budget 2008 11

12. Share of spending areas by headings, in % Total: € 138.6 billion 12