Draft general budget for 2010
In July 2010 the Council adopted the draft budget for 2010 with a total of 138 billion Euros. The budget for Citizenship,’ which covers not only public health but also culture, media, and consumer protection, amounts to less than 0.5% of the total budget.
EU budget for 2010
Preliminary draft budget
The Commission adopted a EUR 139bn preliminary draft budget (PDB) for 2010.
The heading ’Citizenship’ includes culture, media, public health and consumer protection.
Draft budget by the Council
On 10 July 2009, the Council unanimously agreed in first reading on the EU’s draft general budget for 2010.
The draft budget 2010 amounts to:
EUR 137.944 billion in commitment appropriations, leaving a margin of EUR 2.4 billion under the total ceiling of the financial framework; and
EUR 120.521 billion in payment appropriations, corresponding to 1.02% of the Gross National Income of the EU.
According the the European Council’s conclusions, "These figures reflect the wish of the Council to strike a sound balance between targeted cuts in some areas and the financing of political priorities such as measures stimulating growth and employment against the background of the current economic and financial crisis."
The reductions in the appropriations compared to the amounts requested in the preliminary draft budget of the Commission amount to:
-EUR 612.90 million in commitments; and
-EUR 1.795 billion in payments.
Compared with the 2009 budget, the draft budget 2010 represents a 3.06% increase in commitment appropriations and a 3.81% increase in payment appropriations.
The Commitment for ’Citizenship’ amounts to EUR 634 128 000. It corresponds to less than 0.45% of the total budget and a decrease of 2.59% compared to the 2009 budget.
Next steps
7-18 December: UN Climate Change conference in Copenhagen. The EU’s position may have financial implications.
14-17 December: adoption by the European Parliament of the 2010 budget.
Background: the budgetary procedure
The Commission, the Parliament and the Council conclude an ‘interinstitutional agreement’ establishing a seven-year long financial framework. The objective of this binding agreement is to ensure budgetary discipline, long-term planning and to enhance cooperation in connection with annual budgets. All annual budgets must respect annual upper limits per heading.
The annual budgetary procedure can be split into three steps, each of them leading to the adoption of a specific document:
1/ Establishment of the preliminary draft budget (PDB)
In November/December of year-2, a policy orientation debate is held within the Commission and in February of year-1 the Commission adopts an annual policy strategy decision which establishes the policy priorities for the coming financial year.
In April, a trialogue meeting is held in April between the European Parliament, the Council and the Commission in order to discuss budget priorities.
The Commission establishes the PDB in May and places it before the Council by 15 June at the latest.
2/ Establishment of the draft budget by the Council
The Council must examine the PDB and establish the draft budget between 1 September and 5 October.
In parallel to that reading, an ad hoc conciliation procedure results in a trialogue meeting between the President of the Council (Budgets), the Chairman of Parliament’s Committee on Budgets and the Commission member with responsibility for the budget, and in formal conciliation between the Council, a Parliament delegation and a Commission representative.
The Council adopts, by a qualified majority, the draft budget by 31 July at the latest and sends it to Parliament in the first two weeks of September.
3/ ‘Toing and froing’ between Parliament and Council, which results in the adoption of the budget
The EP undertakes the first reading. If the EP does not approve it, the Council examines Parliament’s proposals and sets the compulsory expenditure on which it has the final word [1].
At its second reading, the EP is to set non-compulsory expenditure and to adopt the budget. The President of the EP formally declares the budget enforceable. However, the Parliament has the right to reject the entire budget and to ask for a new draft to be submitted to it.
For further information
Conclusions of the ECOFIN Meeting on 10 July
EPHA related articles
Footnotes
[1] Compulsory expenditure covers all expenditure resulting from international agreements and the EU treaties
Related documents
Credits
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