Long-term economic growth at the heart of EU spending[ Figures and graphics available in PDF and WORD PROCESSED ]
1. Sustainable growth: Reinforcing economic competitiveness and cohesion
In 2008, the EU budget will allocate EUR 11.1 billion (+18.3% from 2007) to boost the Union’s competitiveness and EUR 46.9 billion (+3.1%) to foster prosperity and economic cohesion across Europe’s regions.
Of the EUR 11.1 billion earmarked for competitiveness, EUR 6.1 billion will go to research (+11%), EUR 1.9 billion to energy and transport networks (+92.5%) and EUR 1 billion to education and training (+9.3%). Several programmes under competitiveness will provide a total of EUR 940 million to the EU’s satellite navigation system Galileo for its start-up phase.
Out of the EUR 46.9 billion intended to foster regional growth and employment, EUR 37 billion (+5.2%) under the ‘Convergence’ objective will strengthen local development potential in less prosperous regions. The regions not covered by the Convergence objective will receive EUR 8.6 billion (-5.1%) under the ‘Regional competitiveness and employment’ objective. An additional EUR 1.2 billion will be spent from the ‘Territorial cooperation objective’, mainly to build cross-border cooperation networks and disseminate best practices.
Commitments: EUR 58.0 billion, +5.7%; Payments: EUR 50.3 billion, +15.4%
2. Natural Resources: Stability for farming communities, sustainable development in rural areas and clean environment
The 2008 commitments for natural resources will also reflect the changes in the Union’s spending priorities. As a result of recent reforms in European agriculture, the allocations for market expenditure and direct aids will decrease by 3.4% in comparison to 2007 and will amount to EUR 40.9 billion. This decrease is partly offset by increases in the commitments for rural development (+4.5%) and the environment (+12.0%). This will see EUR 267 million go to the EU’s environmental protection programme LIFE+ and EUR 12.9 billion for rural development.
Commitments: EUR 55.0 billion, -1.4%; Payments: EUR 53.2 billion, -1.9%
The EU budget’s highest spending lines cross in 2008
• Constant increase for Growth & Jobs
• Firm stability for Agriculture
Sustainable economic growth
Competitiveness & Cohesion
Direct aid, market related exp., rural development, etc.
3. Citizenship, Freedom, Security and Justice: making Europe a safer place
The EU support in the field of freedom, security and justice will grow by 16.7% to reach a total of EUR 0.7 billion. Next year will see over 390 million – an increase of 24% – for programmes to manage migration flows. The allocations for Citizenship, which covers EU programmes such as Culture, Youth, Consumer Protection and Public health, will show an increase of 14.7% and amount to some EUR 0.6 billion.
Commitments: EUR 1.3 billion, 15.8%; Payments: EUR 1.2 billion, 32.2%
4. The EU as a Global Player: Stability, peace and prosperity
beyond our borders
Pre-accession aid for the candidate countries and potential candidates in the Western Balkans will increase by 14.0% to reach EUR 1.4 billion in 2008. The EU assistance to the neighbouring countries to east and south will also increase to reach EUR 1.6 billion (+10.2%), of which EUR 300 million will help Palestinian institutions to provide better services and address urgent needs. For all other developing regions (ACP, Asia and Latin America), the EU budget will commit EUR 2.3 billion (+3.3%).
Partly due to the extra support for the European Security and Defence Policy operation in Kosovo, the Common foreign and security policy will increase considerably by 79.2% to reach 0.3 billion. The EU’s humanitarian efforts will receive some EUR 0.8 billion (+3.1%), while the funds for democracy and human rights will amount to EUR 0.1 billion (+4.7%).
Commitments: EUR 7.3 billion, +7.3%; Payments: EUR 8.1 billion, +10.4%
The administrative costs of all EU institutions will amount to EUR 7.3 billion, corresponding to 6% of the total commitments in the budget. Enlargement from 15 to 27 Member States, as well as the increase from 11 official languages in 2003 to 23 in 2007 and the management of a larger spending volume over the period 2007-2013 have been important factors influencing the workload and staffing requirements of the institutions.
Commitments: EUR 7.3 billion, +4.4%; Payments: EUR 7.3 billion, 4.4%
6. Compensation for Bulgaria and Romania
As agreed in the accession treaties, Bulgaria and Romania will receive EUR 0.2 billion as compensations to new Member States to ensure that they retain a positive budgetary balance during the first years of accession.
For more information see:
——————————————————————————– Excluding the amounts allocated in 2007 from the Solidarity Fund and for transition measures to Bulgaria and Romania