How the European Union is spending its budget in 2014

The European Union budget contributes to implementing EU policies in a wide range of fields, such as employment, regional development, research and education, environment, humanitarian aid and support to developing countries.

ACT

Definitive adoption of the European Union’s general budget for the financial year 2014 (2014/67/EU, Euratom).

SUMMARY

WHAT IS THE MAIN OBJECTIVE OF THE EU BUDGET?

The European Union budget contributes to implementing EU policies in a wide range of fields, such as employment, regional development, research and education, environment, humanitarian aid and support to developing countries.

In order to finance projects in such areas, the EU budget is defined on the basis of a multiannual financial framework (MFF) covering a 7 year period. The 2014 budget is the first budget of the new 2014-2020 MFF.

KEY PRIORITIES

The EU budget is a key tool for providing smart, sustainable and inclusive growth and solidarity between the EU countries and regions. In this respect, the 2014 EU budget focused on growth and jobs, with specific attention to youth unemployment.

Within the limits of the 2014-2020 MFF (EUR 960 billion in commitment appropriations (see below) for the 7 year period at 2011 prices), the 2014 budget totals an amount of about EUR 143 billion in commitments (current prices).

This budget is split up by area as follows (commitments, current prices).

• 1.

  Smart and inclusive growth: 44.9 % - EUR 63.986 billion, including:

  • competitiveness for growth and jobs: 11.6 % - EUR 16.484 billion;
  • economic, social and territorial cohesion: 33.3 % - EUR 47.502 billion.

• 2.

  Sustainable growth: natural resources: 41.6 % - EUR 59.267 billion (of which market-related expenditure and direct payments to farmers is EUR 43.778 billion).

• 3.

  Security and citizenship: 1.5 % - EUR 2.172 billion.

• 4.

  Global Europe: 5.8 % - EUR 8.325 billion.

• 5.

  Administration: 5.9 % - EUR 8.405 billion (mostly the expenditure of EU institutions).

What is the money spent on?

• growth and jobs to combat unemployment, develop human resources and promote integration in the labour market. The European Social Fund (ESF) is the main tool in that field;
• regional development, mostly financed through the European Regional Development Fund (ERDF) and the Cohesion Fund (CF) for strengthening economic and social cohesion within the EU and reducing development disparities between EU regions;
• rural development and environmental action, mainly through the European Agricultural Fund for Rural Development (EAFRD) for agri-environmental measures and modernisation of agricultural assets;
• agriculture, with the help of the European Agricultural Guarantee Fund (EAGF), one of the instruments of the EU’s common agricultural policy of the EU. Most of the expenditure is on payments to EU farmers;
• external relations and humanitarian aid to give assistance to and promote economic cooperation with Asian, Latin American, African, Caribbean and Pacific or Mediterranean countries;
• other specific policies, such as research with the Horizon 2020 programme and Erasmus+ for the mobility of young people, or action directed at small and medium enterprises (COSME). A specific measure is also created to offer new opportunities to unemployed young people (youth employment initiative).

WHEN IS THE 2014 EU BUDGET IMPLEMENTED?

From 1.1.2014 to 31.12.2014.

BACKGROUND

The EU budget is equivalent to around 1 % of the EU’s economic wealth (gross national income (GNI)). For each year, and within the limits of the MFF, the Commission proposes a budget adopted by the European Parliament and the Council of the EU.

KEY WORDS

• Commitment appropriations: figure in a given budget year that includes money pledged to EU programmes covering several years, but not necessarily paid in that budget year.
• Payments appropriations: amount expected to be actually paid out in that budget year.

For more information, see the European Commission (EC) DG Budget website and the EC Budget glossary.

last update 02.03.2015