Brussels, 22/09/2009 (Agence Europe) - On Tuesday 22 September, the European Commission presented the financial report on the 2008 EU budget (the second budget of the Union enlarged to 27 members and the second financial framework 2007-2013). The report shows how a record 40% of the 2008 budget's €116.5 billion was invested in measures linked directly to jobs, growth and competitiveness, for example the €6 billion for new research projects (€0.5 billion more than in 2007). Farm payments continued to fall accounting for 37% of funds, marginally less than 2007. The main beneficiaries remained the same as in 2007.
Spending per heading. In 2008, total spending by the EU amounted to €116.5 billion in payment appropriations, i.e. 2.3% more than in 2007. The total volume of the EU budget 2008 represented 0.94% of Gross National Income (GNI) of the EU27. Out of this total, €45.6 billion were allocated to growth and employment (research, trans-European networks and cohesion policy), i.e. 40% of the total budget. Spending on agriculture (market expenditure and direct payments) represented €43.3 billion, i.e. 37% of the total budget executed. The same year, 10% of EU funds (€11.5 billion) were spent in favour of rural development, fisheries and the environment, and 5% (€6.2 billion) was allocated to external action. The Commission notes that in 2008 50% more was paid for measures devoted to growth (such as €1 billion for launching Galileo and €1 billion for the Erasmus programme). Also, the EU budget released €49 million under the Globalisation Adjustment Fund (workers from the textile and motor industry made redundant in Spain, Italy, Portugal and Malta), €273 million under the EU Solidarity Fund (forest fires and floods), €1 billion in humanitarian aid (to the benefit of 120 million people in Africa, Asia, Middle East, Caucasus, etc.), and €250 million for security and surveillance missions especially in Kosovo, Georgia and Afghanistan.
Breakdown per member state. In absolute terms, France was the main recipient of EU spending in 2008 (as in 2007), with 13.1% in total. It comes ahead of Spain (11.5%), with Germany keeping the third position (10.7%), Italy the fourth and Greece the fifth. Poland, which currently receives major EU funding in farm and cohesion payments, holds sixth position (as in 2007). The United Kingdom ranks 7th, with €3.8 billion in farm aid and €2.1 billion in cohesion payments, while at the same time benefiting from a €6.3 billion rebate or reduction in the UK contribution to the EU budget.
Over 90% of Community budgetary resources, i.e. €105 billion, were spent directly on the ground in the 27 EU countries. The combined share of the four largest recipients has decreased, going from nearly 48% to 45% (€47.3 billion). On the other hand, the share of the 12 new EU countries has continued to rise to reach 19% (€19.7 billion), of which €7.6 billion for Poland.
In relative terms, that is, by calculating the ratio between EU spending breakdown and GNI, Luxembourg is in the lead with a ratio of 4.87% of GNI (which can be explained by the major share of the country's administrative spending) ahead of Greece (3.64%) and Lithuania (3.62%). Bulgaria comes fourth (2.89%) after being 9th in 2007.
Breakdown per heading and per member state. Data confirms that France is the main recipient of agricultural support in absolute terms (€10.01 billion) in 2008. It receives 19.2% of total agricultural spending, ahead of Spain (13.6% of the funds), Germany (12.7%), Italy (10.4%) and the United Kingdom (7.3%, or €3.8 billion). As the leading recipient among EU12 member states, Poland received €2.6 million (5.1%). With the sum of €4.71 billion (13.3% in total), Greece was the main recipient in 2008 for EU spending relating to structural funds and cohesion (Spain came first in 2007), ahead of Poland (4.6 billion), Spain (12%), Italy (10.4%), Germany (8.7%) and Portugal (7.2%).
Non-repayable funds. In 2008, over half of the member states did not fully exploit the EU structural and cohesion funds allocated to them in the previous planning period (2000-2006). Any commitment made for which payment is not requested within two years is lost (rule n+2). The overall amount lost by the member states in this way is slightly on the increase, going from €227 million in 2007 to €267 million in 2008. (L.C./transl.jl)