The EU's sources of income include contributions from member countries, import duties on products from outside the EU and fines imposed when businesses fail to comply with EU rules. The EU countries agree on the size of the budget and how it is to be financed several years in advance.
The EU budget supports growth and job creation. Under the cohesion policy, it funds investment to help bridge economic gaps between EU countries and regions. It also helps develop rural areas in Europe.
The 3 main sources of revenue are:
The EU also receives income tax from EU staff, contributions by non-EU countries to certain EU programmes and fines on companies that breach EU rules and regulations.
How is the EU budget drawn up? Are we shelling out a fortune to fund it? How does it benefit Member States?