EU Budget

The European Parliament adopted the European Union budget for 2007 on 14 December 2006. This first budget of the new financial programming period 2007-2013 devotes more funds to competitiveness and cohesion in EU-27. The 2007 budget will be spent through a new generation of EU programmes and a new set of financial rules, designed to ensure a more effective and transparent use of the EU funds.

The adopted budget amounts to EUR 126.5 billion in commitment appropriations, an increase of 5.0% compared 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.

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 foster prosperity across Europe's regions and boost innovation and competitiveness. 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.

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.

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.

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.