How the EU is spending its budget in 2016

 

SUMMARY OF:

Definitive adoption (EU, Euratom) 2016/150 of the EU’s general budget for the financial year 2016

WHAT ARE THE MAIN AIMS OF THE EU BUDGET?

• The EU budget contributes to implementing EU policies in a wide range of fields, such as:
  • economic growth and employment;
  • new infrastructure such as roads, railways and airports;
  • agriculture, climate action and a better environment;
  • aid to pre-accession countries and neighbouring countries;
  • more secure external borders.
• It also contributes to humanitarian assistance throughout the world and offers opportunities for young people to study abroad.

In order to finance projects in these and other areas, the EU budget is defined on the basis of a multiannual financial framework (MFF) covering a 7-year period. The 2016 budget is the third annual budget falling under the 2014–2020 MFF.

KEY POINTS

The 2016 budget comprises:

• commitment appropriations * set at € 155 billion, a reduction of 4.5 % compared to 2015, leaving a margin below the MFF ceilings for 2016 of € 2.331 billion in commitment appropriations;
• payment appropriations * set at €143.885 billion, an increase of 1.8 % compared to 2015.

Planned spending by budget heading

• 1.

  Heading 1—Smart and inclusive growth: allocated € 69.841 billion in commitments and € 66.262 billion in payments. It is subdivided as follows.

  • 1a — Competitiveness for growth and jobs: commitments are set at € 9.01 billion for programmes such as Horizon 2020, COSME, ERASMUS+, the Connecting Europe Facility or the European Fund for Strategic Investments. Payments are set at € 17.4 billion — almost 11 % higher than in 2015.
  • 1b — Economic, social and territorial cohesion: commitments decreased by 15.8 % compared to 2015 (because the 2015 amount was increased by 2014 funds reassigned to 2015). Commitments have been set at € 50.8 billion. Payments amount to € 48.85 billion. This heading includes spending on the EU’s Structural and Investment Funds and a contribution to the Connecting Europe Facility.

• 2.

  Heading 2—Sustainablegrowth,natural resources: this heading has commitments set at €62.5 billion, of which €42.2 billion are available for market expenditure and direct aids to farmers. The LIFE programme for environment and climate change also falls under this heading. Payments are set at €42.2 billion. Both commitments and payments for this heading have fallen by 2.8 % compared to 2015.

• 3.

  Heading 3—Security and citizens: this heading has seen an increase of some 60.7 % compared to 2015, with €4.05 billion to address the migration crisis. Besides the migration- and security-related programmes (the Asylum, Migration and Integration Fund and the Internal Security Fund), this heading also includes the EU justice programme and other policies like citizenship with the Europe for citizens programme and culture (Creative Europe). Payments amount to €3.02 billion, showing an increase of 56.8 % over the 2015 figure.

• 4.

  Heading 4 — Global Europe: this heading amounts to €9.16 billion in commitments and includes programmes such as the Pre-Accession Instrument, the European Neighbourhood Instrument, the Instrument for Development Cooperation, the European Instrument for Democracy and Human Rights and the Stability and Peace Instrument. It also funds humanitarian aid. Commitments have also been increased to fund humanitarian aid to assist asylum seekers. The heading shows an increase of 5.2 % compared to 2015 in terms of commitments. Payments amount to €10.15 billion — an increase of around 36 % compared to 2015.

• 5.

  Headings5 and 6—Administration: the level of commitments and payments is set at €8.9 billion. This funding covers the expenditure of the EU institutions.

FROM WHEN IS THE EU’S 2016 BUDGET IMPLEMENTED?

It is implemented between 1 January and 31 December 2016.

BACKGROUND

For more information, see:

• ‘Budget’ on the European Commission's website
• Budget glossary on the European Commission’s website.

* KEY TERMS

MAIN DOCUMENT

Definitive adoption (EU, Euratom) 2016/150 of the European Union’s general budget for the financial year 2016 (OJ L 48, 24.2.2016, pp. 1-2283)

Corrigendum to the definitive adoption (EU, Euratom) 2016/150 of the European Union's general budget for the financial year 2016 (OJ L 53, 1.3.2016, pp. 24–25)

last update 15.12.2016