EU as a global player 6.4 % Administration 5.6 % Citizenship, freedom, security and justice 1.4 % Natural resources: rural development, environment and fisheries 10.7 % Sustainable growth 46.8 % Natural resources: market-related expenditure and direct aids 29.1 % EU budget 2013: investing in growth and jobs Pocket notebook
Europe Direct is a service to help you find answers to your questions about the European Union Freephone number (*): 00 800 6 7 8 9 10 11 (*) Certain mobile telephone operators do not allow access to 00 800 numbers or these calls may be billed. Photo credits: Photodisc/Getty Image, page 2; European Union, page 3; Phovoir, page 4; Digital Vision/Getty Image, page 5; MEV Verlag GmbH, page 6; [2013] Jupiterimages Corporation, page 7; istockphoto.com/vilainecrevette, page 9; GlowImages, pages 11, 12. More information on the European Union is available on the Internet (http://europa.eu). Luxembourg: Publications Office of the European Union, 2013 ISBN 978-92-79-26435-1 doi:10.2761/31798 European Union, 2013 Reproduction is authorised provided the source is acknowledged. Printed in Luxembourg Printed on white chlorine-free paper
Preface This pocket publication provides an overview of the 2013 EU budget which was adopted in December 2012. The figures are presented according to the various fields of expenditure (the so-called headings of the 2007 13 multiannual financial framework), along with relevant examples of what the money is spent on. This should help the reader understand the role of each EU programme and its impact on the daily lives of European citizens, and many outside the EU. Though relatively small in size, representing a mere 1 % of the Union s wealth, the EU budget is an important tool in achieving the goals of European integration. Practically every EU citizen benefits from the EU budget in one form or another, at the local, national and European level: Erasmus, student mobility, safer products, new and better roads, clean environment, EU border security are just a few examples of where the EU budget makes a difference. In 2013, the EU budget will focus on two major priorities: enhancing economic growth and job creation, which can only be achieved next to fiscal consolidation through investment in future growth. The EU budget complements national efforts aimed at meeting this objective by investing in the priority areas defined in the Europe 2020 strategy, which was adopted by all EU Member States. The 2013 EU budget takes into account the difficult economic context and pressure on national budgets. It freezes future expenditure and includes a strong emphasis on savings and cost efficiency. As 2013 is the last year of the current multiannual financial framework, the budget has to include the payments for programmes which are going to be finalised. These contributions are essential for many Member States, as they cover key infrastructure projects. To reflect the forward-looking nature of the EU budget, part of this publication is devoted to the Europe 2020 strategy. It then describes the main areas of expenditure as well as the sources of the EU budget in more detail. The reference to the multiannual financial framework provides an important link between the long-term financial programming and the annual budgets. A page dedicated to the new financial rules gives basic information about the way the EU budget is managed. The project presented at the end of this publication then offers a specific example of how the money from the EU is spent. The amounts mentioned in this publication represent expenditure estimates for EU policies expressed in commitment appropriations, which are legal pledges to provide finances, provided that certain conditions are fulfilled. Only then can payments as cash or bank transfers to the beneficiaries be made. 1
Budget 2013: serving the Europe 2020 strategy Europe 2020 is the European Commission s driving strategy which focuses on getting Europe s economy back into growth. In order to achieve this goal, the EU budget provides smart, sustainable and inclusive growth through seven flagship initiatives (mechanisms) that cover key fields. A recent review showed that the forthcoming 2014 20 multiannual financial framework should allow for more focus on the Europe 2020 objectives across the EU budget as a whole. The 2013 EU budget is an essential step on the way to reaching these goals. In 2013, EUR 64.5 billion is directly linked to the Europe 2020's flagships, an increase of 2.7 % over 2012. The total amount supporting the 2020 flagship initiatives is higher than that, as EU funding for regional and rural development policy and trans-european network (TEN) projects are co-financed by Member States, regions and/or private operators. More information: http://ec.europa.eu/europe2020/ 2
1. Sustainable growth Competitiveness for growth and employment Competitiveness for growth and employment is the key action of the drive to turn the EU into a smart, sustainable and inclusive economy, delivering high levels of employment, productivity and social cohesion. EUR 16 billion has been allocated under this budget heading, which includes major programmes such as the seventh framework programme for research and technological development (FP7), the lifelong learning programme, the competitiveness and innovation programme (CIP) and the trans-european networks (TENs). Other actions concern the internal market, statistics, financial services and supervision, taxation, the customs union and the fight against fraud. Cohesion for growth and employment The Structural Funds, i.e. the European Regional Development Fund (ERDF), the European Social Fund (ESF) and the Cohesion Fund (CF), contribute to making Cohesion for growth and employment a reality in Europe. The Structural Funds will benefit from EUR 42.1 billion in 2013, while the Cohesion Fund projects have a budget of EUR 12.4 billion. Following a decision by the European Council, money that is not allocated under the Structural Funds may be used by the Member States to reinforce their efforts to address youth unemployment and support small and medium-sized enterprises (SMEs). Did you know that these funds help strengthen economic, social and territorial cohesion between regions and the EU Member States and they support competitiveness and employment? They also encourage cross-border, transnational and interregional cooperation. For example, the ESF supports employment opportunities by focusing on labour mobility and workers adaptation to industrial changes. 3
2. Preservation and management of natural resources Most of the European territory is covered by land and forests. Agriculture contributes to their sound economic management. The sustainable use of land and forests is essential to the preservation of rural economies, landscapes and the environment. It is also a key precondition for tourism, which is an important economic activity in rural areas. Compared to 2012, the budget allocated under this heading has increased by EUR 332 million, making a total of EUR 60.3 billion in 2013. This amount covers market-related expenditure and direct aids, support for rural development, maritime affairs and fisheries, environment and climate action, as well as other actions and programmes. Climate action is a key priority for the European Union, which continues to be in the lead in terms of actions aiming at saving our planet. A relevant example is the LIFE+ programme, which has received a budget of EUR 366.6 million for 2013. This money will support measures relating to resource efficiency. The purpose is to enhance nature protection and biodiversity, reduce waste production and greenhouse gas emissions, develop clean technologies and improve air quality management. Did you know that for 2013, the EU has allocated EUR 1.3 billion for European research into the food industry, agriculture, fisheries, biotechnology, nanosciences, nanotechnologies, materials and new production technologies? 4
3. Strengthening the EU as an area of freedom, security and justice Freedom, security and justice The EU will devote EUR 1.4 billion to supporting activities and projects in the following areas: solidarity and management of migration flows, fundamental rights and justice, security, and safeguarding liberties. The EU has allocated a budget of EUR 53.7 million to the area of prevention of and fight against crime, which targets law enforcement, cross-border cooperation, information exchange and training among law enforcement authorities, as well as the protection of witnesses and victims. Did you know that a budget of EUR 36.7 million has been allocated to the costs of the entry into operation of the Schengen information system (SIS II), which is planned for the first half of 2013? Citizenship The EU budget contributes to several Europe 2020 strategy flagship initiatives, including Youth on the move, An agenda for new skills and jobs, European platform against poverty and Innovation Union. In particular, an amount of EUR 707.1 million will cover programmes which are of key concern to the European citizens: access to basic goods and services, fostering European culture and diversity, civil protection, communication with citizens, MEDIA 2007 and other actions and programmes. Did you know that 2013 is the European Year of Citizens? It will promote activities highlighting the right to free movement and residence, in order to strengthen the sense of belonging of people within the European Union. 5
4. EU as a global player In order to promote stability, security and prosperity in its neighbourhood, the EU finances a number of activities beyond its borders. It also carries out crisis management and peacekeeping missions in many parts of the world. In 2013, EUR 9.6 billion will be available to finance the Instrument for Pre-Accession Assistance (IPA), the European Neighbourhood and Partnership Instrument (ENPI) and the Development Cooperation Instrument (DCI), to name a few. Did you know that the Spring programme (support for partnership reform and inclusive growth) supports the countries of the Arab spring that show genuine commitment to democratic reforms? The Commission continues to place special emphasis on the application of the principles laid out in the Organisation for Economic Cooperation and Development (OECD) Paris declaration of 2005 on aid effectiveness. To ensure this, the Commission pays extra attention to assisting developing countries in setting out their poverty reduction strategies, improving their institutions and tackling corruption, aligning other donors to these objectives, harmonising and simplifying donor procedures, focusing on measuring results, and enhancing donor and partner accountability. 6
5. Administration In 2013, the total expenditure for administration for all European institutions is estimated at EUR 8.4 billion. It represents a mere 6 % of the whole EU budget, while the remaining 94 % goes to citizens, students, NGOs, and regional and local authorities in EU Member States and beyond. In a context where rigorous cuts and maximum efficiency are demanded of most public administrations, the Commission is firmly committed to acting responsibly in this respect. The 2013 EU budget incorporates a 1 % reduction in staff levels and constitutes part of the Commission s endeavour to reduce staff by 5 % in all EU institutions over 5 years, without prejudice to a limited request for additional staff in order to cope with the expected accession of Croatia to the EU on 1 July 2013. All new activities not linked to enlargement will be covered through efficiency gains and redeployment. Did you know that the European institutions are making savings in the following areas: meetings, committees and conferences, mission and representation costs, studies, social expenditure, linguistic external services, general equipment, training, acquisition of information, publications and expenditure for mobility? 7
Where does the money come from? The budget of the European Union is financed by own resources customs duties, resources based on value added tax (VAT) as well as gross national income (GNI) and other revenue. Custom duties and sugar sector levies 14.1 % VAT-based resources 11.3 % Other revenue 1.2 % GNI-based resource 73.4 % When the Parliament and the Council approve the annual budget, total revenue must equal total expenditure. The total amount needed to finance the budget follows automatically from the level of total expenditure. In practice, however, actual revenue and expenditure often differ from the estimates. There is usually a surplus, which is used to reduce Member States contributions to the budget for the following year. Revenue, other than own resources, includes: tax and other deductions from EU staff remunerations; bank interest; contributions from non-member countries to certain EU programmes (e.g. research); repayments of unused EU financial assistance; interest on late payments and fines; the surplus from the previous exercise. 8
The EU budget in your country The annual EU budget focuses on the needs of Europeans as a whole. We all benefit from this pooling of money in areas where working together makes sense. This is the reason why the European Union finances projects across a wide range of fields from research and education to environment, humanitarian aid and many others. The financial support is provided through grants to public and private organisations (in exceptional cases also to individuals) for implementing the projects. In order to be able to finance such welfareincreasing activities, all Member States contribute to the common EU budget. The allocated money is then spent on areas of common interest, thanks to enhanced coordination and collaboration of the Member States and the EU institutions. EXAMPLE The EcoJel project http://www.jellyfish.ie/ EcoJel is a collaborative project between Swansea University (Wales) and University College Cork (Ireland). The purpose of the project is to assess the opportunities and detrimental impacts of jellyfish in the Irish Sea. 9
EU budget 2013 in figures Expenditure estimates for EU policies in commitment appropriations Budget 2013 (billion EUR) Change from 2012 Sustainable growth 70.6 3.7 % Competitiveness for growth and employment, including: 16.1 4.8 % Seventh research framework programme 10.9 6.4 % Lifelong learning and Erasmus Mundus 1.3 2.0 % Trans-European network (TEN) projects 1.4 6.3 % Competitiveness and innovation framework programme 0.7 9.6 % Social policy agenda 0.2 1.6 % Cohesion for growth and employment, including: 54.5 3.3 % Structural Funds 42.1 2.9 % Cohesion Fund 12.4 4.8 % Preservation and management of natural resources 60.1 0.5 % Market-related expenditure and direct payments, including: 44.0 0.1 % Agriculture markets 43.7 0.1 % Fisheries markets 0.03-10.7 % Animal and plant health 0.3 1.6 % Rural development 14.8 1.4 % Fisheries 0.9 4.6 % Environment and climate change 0.4 3.3 % Rural development, environment and fisheries 16.1 1.6 % Citizenship, freedom, security and justice ( 1 ) 2.1 2.0 % Freedom, security and justice 1.4 2.3 % Citizenship, including: 0.7 1.4 % Public health and consumer protection 0.1 1.8 % The EU as a global player ( 2 ), including: 9.6 1.9 % Instrument for Pre-Accession Assistance 1.9-0.1 % European Neighbourhood and Partnership Instrument 2.5 6.3 % Development Cooperation Instrument 2.6 2.2 % Humanitarian aid 0.9 1.9 % Democracy and human rights 0.2 0.5 % Common foreign and security policy 0.4 9.2 % Instrument for Stability 0.3 5.2 % Administration, including: 8.4 1.8 % European Commission 3.3 0.3 % Other institutions 3.5 1.8 % Total 150.9 2.1 % ( 1 ) Excluding the European Union Solidarity Fund. ( 2 ) Including the Emergency Aid Reserve. 10
Multiannual financial framework The multiannual financial framework (MFF) is a structure for multiannual programming, which translates the Union s policy priorities into financial terms over a period of at least 5 years. It sets maximum annual amounts for broad categories of expenditure called headings. The annual budgetary procedure must respect these maximum amounts. The MFF ensures budgetary discipline and predictability of EU expenditure. The current financial framework covers the 7-year period 2007 13. The new financial framework starts in 2014, and is planned for a period of 7 years. It is also intended to respond to the EU s long-term priorities, notably to the Europe 2020 strategy. With a high European added value, the next MFF will be an ambitious but realistic tool for macroeconomic stabilisation and solidarity within the European Union. Simpler, more flexible and transparent, this longterm financial plan will respond to new policy priorities and deliver results through a number of innovative financial instruments. More information: http://ec.europa.eu/budget/mff 11
Connecting Europe Facility The Connecting Europe Facility (CEF) has been proposed by the Commission for the next MFF as a new instrument to improve Europe's transport, energy and digital networks and better connect people in Europe. 12
New financial regulation: easier access to EU funding The financial regulation is the main document containing EU financial rules. It sets out the principles of the EU budget and governs the way the EU budget is spent. The newly adopted regulation, which came into effect on 1 January 2013, enables EU funding beneficiaries businesses, NGOs, researchers, students, municipalities and others to follow easier, clear rules and simple procedures. What s new? 1. Specific improvements to focus more on results: no obligation to open separate bank accounts; speeding up payments to beneficiaries (30, 60 or 90 days depending on the complexity of the deliverables); easier procedures (using lump sums and flat rates) for smaller amounts; less paperwork. 2. Increased accountability: the new rules will increase the accountability of Member States, especially in regional policy; national authorities will have to sign and submit annual declarations certifying that EU funds have been used properly. 3. Strengthening control: when irregularities occur, mechanisms for financial corrections will be triggered and the Commission will publish decisions imposing penalties for misuse of EU funds. 4. Flexibility: various financial instruments loans, equity or guarantees will be used to multiply the financial impact of EU funds; new possibilities will be created for public private partnerships (PPPs). 5. Pooling resources together: the EU will be able to create EU trust funds pooling its own resources with those of its Member States and other donors in order to better coordinate and deliver external aid and increase its visibility. 13
Calendar 2013 January Mo Tu We Th Fr Sa Su 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 March Mo Tu We Th Fr Sa Su 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 May Mo Tu We Th Fr Sa Su 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 July Mo Tu We Th Fr Sa Su 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 September Mo Tu We Th Fr Sa Su 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 November Mo Tu We Th Fr Sa Su 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 February Mo Tu We Th Fr Sa Su 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 April Mo Tu We Th Fr Sa Su 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 June Mo Tu We Th Fr Sa Su 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 August Mo Tu We Th Fr Sa Su 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 October Mo Tu We Th Fr Sa Su 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 December Mo Tu We Th Fr Sa Su 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
KV-30-12-856-EN-C Find out more about the EU s financial programming and budget by visiting our website regularly: http://ec.europa.eu/budget If you want to be informed about any of our publications and get the latest publications news, please subscribe by sending an e-mail to: BUDG-budget-inbox@ec.europa.eu Follow us on: Facebook: https://www.facebook.com/eubudget Twitter: https://twitter.com/eu_budget/