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Europe Daily Bulletin No. 10043
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GENERAL NEWS / (eu) ep/2010 budget

EP formally endorses EU's budget for 2010

Brussels, 17/12/2009 (Agence Europe) - In plenary on Thursday 17 December 2009, the European Parliament formally indorsed the EU's general budget for 2010, which includes €2.4 billion for the second phase of the European Economic Recovery Programme and €300 in emergency aid for EU dairy farmers struggling due to a fall in the price they get for their milk.

The EP agreed to the EU having a budget in 2010 of €141.45 billion in commitment appropriations (equivalent to 1.2% of EU gross national income (GNI)) and €122.93 billion in payment appropriations (equivalent to 1.04% of EU GNI). This is a 3.6% rise in commitment appropriations on the 2009 budget.

Adopting a report by László Surján (EPP, Hungary) and Vladimír Maòka (S&D, Slovakia) on the EU's general budget for 2010, the EP points out that there is very little room for manoeuvre sin all headings for 2010 and this might cause problems in the event of unexpected events requiring EU funding in 2010.

The European Economic Recovery Programme. The EP also adopted two reports by Reimer Böge (EPP, Germany) on the 2010 budget. The first was voted through by 544 to 18 with 14 abstentions. It indorses the decision to take €195 million in commitment appropriations from the 'Flexibility Instrument' and to use €120 million of it to provide funding for energy projects under the European Economic Recovery Programme, and €75 million to decommission the Kozloduy nuclear power plant in Bulgaria. The second report was voted through by 536 to 18 with 22 abstentions. It indorses the changes to the 2007-2013 budget to increase the upper limit of commitment appropriations in Sub-heading 1a (Growth) by €1.779 billion in the 2010 financial year to help fund the European Economic Recovery Programme. This increasing in 1a cash in 2010 will be offset by a reduction in the upper limits for commitment appropriations under a series of headings in the 2009 and 2010 tax years.

Details of the 2010 budget:

1a Competitiveness: €14.8 billion in commitment appropriations (€11.3 billion in payment appropriations). The budget for the EU's seventh framework R&D programme is 11.7% bigger than in 2009 at €7.5 billion. There is a 12.7% increase (compared with the 2009 budget) for trans-European energy and transport networks to €1.1 million.

1b Cohesion: €49.4 billion in commitment appropriations (€36.4 billion in payment appropriations). The trend of allocating more EU funding to new Member States (joining in 2004 and 2007) is continuing and for the first time, these new Member States will receive the lion's share (52%) of cash from the Cohesion Fund and the EU's Structural Funds. The European Social Fund will have €10.8 billion in 2010. Adopting the Surjan Report, the EP called for 'wiser' use to be made of the cash for Member States' and EU policies to combat climate change.

2 Management of Natural Resources: €59.5 billion (in commitment appropriations) and €58.1 billion (in payment appropriations). Farm spending has been increased by 6.4% to €43.8 billion and rural development cash has been slightly increased to €14.4 billion.

3a Citizenship, Freedom, Security and Justice: €1 billion in commitment appropriations (€739 million in payment appropriations). Managing the flow of immigrants into the EU is a common challenge facing all EU Member States and has therefore been granted 16.2% more EU funding than in 2009. The EU's External Borders Fund has been given €208 million and the European Fund to Integrate People from Outside the EU has been given €111 million. For the first time, the EU's budget will be funding the European Police Office (Europol) to the tune of €80 million.

3b Citizenship: €668 million in commitment appropriations and €659 million in payment appropriations (a 2.8% increase).

4 The EU as a World Player: €8.1 billion in commitment appropriations (€7.7 billion in payment appropriations). EU aid to developing countries under the 'cooperation and development mechanism' will increase by 3.9% to €2.5 billion. There has been a sharp rise in the funding of the EU's common foreign and security policy (up 15.9%) and the 'Stability Mechanism' (up 16.7%.

5 Administration: €7.9 billion in commitment appropriations and payment appropriations (up3.8%). (L.C. trans fl)

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