Budget /14/2015 ©European Commission 1 B udget 2011 Spending Priorities Laying the cornerstone for smart, sustainable and inclusive growth Jan Gerritsen DG Budget A1 IBFP Conference 18 February 2011

Budget /14/2015 ©European Commission 2 APPROPRIATIONS BY HEADING Billion € % change from 2010* Margins (Million €) CAPACAPACA 1. Sustainable growth: Competitiveness Cohesion Preservation and management of natural resources: Direct payments & market related expenditure Rural development, environment, fisheries Citizenship, freedom, security and justice: Freedom, Security and Justice Citizenship The EU as a global player Administrative expenditure (for all EU institutions): of which Commission Total appropriations In % of EU-27 GNI Where will EU money go in 2011 * incl. Economic Recovery Plan

Budget /14/2015 ©European Commission Commitment Appropriations €141.9 billion 1.13% of EU GNI +€0.4 billion,  0.3% compared to 2010* EU spending for 2011 Payment Appropriations €126.5 billion 1.01% of EU GNI +€3.6 billion,  2.9% compared to 2010 * Including Economic Recovery Plan

Budget /14/2015 ©European Commission 4 Share of spending areas by headings, in % Total: € billion in commitment appropriations Natural resources overall 41.3%

Budget /14/2015 ©European Commission 5 Share of spending areas by headings, in % Total: € billion in payment appropriations Natural resources overall: 44.6%

Budget /14/2015 ©European Commission 6 Multiannual Financial Framework – Heading 1A Competitiveness for Growth and Employment Multiannual Financial Framework – Heading 1A Competitiveness for Growth and Employment Commitments: €13.5 billion - 9.0% on 2010* Margin € million *  TEN +16.8%  FP %  CIP + 8.2%  Lifelong Learning +4.4% Boosting the private sector Payment appropriations: €11.6 billion + 3.1% on 2010 ** Evolution of the 7th Framework Programme (FP7) * The margin does not take in to account the European Globalisation Fund ( 500 million). EUR 34 million above the ceiling is financed by the mobilisation of the Flexibility Instrument. ** Including European Economic Recovery Plan €5.5 bn €6.8 bn €8.6 bn

Budget /14/2015 ©European Commission 7 Multiannual Financial Framework – Heading 1B Cohesion for Growth and Employment Multiannual Financial Framework – Heading 1B Cohesion for Growth and Employment  Cohesion Fund: +8.7%  Territorial cooperation: +5.6%  Structural funds: +1.8% Commitments: €51.0 billion +3.2% on 2010 Margin €6.4 million Evolution of Cohesion Policy in payment appropriations Reinforcing Social, Economic and Territorial Cohesion Payment appropriations: €41.7 billion +14.5% on 2010 €36.4 bn €34.9 bn €41.7 bn

Budget /14/2015 ©European Commission 8 Multiannual Financial Framework – Heading 2 Management of Natural Resources Multiannual Financial Framework – Heading 2 Management of Natural Resources % of Direct Aid Decoupled Compared to 85% in 2010  Direct aid & Market related expenditure: - 2.1%  Rural development: +0.5%  Life +: % Commitments: €58.7 billion - 1.4% on 2010* Margin €1 679 million Evolution of LIFE + programme Payment appropriations: €56.4 billion - 3.0% on 2010 €317 million €306 million €340 million

Budget /14/2015 ©European Commission 9 Multiannual Financial Framework – Heading 3 Citizenship, Freedom, Security and Justice Multiannual Financial Framework – Heading 3 Citizenship, Freedom, Security and Justice €1.6bn €1.5 bn  Securing and safeguarding liberties +25.4%  Managing migration flows +18.4%  Culture +6.3%  Audiovisual and Media +7.8% Implementing the “Stockholm Programme” Commitments: €1.8 billion +3.8% on 2010 Margin €67.1 million €1.8bn Payment appropriations: €1.5 billion - 1.3% on 2010 Evolution Heading

Budget /14/2015 ©European Commission 10 Multiannual Financial Framework – Heading 4 EU as a Global Player Multiannual Financial Framework – Heading 4 EU as a Global Player Budget 2010 FF € 152 million  Neighbourhood policy (ENPI): + 9.3%  Pre-accession (IPA): %  Cooperation (DCI) : + 7.2%  Instrument for Stability: +32.2%  Foreign Security (CFSP) : +16.3%  Humanitarian Aid: +3.0% Budget 2009 Food facility €8.1bn Commitments: €8.8 billion + 7.5% on 2010 Margin € million * €7.9bn Budget 2011 €8.8bn Payment appropriations: €7.2 billion - 7.1% on 2010 * The margin does not take into account the appropriations related to the Emergency Aid Reserve (253.9 Million). EUR 71 million above the ceiling is financed by the mobilisation of the Flexibility Instrument Evolution Heading 4 Promoting EU Values € 844 million

Budget /14/2015 ©European Commission Multiannual Financial Framework – Heading 5 Administration Multiannual Financial Framework – Heading 5 Administration No New Posts for the Commission in 2011 Commitments: €8.2 billion +3.4% on 2010 Margin €243 million Payment appropriations: €8.2 billion +3.4% on 2010

Budget /14/2015 ©European Commission 12 Growth and Jobs Supporting the EU economy post-crisis Budget heading 1 “Sustainable growth” Payment appropriations: €53.3 billion +11.8% on 2010 €47.7 bn Budget 2010 €53.3 bn Budget 2011 Energy Projects to aid economic recovery € 1.0 billion  FP %  Egnos/Galileo %  Structural Funds +15.3%  Cohesion Fund +11.3% Commitment appropriations: €64.5 billion +0.4% on 2010 including European Economic Recovery Plan

Budget /14/2015 ©European Commission 13 Flagship Initiative: "Innovation Union" To improve framework conditions and access to finance for research and innovation so as to strengthen the innovation chain and boost levels of investment throughout the Union “The aim is to re-focus R&D and innovation policy on the challenges facing our society, such as climate change, energy and resource efficiency, health and demographic change. Every link should be strengthened in the innovation chain, from 'blue sky' research to commercialisation.” Research: Innovation Union

Budget /14/2015 ©European Commission 14 Global envelope: € 54.5* billion Budget 2011: € 8.6 billion FP7 EC: € 8.0 billion Indirect actions (operational budget: € 7.5 billion) % 2011/2010 Cooperation (collaborative research) € 4.6 billion+12.4 Ideas (frontier research) € 1.3 billion+18.3 People (human potential) € 0.8 billion+41.2 Capacities (research capacity) € 0.7 billion+9.8 Direct actions (JRC – oper. & admin.) € 0.3 billion+3.6 FP7 EURATOM:€ 0.6 billion Indirect actions (operational budget: 0.5 billion) % 2011/2010 Fusion energy, ITER & Fission € 0.4 billion +3.1 Fission € 0.1 billion +4.0 Direct actions (JRC – oper. & admin.) € 0.1 billion +2.8 * - Including indicative amounts for Euratom in Research framework programmes

Budget /14/2015 ©European Commission % Youth Life Long Learning Programme €1.2 billion over individual grants, including: – over Erasmus grants – over Leonardo da Vinci grants Youth in Action Programme €0.1 billion – around participants – over participants in the European Voluntary Service People: Mobility for young researchers €0.8 billion Europe 2020 flagship: Youth on the move € 2.1 billion Europe 2020 flagship: Innovation Union

Budget /14/2015 ©European Commission 16 European Social Fund €10.9 billion for training, employment or guidance of over 9 million citizens Globalisation Adjustment Fund €500 million /yearly for workers suffering from the consequences of major structural changes in world trade patterns European Microfinance Facility €25 million for launching micro-businesses Social policies

Budget /14/2015 ©European Commission 17 Instrument for pre-accession (IPA)€1.8 billion European Neighbourhood Instrument (ENPI)€1.8 billion – Of which Palestine€300 million Development Cooperation Instrument (DCI)€2.6 billion Others €2.5 billion – Of which Human Rights€167 million – Of which Foreign Policy (CFSP)€327 million – Of which Humanitarian Aid €825 million 2011 External Relations Priorities

Budget /14/2015 ©European Commission 18 Launching a decade of smart, sustainable and inclusive growth Budget 2011 Europe 2020 Budget Review € 57.9 billion from Budget 2011 linked to EU 2020 flagship initiatives Budget Review Financial Framework post 2013

Budget /14/2015 ©European Commission 19 f Flagship 1: Innovation Union B 2011 € 21.9 bn Flagship 2: Youth on the move B 2011 € 1.1 bn Flagship 3: A digital agenda for Europe B 2011 € 2.4 bn Flagship 4: Resource efficient Europe B 2011 € 21.1 bn Flagship 5: An industrial policy for the globalisation era B 2011: € 0.8 bn Flagship 6: An agenda for new skills and jobs B 2011 € 9.0 bn Flagship 7: European Platform against Poverty B 2011: € 1.6 bn Budget 2011 commits € 57.9 billion to Europe 2020 flagship initiatives