Budget : providing value for money.
Date: 2014-10-30
Institutions: Directorate-General for Communication
Subjects: EU budget, EU financing, European Union, budget policy, budgetary control, general budget (EU), public awareness campaign

T H E   E U R O P E A N  
U N I O N  
E X P L A I N E D

Budget

Providing value 
for money

A  s tr o ng  an d  so un d  bud ge t  m akes   a 
s tr o ng   and  s o un d  Eur o p ean  Un io n .

CONTENTSmatières

Why does the European Union  
have a budget? .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . . 3

How is the EU budget managed? .  .  .  . . 5

What the EU achieves  
with the budget  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . . 7

The EU budget for you  .  .  .  .  .  .  .  .  .  .  . 11

The way ahead for the  
EU budget  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 12

Find out more  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 16

The European Union explained: Budget

European Commission
Directorate-General for Communication
Citizens information
1049 Brussels
BELGIUM

Manuscript updated in November 2014

Cover and page 2 picture: © Tom Grill/Corbis

16 pp. — 21 × 29.7 cm
ISBN 978-92-79-41730-6
doi:10.2775/27936

Luxembourg: Publications Office  
of the European Union, 2014

© European Union, 2014
Reproduction is authorised. For any use or reproduction 
of individual photos, permission must be sought directly 
from the copyright holders.

THE EUROPEAN UNION 
EXPLAINED

This publication is a part of a series that explains  
what the EU does in different policy areas,  
why the EU is involved and what the results are. 

You can find the publications online:
http://europa.eu/pol/index_en.htm

http://europa.eu/!bY34KD

How the EU works
Europe in 12 lessons 
Europe 2020: Europe’s growth strategy
The founding fathers of the EU

Agriculture
Banking and finance 
Borders and security 

Budget
Climate action
Competition
Consumers
Culture and  audiovisual
Customs
Digital agenda 
Economic and monetary union and the euro
Education, training, youth and sport 
Employment and social affairs
Energy
Enlargement
Enterprise
Environment
Fight against fraud
Food safety
Foreign affairs and security policy
Humanitarian aid and civil protection 
Internal market
International cooperation and development
Justice,  fundamental rights and equality 
Maritime affairs and fisheries 
Migration and asylum
Public health
Regional policy
Research and innovation
Taxation
Trade
Transport

Why does the European Union have  
a budget?

3

The EU budget focuses on where European funding 
makes a difference. It funds what would not be funded 
or what would be more expensive to fund from national 
budgets. Many achievements of the EU would not have 
been possible without a common budget. Having one 
EU budget to deal with common challenges is cheaper 
and more effective than tackling them with 28 separate 
ones. The EU’s responsibilities have increased over the 
years and the EU budget now finances a wide range of 
activities in the interest of all EU citizens.

A group of nations sharing common 
objectives needs a budget

Some 94 % of the EU budget is spent on projects in EU 
Member States and beyond. Each of the 508 million 
EU citizens benefits in one way or another from the 
EU budget. It helps millions of students, thousands 
of researchers and cities, and numerous regions and 
non-governmental organisations (NGOs).

94 %
European businesses,
students,
scientists,
regions,
cities,
farmers,
NGOs, etc.

6 %
EU administration

Some 94 % of the EU budget is spent on projects in EU 
Member States and beyond.

The EU budget contributes to healthier and safer food; 
new and better roads, railways and airports; a cleaner 
environment; higher security at the EU’s external 
borders; studying opportunities abroad; and cultural 
exchanges. The EU also brings help and humanitarian 
assistance to people in need all over the globe.

Basic facts and figures

Given the wide range of responsibilities, you may be 
surprised to learn that the EU budget is relatively small. 
It currently represents about 1 % of the EU’s gross 
national income (GNI), while EU Member State national 
budgets constitute around 49 %.

2013 PUBLIC EXPENDITURE: MEMBER STATES VS EU BUDGET 
AS % OF GNI

Belgium 
Bulgaria 
Czech Republic 
Denmark 
Germany 
Estonia 
Ireland 
Greece 
Spain 
France 
Croatia (*)
Italy 
Cyprus 
Latvia 
Lithuania 
Luxembourg 
Hungary 
Malta 
Netherlands 
Austria 
Poland 
Portugal 
Romania 
Slovenia 
Slovakia 
Finland 
Sweden 
United Kingdom 
EU Budget

0

10

20

30

40

50

60

70

Source: AMECO.
(*) Croatia joined the EU on 1 July 2013.

BUDGETThe EU budget funds investment projects that otherwise 
would not be realised. In some countries, it is practically 
the only source of investments in infrastructure. The EU 
budget can also be used to guarantee loans to Member 
States facing economic difficulties. 

The leverage effect is often powerful: €1 guaranteed 
by the EU budget can represent up to €12 raised by a 
small or medium-sized enterprise (SME).

Unlike national budgets, the EU budget does not fund 
defence expenditure or social protection. It does not pay 
for the running of schools or the work of the police as 
national budgets do.

4

The EU budget is different  
from national budgets

The EU budget is mostly an investment budget. The 
EU budget pools the resources of Member States and 
creates economies of scale. It finances actions that 
Member States can fund more effectively by working 
together, for instance in the fields of energy, transport, 
information and communication technologies, climate 
change and research.

The ‘Human brain’ project
European scientists are part of the ‘Human brain’ 
project, which is developing the most detailed 
model of the brain yet, using supercomputing 
technologies. The results will ultimately help the 
development of new treatments for brain diseases 
and revolutionary new computing technologies. (EU 
funding: €54 million.)

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The ‘Human brain’ project: developing the most  
detailed model of the brain yet, using supercomputing 
technologies.

THE EUROPEAN UNION EXPLAINED 
 
 
5

How is the EU budget managed?

The budget always needs to be in balance. Thus the 
EU budget never runs a deficit, never builds up debt 
and only spends what it receives. The annual budget 
must also comply with a long-term budgetary plan, the 
multiannual financial framework (MFF).

The multiannual financial framework 

The main political, therefore budgetary, priorities of the 
EU budget are planned over at least 5 years (usually 
seven). The MFF:

In case of disagreement between the European 
Parliament and the Council, a specific conciliation 
committee is convened with the task of reaching 
agreement on a joint text within 21 days. If the joint 
text is rejected by the Council, the European Parliament 
has the right to ultimately approve the budget. If the 
Parliament rejects the text, the Commission has to 
submit a new draft budget. If the budget is not adopted 
before the start of the new year, one twelfth of the 
previous year’s budget may be spent each month under 
certain conditions before the new budget is finally 
agreed.

•  sets maximum annual limits of EU expenditure 

(known as ceilings);

Who manages the money?

•  in several policy areas (called headings).

Within each area of the budget (heading), funding is 
mainly provided through programmes (such as the 
education programme, Erasmus+, or the environment 
programme, LIFE) or funds (such as the Cohesion Fund, 
a fund for poorer regions and Member States of the 
EU).

The MFF translates the political priorities set by the EU 
and its Member States into financial and legal terms. 
The MFF is not the budget of the EU. It is a planning 
tool and an assurance that EU spending is predictable. 
Each annual budget is adopted within the limits of 
this framework and usually remains below the MFF 
expenditure ceilings in order to retain some margin 
to cope with unforeseen needs. MFF ceilings can be 
compared to credit card limits for the period of 1 year.

Adoption of the budget

The budget is adopted every year. The European 
Commission prepares the draft budget and submits 
it to the Council and the European Parliament, who 
are the budgetary authority. Both the Council and 
the Parliament amend and adopt the draft budget. 
This is an important difference to many national 
budgets, where only one institution (one chamber if the 
parliament has two) approves the national budget.

The ultimate responsibility for the implementation 
of the budget lies with the European Commission. 
In practice, the lion’s share of the EU funds (some 
80 %) is spent together with Member States under 
what is known as shared management. Under these 
arrangements, the authorities in the Member States 
(for instance the respective ministries for regional 
development), rather than the Commission itself, 
manage the expenditure under the supervision of the 
Commission.

How is the money controlled?

The EU budget is guided by specific rules and 
regulations and controlled by several instances.

RULES GOVERNING EXPENDITURE
The main rules governing the actual spending of EU 
funds are contained in the EU’s financial regulation. A 
second set of rules, the rules of application, explains in 
detail how the financial regulation is to be applied. The 
rules are regularly reviewed and simplified to make life 
easier particularly for small beneficiaries.
http://ec.europa.eu/budget/biblio/documents/regulations/
regulations_en.cfm

BUDGETThe own resources are of three types.

•  Traditional own resources — these mainly consist of 
customs duties on imports from outside the EU and 
sugar levies. Member States keep a fixed percentage 
of the amounts as collection costs.

•  Own resource based on value added tax (VAT) — 
this is a uniform rate of 0.3 % which is, with some 
exceptions, applied to Member States’ harmonised 
VAT base.

•  Own resource based on GNI — each Member 

State transfers a certain percentage of its wealth 
(expressed in GNI, in 2013 it was 0.84321 %) to the 
EU budget. Although designed as a balancing item, 
this system has become the largest source of revenue 
of the EU budget. It accounted for 73.8 % of total 
revenue in 2013.

Other sources of revenue (around 5.8 % in 2013) 
include tax and other deductions from EU staff 
remunerations, bank interest, contributions from non-EU 
countries to certain programmes, interest on late 
payments and fines.

EU REVENUE 2013

Own resource based on VAT: 9.4 %

Traditional own
resources: 10.3 %

Own resource based on GNI: 
73.8 %

Surplus from
previous year:
0.7 %

Other: 5.8 %

6

TRANSPARENCY
If you want to know who receives EU money and 
how much, you can use the EU’s central online 
database (http://ec.europa.eu/contracts_grants/
beneficiaries_en.htm). For EU funds distributed by 
national authorities, this information is available on 
national websites.

INTERNAL AND EXTERNAL AUDITS
The EU budget is subject to internal and external 
audits. If the audit of the Commission finds that money 
from the EU budget was unduly paid, it must ensure 
the amount is recovered. Every year there is also an 
independent external audit of the EU’s annual accounts 
by the European Court of Auditors.

The Member States are equally responsible for 
protecting the EU’s financial interests. If errors are 
found, they may be corrected instantly before the 
payment is made. Corrections may also be applied 
to final payments, as EU projects usually run over 
several years. The Commission then gets back the 
money originally granted unless the Member States 
make alternative proposals in time. In 2013 alone, 
the Commission corrected or recovered €3.3 billion in 
this way. The European Anti-Fraud Office carries out 
investigations into potential cases of fraud. These cases 
affect only a small part of the budget, accounting for 
less than 0.2 % of it.

On the basis of the annual report of the Court of 
Auditors, the implementation of the EU budget is 
evaluated by the Council and the European Parliament. 
The Parliament then decides to grant discharge to the 
Commission or not. Discharge can be understood as 
an approval of how the Commission implemented the 
budget in that financial year and the closure of that 
budget.

WHERE DOES THE MONEY COME FROM?
At the beginning of each new MFF period, all EU 
Member States must decide by consensus on the types 
and maximum amounts of own resources that the 
EU may raise during a year as well as on the method 
for calculating them. It is the so-called own resources 
decision. One can say that through their sovereign 
decision Member States agree to ensure a certain level 
of revenue to the EU budget over the whole period and 
make them common own resources of the European 
Union.

THE EUROPEAN UNION EXPLAINED7

What the EU achieves with the budget

Directly or indirectly, we all benefit from some activity 
funded from the EU budget.

Growth and jobs

One key objective of the EU is to create more economic 
growth and jobs. To reach this goal, the EU finances 
research, innovation and technological development, 
works towards better employment conditions in 
Europe and encourages actions in favour of the 
competitiveness of SMEs. It invests in education and 
lifelong learning and improves transport, energy and 
digital networks to better connect people in Europe.

From biofuels to bioplastics
A European research team plans to demonstrate 
that 70 % of today’s polymers can be derived from 
biomass, thus reducing the dependence on 
petroleum-based plastic production. The ‘Biocore’ 
project will analyse the industrial feasibility of 
converting by-products such as straw or forestry 
residue into a wide range of products, including 
biofuels, chemical products, polymers and 
materials. (EU funding: €13.9 million.) 

Enterprise Europe Network
Bringing together close to 600 business support 
organisations from more than 50 countries, the 
Enterprise Europe Network has helped European 
SMEs seize business opportunities of the EU single 
market.

Economic, social and territorial cohesion

To create growth, the EU needs to strengthen economic, 
social and territorial cohesion and bring growth and 
development to the regions which are lagging behind. 
European funds finance new infrastructure, training 
programmes and cross-border cooperation. The 
cohesion policy of the EU reduces the disparities in the 
levels of development between regions and Member 
States in the EU. The entire EU benefits from this in the 
long run. For instance, numerous infrastructure projects 
in the poorer regions of Europe improve the quality of 
drinking water, build new waste landfills in accordance 
with EU standards and create efficient transport 
networks.

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Modern cohesion policy includes support for innovative 
technological solutions.

BUDGET 
 
 
8

State-of-the-art incubation, research 
and enterprise centre in Letterkenny
The Business Development Centre at the 
Letterkenny Institute of Technology is situated in a 
small town in the very north-west of Ireland. With 
the support of the EU, it has been extended to form 
a state-of-the-art incubation, research and 
enterprise centre named CoLab. It comprises 23 
business centres spread over 2 500 m2, provides 
campus-based incubation facilities to start-up 
companies, along with facilities for industrial 
research — all with the aim of supporting 
entrepreneurs at every stage of their business 
development. It has become a very attractive 
location for the business community of the north-
west region. (EU funding: €2.67 million.)

Micro-loans for a new chance
The European Progress Microfinance Facility 
provides micro-loans (less than €25 000) to small 
entrepreneurs, and to people who have lost or are 
at risk of losing their jobs and want to set up their 
own enterprise. The initiative is designed for groups 
with limited access to conventional credit, such as 
women, young people, minority groups and people 
with disabilities. 

Agriculture and rural development

The EU is a global leader in promoting policies that 
support the sound management of the natural 
environment.

The EU agriculture policy encourages the production 
of safe, high-quality food and promotes European 
agriculture products as well as innovation in farming 
and food processing. The European Agricultural 
Guarantee Fund finances direct payments to farmers 
and measures to respond to market disturbances, such 
as private or public storage and export refunds.

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EU agriculture policy 
encourages the production of 
safe, high-quality food.

THE EUROPEAN UNION EXPLAINED 
 
9

The EU boosts the economic potential of rural areas, 
creates new sources of income for the inhabitants by 
encouraging the diversification of their activities and 
protects our rural heritage thanks to the European 
Agricultural Fund for Rural Development .

At the same time, the EU promotes an efficient and 
sustainable use of land and forests. It encourages 
measures which enhance nature protection and 
biodiversity, reduce waste production and greenhouse 
gas emissions, develop clean technologies and improve 
air quality. Its LIFE programme supports environmental 
and nature conservation.

Save the Saimaa seals!
This Finnish project funded by the LIFE programme 
aims at improving the conservation status of the 
Saimaa Ringed seal in the Saimaa lake complex, 
which is one of the world’s most endangered species. 
It will reduce disturbance by humans (especially 
during the breeding period) and minimise fishing-
related risks (the seals are often accidentally killed). 
In order to help the seals adapt to climate changes, 
man-made snow drifts will be produced to improve 
their lairing conditions during mild winters. (EU 
funding: €4 million.)

Security and citizenship

In cooperation with its Member States, the EU fights 
against terrorism, crime and illegal immigration. It 
strives for a better management of migration flows and 
the development of a common asylum.

The EU contributes to protecting EU consumers.

RAPEX, for instance, is an alert system that facilitates 
the rapid exchange of information between Member 
States and the Commission. Thus, RAPEX helps to 
coordinate measures taken to prevent or restrict the 
marketing or use of certain products posing a serious 
risk to the health and safety of consumers.

RAPEX facilitates rapid 
exchanges of information on 
dangerous products. This 
image shows a laser pen, 
posing a risk to the eyes.

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BUDGET 
 
10

In addition, the EU budget promotes and protects the 
European cultural heritage, strengthening the feeling 
of common European identity. For instance, every year 
the European heritage days initiative allows more than 
20 million people to enjoy access to thousands of rarely 
opened sites.

The EU MEDIA programme provided the EU film 
and audiovisual industries with financial support in 
the development, distribution and promotion of their 
work. It helped European films and audiovisual works 
to find markets beyond national and EU borders. Big 
international successes such as Les Intouchables by 
Olivier Nakache and Éric Toledano, Slumdog millionaire 
by Danny Boyle, Das Leben der Anderen by Florian 
Henckel von Donnersmarck and Amour by Michael 
Haneke received funding from the EU.

Global Europe

The impact of the EU funds does not stop at its borders. 
The EU helps ensure stability, security and prosperity 
in Europe’s neighbourhood and across the globe, carry 
out crisis management and peacekeeping missions, and 
fight poverty in the poorest countries of the globe. It 
provides assistance, relief and protection for the victims 
of natural or man-made disasters. The EU confirmed 
its status as the biggest aid donor in the world with 
assistance provided to 124 million people in over 90 
countries outside the EU in 2013.

Promotion of human rights
Thanks to a joint EU and Unicef project, the number 
of villages in Senegal declaring that they have 
abandoned the practice of female genital mutilation 
or cutting increased from 300 to 5 315 between 
2008 and 2011.

Too much money spent on 
administration?

Administrative costs represent only 6 % of the EU 
budget and cover the staff and building costs of 
EU institutions, including the European Parliament, 
Council of Ministers, European Commission, Court of 
Justice and Court of Auditors. In order to adapt to the 
need to consolidate public spending in Europe, the EU 
institutions are cutting costs: the Commission’s wide-
ranging staff reform is expected to save €8 billion by 
2020, reducing its staff by 5 %, while at the same time 
increasing its working hours.

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The EU helps the audiovisual 
industries develop, distribute 
and promote their work.

THE EUROPEAN UNION EXPLAINED 
 
 
11

The EU budget for you

The resources of the EU budget are accessible to any 
EU citizen, to you, to your company, your school, your 
village, your region or to the NGO you sympathise with.

The EU budget provides two main types of funding.

1. Grants awarded to finance or co-finance certain 
projects or objectives, usually through a call for 
proposals. Those interested in EU funding are to 
demonstrate how the available funds will achieve the 
set objectives. Funding from structural and investment 
funds is provided through grants awarded by regional 
and local administrations.

2. Public contracts awarded through a call for tenders 
(public procurement) to buy services, goods or works 
in order to ensure the operations of EU institutions or 
programmes.

If you are a researcher, grants are available in the 
form of co-financing for research. Two-year work 
programmes announce the specific areas that will 
be funded by Horizon 2020. Look out for them on 
the online Participant Portal as they can be used as 
a calendar for the calls for proposals (‘calls’) to be 
published during the year.
http://ec.europa.eu/research/participants/portal/desktop/
en/home.html

If you are an EU farmer, you are most likely to receive 
direct payments to support your income. You might 
also benefit from other funds such as the European 
Agricultural Fund for Rural Development or the LIFE 
programme, supporting the environment and fighting 
climate change.
http://ec .europa .eu/clima/policies/finance/budget/life/
index_en .htm

Can I benefit from EU funding?

There are many projects, programmes and funds, each 
of them having its rules.

If you are a young person, you may benefit from the 
EU education programme Erasmus+, which provides 
opportunities to study abroad. This programme may 
also be relevant if you are nearing the end of your 
secondary education or planning to follow vocational 
training in another country. You can also find co-funding 
for projects which encourage civic involvement, 
volunteer work and a broader multicultural outlook.
http://ec.europa.eu/programmes/erasmus-plus/
index_en.htm

If you own an SME, you may benefit from EU funding 
through grants, loans and in some cases guarantees, 
as well as facilities for growth under the new COSME 
programme.
http://ec .europa .eu/enterprise/initiatives/cosme/
access-to-finance-smes/index_en .htm

If you consider yourself to be an ordinary European 
citizen, or if you belong to a public body or an NGO, 
you might also benefit from EU funding, provided that 
you or your organisation are active in EU policy areas. 
Find more information on our dedicated programmes 
website.
http://ec .europa .eu/budget/mff/programmes/
index_en .cfm#cfpi

The European Commission is preparing a new 
Beginner’s Guide to EU Funding which is planned to 
be issued in 2014. If you are interested in receiving 
information about this publication, please follow the EU 
budget on the web or on Twitter, Facebook or Google+.

BUDGET©
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The way ahead for the EU budget

In the MFF 2014–20, the EU dedicates more than 
€1 trillion to help Europe overcome the economic 
and financial crisis, fight unemployment and support 
economic growth. The MFF implements the five 
ambitious objectives set out in the Europe 2020 growth 
strategy — on employment, innovation, education, 
social inclusion and climate/energy — to be reached by 
2020. Let’s focus on the key elements of the new MFF.

Thanks to the new COSME programme, they 
can expect €2.3 billion in support to foster their 
competitiveness and boost growth and jobs in 
Europe. They will gain easier access to markets 
inside and outside the EU and to finance through 
loan guarantees and risk capital.

The EU budget helps people find a job

The EU budget contributes to job creation through 
the European Social Fund (ESF) and the European 
Regional Development Fund (ERDF). A new youth 
employment initiative (worth €6 billion in the new 
MFF) supports unemployed young people in the regions 
with high youth unemployment rates (above 25 % 
in 2012). It should help to ensure that young people 
under 25 receive good job offers or — if they cannot 
find a job — that they continue their education within 
4 months of leaving school or becoming unemployed.

Support and encourage an 
entrepreneurial culture

SMEs are the backbone of Europe’s economy, 
accounting for around 99 % of all European businesses 
and providing two out of three private sector jobs. 

MFF 2014–20 — COMMITMENT APPROPRIATIONS 
( = LEGAL PLEDGES TO PROVIDE FUNDING UNDER CERTAIN CONDITIONS) — IN MILLION € (CURRENT PRICES)

The EU budget helps young people find a job.

1a. Competitiveness for growth and jobs; 142 130, 13.1 %

1b. Economic, social and territorial cohesion; 366 791, 33.9 %

6. Compensation; 29, 0.0 %

5. Administration; 69 584, 6.4 %

4. Global Europe; 66 262, 6.1 %

3. Security and citizenship; 17 725, 1.6 %

2. Sustainable Growth: Natural Resources; 420 034, 38.9 %

Source: European Commission.

THE EUROPEAN UNION EXPLAINED 
13

Simpler EU funding rules in 2014–20

A better connected Europe

The funding rules have been simplified and are 
therefore easier to understand for beneficiaries 
and less prone to errors. Altogether, around 120 
simplification measures have been introduced to free 
beneficiaries from burdensome regulation. For example, 
in COSME, a ‘zero bureaucracy’ approach is applied and 
e-submission and e-reporting are promoted. Less red 
tape allows businesses to focus their resources on their 
core activity and be more innovative and competitive.

Growth and jobs in Europe crucially depend on 
infrastructure investment. The Connecting Europe 
Facility, worth €33 billion, will improve Europe’s 
transport, energy and digital networks. It will make 
Europe’s economy greener by promoting cleaner 
transport modes, fast broadband connections and 
facilitating the use of renewable energy. It also aims at 
further integrating the internal energy market to reduce 
the EU’s energy dependency and bolster its security of 
supply.

Turku Naantali Helsinki

Hamina Kotka

Oslo

Örebro

Gothenburg

Copenhagen

Malmö

Trelleborg

Tallinn

Riga

Stockholm

Ventspils

Klaipėda

Gdynia/Gdańsk

Kaunas

Vilnius

Bremen

Rostock

Hamburg

Szczecin/Swinoujscie

Glasgow

Edinburgh

Liverpool

Manchester

Birmingham

Belfast

Dublin

Cork

London

Southampton

Amsterdam

Felixstowe

Utrecht

Rotterdam
Zeebrugge Antwerp

Osnabrück

Berlin

Magdeburg

Poznań

Hanover

Frankfurt/Oder

Warsaw

Dover

Calais

Gent

Lille

Le Havre

Brussels

Liege

Düsseldorf
Cologne
Frankfurt Würzburg

Dresden

Luxembourg
Metz

Paris

Mannheim

Nuremberg

Stuttgart

Regensburg

Passau

Vienna

Wrocław
Prague

Ostrava

Brno

Katowice

Žilina

Bratislava

Dijon

Lyon

Bilbao

Bordeaux

Strasbourg

Basel

Munich
Innsbruck

Wels/Linz

Klagenfurt

Graz

Budapest

Arad

Braşov

Udine

Novara

Verona

Trieste

Turin Milan

Venice

Koper

Ljubljana

Rijeka

Bologna

Genoa
La Spezia
Livorno

Ravenna

Ancona

Timişoara

Bucharest

Zagreb

Craiova

Soﬁa

Sulina

Constanţa

Burgas

Valladolid

Vitoria

Zaragoza

Perpignan

Marseille

Madrid

Tarragona

Barcelona

Valencia

Porto
Aveiro

Lisbon

Sines

Seville

Antequera/Bobadilla

Murcia

Cartagena

Algeciras

Rome

Naples

Bari

Taranto

Gioia Tauro

Palermo

Thessaloniki

Igoumenitsa

Patras

Athens/Piraeus

Nicosia

Limassol

Source: European Commission services.

Valletta

The EU invests in creating new efficient transport networks.

BALTIC–ADRIATIC

NORTH SEA–BALTIC

MEDITERRANEAN

ORIENT/EAST–MED

ATLANTIC

SCANDINAVIAN–MEDITERRANEAN

NORTH SEA–MEDITERRANEAN

RHINE–ALPINE

RHINE–DANUBE

BUDGET14

Scientists bridging the gap between 
research and market

More EU funding to support cultures

The new research and innovation programme, Horizon 
2020, with a significantly increased budget of  
€79.4 billion, aims at strengthening the EU’s position in 
science and industrial leadership in innovation. It also 
addresses major concerns shared by all Europeans such 
as climate change, developing sustainable transport and 
mobility, making renewable energy more affordable, 
ensuring food safety and security or coping with the 
challenge of an ageing population. In addition, it seeks 
to bridge the gap between research and the market 
by encouraging innovative enterprises to develop their 
technological breakthroughs into viable products with 
real commercial potential.

More than 4 million young people to 
study abroad

Aimed at boosting skills and employability, the new 
programme for education, training, youth and sport, 
Erasmus+, has a budget of almost €15 billion (40 % 
higher than before). More than 4 million people will 
receive support to study, train, work or volunteer 
abroad, including 2 million higher education students, 
650 000 vocational training students and apprentices, 
as well as more than 500 000 going on youth 
exchanges or volunteering abroad. Up to 200 000 
students planning a full Master’s degree abroad will 
benefit from a new loan guarantee scheme run by the 
European Investment Fund. Six hundred partnerships in 
sport will also receive funding.

European culture, cinema, television, music, literature, 
performing arts, heritage and related areas will benefit 
from increased support under the EU’s new Creative 
Europe programme. With a budget of almost  
€1.5 billion over the next 7 years (9 % more than 
before), the programme will provide a boost for the 
cultural and creative sectors, which are also a source of 
jobs and growth.

A reformed common agricultural policy

The reformed common agricultural policy (CAP) is a 
strong response to the challenges of today, such as 
food safety, climate change, sustainable growth and job 
creation in rural areas. The new CAP is more targeted, 
efficient and more transparent. Direct payments will 
be fairer and greener. Farmers will enjoy a stronger 
position within the food production chain. 

Making Europe a clean and competitive 
economy

The MFF 2014–20 marks a major step forward in 
transforming Europe into a clean and competitive low-
carbon economy. At least 20 % of the entire budget will 
be spent on climate-related projects and policies. The 
LIFE programme, worth €3.5 billion, funds biodiversity 
and environment protection, with a special focus on 
climate actions. 

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Erasmus+ helps millions of people to study, train, gain work 
experience and volunteer abroad.

THE EUROPEAN UNION EXPLAINED 
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The EU supports initiatives 
contributing to a clean and 
competitive European 
low-carbon economy.

Enhancing security

More impact for the same money

Citizens need to feel safe and at ease wherever they 
are in the EU. The amounts foreseen for citizens, 
asylum, migration, health, consumers and security will 
increase by 26.5 % compared to the previous period. 
The Asylum, Migration and Integration Fund, worth 
€3.1 billion, promotes the efficient management of 
migration flows and the implementation of a common 
approach to asylum and immigration. The Internal 
Security Fund, worth €3.8 billion, aims at combating 
crime including terrorism. It also facilitates travel to 
the EU while ensuring a high level of control at the EU’s 
external borders. 

Helping the poorest in the world

As a responsible global player, the EU will continue 
its engagement with the rest of the world, promoting 
democracy, peace, solidarity, stability, poverty reduction 
and prosperity. EU funding focuses even more on 
helping the poorest in the world by concentrating 
support on fewer countries (like sub-Saharan Africa) 
and fewer sectors (like sustainable and inclusive growth 
and good governance). For instance, the Development 
Cooperation Instrument, worth €20 billion, supports 
many developing countries in their fight against poverty.

While there will not be more money available compared 
to the previous period, it will have to be spent more 
effectively and in a more targeted manner in order 
to achieve the ambitious goals of Europe 2020. 
The current MFF will be reviewed in 2016 to orient 
the EU budget further towards jobs, growth and 
competitiveness.

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The EU supports developing countries in their fight  
against poverty.

BUDGET 
 
 
 
 
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Find out more

 X EU budget: http://ec.europa.eu/dgs/budget/index_en.htm
 X Multiannual financial framework 2014–20: http://ec.europa.eu/budget/reform 
 X Europe 2020: http://ec.europa.eu/europe2020/index_en.htm
 X Annual activity reports for the different EU policy areas:  
http://ec.europa.eu/atwork/synthesis/aar/index_en.htm

 X Myths and facts about the EU budget: http://ec.europa.eu/budget/explained/myths/myths_en.cfm
 X EU budget in my country: http://ec.europa.eu/budget/mycountry 
 X Comic book ‘On the road to victory’: http://bookshop.europa.eu/en/on-the-road-to-victory-pbKV0113560/
 X 2014 EU budget at a glance: http://bookshop.europa.eu/en/2014-eu-budget-at-a-glance-pbKV0113742/

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: https://twitter.com/EU_Budget 

: http://goo.gl/wXZrq

 X
 X European Court of Auditors: http://www.eca.europa.eu 
 X European Anti-Fraud Office (OLAF): http://ec.europa.eu/anti_fraud 
 X Questions about the European Union? Europe Direct can help: 00 800 6 7 8 9 10 11 —  

http://europedirect.europa.eu

ISBN 978-92-79-41730-6 
doi:10.2775/27936

THE EUROPEAN UNION EXPLAINED