Multiannual nature
The EU budget, unlike national budgets, has a multiannual nature and is based on a multiannual financial framework (MFF). The MFF is an expression of long term EU political priorities as it determines how much the EU may spend over a period of seven years: in total and in different areas.
The MFF 2014-20 allows the European Union to invest around EUR 1 trillion which is about 1% of EU GNI. It is divided into six categories with a clear focus on supporting economic growth and job creation. About 94% is invested in various programmes in the EU and beyond, while only 6% goes on administration.
What was the EU Budget 2015 spent on?
The 2015 EU budget set the total of annual payments at EUR 141 billion. Most of the money was invested in projects for economic growth, jobs, competitiveness, cohesion and agriculture. Funding for education, training, small- and
medium-sized enterprises and research was increased, as well as the amounts invested in global action, security, EU neighbourhood and humanitarian aid.
Sustainable growth: natural resources 38.9 %
Competitiveness for growth and jobs 13.1 %
Global Europe 6.1 %
Security and citizenship 1.6 %
Administration 6.4 %
Smart and inclusive growth 47 %
Economic, social and territorial cohesion 33.9 %
Focu
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n growth and job creation
MFF 2014-2020 Overview
Health
Jobs
Skills
Development
Naturalresources
Security
GrowthEducation
Inno
vatio
n
Ener
gy
New
Tec
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ogie
s
EnvironmentCohesion
Hum
anita
rian
aid
Research
InfrastructureKey features of the EU Budget
INTEGRATED FINANCIAL REPORTING PACKAGE 2015
Who decides on the budget?The MFF is proposed by the European Commission and must be adopted unanimously by the Member States in the Council after obtaining the consent of the European Parliament. The current MFF will be reviewed before the end of 2016 taking account of the economic situation and the latest macroeconomic forecasts.
The decision-making procedure for each annual EU budget is similar to most national budgets as it is decided by European citizens’ democratically elected representatives in the Council and the European Parliament.
Who executes the budget?80% of the EU annual budget, invested in cohesion policy and agriculture, is managed by the Member States in so-called shared management. The European Commission has an important supervisory function, but the Member States are the ones primarily responsible.
The European Commission or one of its agencies directly manages other EU programmes. This involves selecting contractors, awarding grants, transferring funds and monitoring activities.
How do we know if the EU Budget was spent according to the rules and delivered results?The EU budget is under constant tight scrutiny. Each Member State is required to provide detailed information on how it uses the funds. The Commission takes the overall political responsibility, presents EU accounts, reports annually on the implementation of the budget and results achieved. The Commission is held accountable on the use of EU taxpayers’ money through the ‘Discharge procedure’.
The European Court of Auditors (‘ECA’) audits these accounts each year in order to provide an opinion on their reliability. The ECA has given a clean opinion on all the
accounts prepared by the Commission since 2007.
The European Parliament and the Council scrutinise the management of EU funds on the basis of various reports from the Commission and the Court. The ´Discharge procedure´ is finalised with a vote of the European Parliament to grant the discharge to the Commission (i.e. releases the Commission of its responsibilities in managing the budget of that year). The entire process is fully transparent to the public and enables European citizens to follow how the money from the EU Budget is managed and invested.
The Commission proposes a draft budget
Agreement reached
Annual budget approved
The Member States in the Council examine the draft and express opinion
The European Parliament examines the draft and expresses opinion
NEGOTIATIONS }{
Dischargeto the Commission
Votein the Parliament
Recommendationby the Council
The European Courtof Auditors audits
The Commissionreports
Conclusionsin Annual report
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