A record increase of spending for programmes strengthening the sustainable growth, competitiveness and cohesion of the European economy – the first yearly budget of the new Financial Framework 2007-13 translates better the Union’s political priorities into budgetary figures.
“The new Financial Framework becomes a new financial reality from now on”, said Dalia GrybauskaitÄ—, Commissioner for Financial Programming and Budget, after today’s adoption of the 2007 budget by the European Parliament. “Once implemented, the new budget will give the significant boost to innovation, transport, education and training programmes bringing concrete improvements which should benefit many people across the Union. It is an undeniable proof of the changes in European thinking and should pave the way – in future – to the further modernisation of EU finances”.
The adopted budget amounts to EUR 126.5 billion in commitment appropriations[1], an increase of 5.0% comparing to 2006. It corresponds to 1.08% of the EU Gross National Income (GNI).
The payment appropriations will amount to EUR 115.5 billion, or an increase of 7.6% in nominal terms. It represents a level of only 0.99% of EU-27 GNI.
The new financial rules, agreed together with 2007 budget, will simplify access to EU funding, cut red tape particularly for small scale beneficiaries while improving transparency – the public all over Europe will soon be able to know who receives EU funds in regional and agricultural policies.
1. Competitiveness and cohesion: Building Europe’s growth potential and fostering prosperity across EU regions
Transforming the EU economy into a knowledge-based economy requires extensive investment in education and training (Lifelong learning programme), research (7th research framework programme), innovation (Competitiveness and innovation programme – CIP), as well as transport and energy networks (TEN-Transport and TEN-energy). In 2007, the EU budget will allocate, among others, EUR 5.5 billion to research (+3.1% from 2006), EUR 1 billion to energy and transport networks (+32.9%) and EUR 0.9 billion to education and training (+31%). Funds for innovation will increase by 53,6% to reach EUR 0.4 billion.
Nearly EUR 45.5 billion (+14.8%) will be available to the EU’s less prosperous regions to complement their efforts to reduce development disparities within EU regions. Of this total, EUR 35.3 billion financed through the European Regional Development Fund and partly from the Cohesion Fund (+16.8%) will be disbursed under the convergence objective to the least developed regions in the EU-27.
Commitments: EUR 54.9 billion, +15.4%
2. Natural Resources: Modernising agriculture, stronger rural development and clean environment
In accordance with the reform of the Union’s agriculture, the total amount for direct aids and market measures will remain roughly stable (+0.6%) in 2007 at EUR 42.7 billion in commitments. Rural Development expenditure, however, will see a boost of 3% to reach EUR 12.4 billion in commitments. Funds for the protection of the environment will also grow considerably – by 17.9% in commitment terms, amounting to more than EUR 0.2 billion.
Â
Commitments: EUR 56.3 billion, +1.0 %
3. Citizenship, Freedom, Security and Justice
The EU support in the field of freedom, security and justice will grow by 12.8% to reach a total of over EUR 0.6 billion. The allocations for Citizenship, including culture, youth and public health, will amount to some EUR 0.6 billion, a level comparable to 2006.
Commitments: EUR 1.2 billion, +6.5%
4. The EU as a Global Player: Stability, peace and prosperity
beyond our borders
Aid for the candidate countries and potential candidates in the Western Balkans will be gathered under one single pre-accession instrument. Taking into account the accession of Bulgaria and Romania, the total amount available for the remaining candidates and potential candidates will increase considerably – by 6.5% to reach EUR 1.2 billion.
A total of EUR 1.4 billion (+11,1%) will be used in fostering development in the neighbouring countries to east and south. For all other developing regions (ACP, Asia and Latin America), the EU budget foresees EUR 2.2 billion in commitments. This amount is somewhat lower than in 2006, which was marked by the EU’s exceptionally high contributions to reconstruction efforts in the tsunami-hit areas, Iraq and Afghanistan, but long term support to developing regions is in fact increasing.
Commitments: EUR 6.8 billion, +4.5%
The compensations, foreseen in the accession treaties to ensure that new Member States retain a positive budgetary balance during the first years of accession, are fixed at EUR 0.4 billion, only for Bulgaria and Romania. The EU-10 will no longer benefit from these compensations in 2007.
The administrative costs to all EU institutions will amount to EUR 6.9 billion, corresponding to 5.5% of the total commitments in the budget.
Â
