Multiannual Financial Framework 2014 - 2020

The next MFF, which is now under discussion, will define the EU's long-term spending priorities

Who decides how the money is spent?

Deciding how much the EU will spend – and what on – is a democratic process. Every year:

• the European Commission proposes a budget for the following year, covering each policy and programme
• elected representatives in the European Parliament and EU Council decide on the spending plans

Follow-up

• Once the money has been used, the Commission must report back to the Parliament on how it was spent.
• The expenditure is also subject to scrutiny by the European Court of Auditors.

What's the money spent on?

In Europe

Some of the main uses are:

• training people in new skills and stimulating businesses to innovate and create jobs
• helping preserve the environment and improve quality of life through rural and regional development
• building hard infrastructure: roads, railways, bridges, power and gas transmission lines that connect the farthest corners of the EU
• supporting cultural diversity and educational exchanges
• providing emergency assistance when there are floods or earthquakes.

Abroad

As a major global player, the EU has certain obligations to the outside world: promoting economic and social development, keeping the peace and helping victims of disasters and conflict.

It is particularly active in 3 groups of countries:

• parts of the developing world with which certain EU countries have strong historic ties, especially Africa and the Caribbean and Pacific regions
• emerging economies along the EU's eastern borders and around the Mediterranean
• potential EU member countries.

Top 3 spending areas (2011 figures)

1. 45% goes on making the EU more competitive and boosting development in its poorer countries/regions ("cohesion").
2. 31% is spent on subsidies to EU farmers. No longer linked to excessive production, this aid instead secures supplies of safe food at reasonable prices and ensures farmers enjoy a fair income, also in return for preserving the environment.
3. 11% is allocated to rural development.

R&D - where pooling resources makes sense

Generally, the EU is responsible for spending money only where it makes sense for member countries to pool resources. Scientific research programmes, vital for keeping Europe globally competitive, are a good example of this.

EU research funding promotes integrated research projects involving scientists working in different EU countries. This approach shares the fruits of national research EU-wide, as well as creating economies of scale and effort.

The fields that benefit are manifold, including biotechnology, information technologies, nanotechnology and space research.

What it costs to run the EU

The costs of running the EU (administration) amount to 6% of total spending. This includes running costs for all the institutions (mainly the European Commission, Parliament and EU Council) and the translators and interpreters who make information available in all of the EU’s official languages.

Top

EU institutions and bodies

• European Commission:
  • Budget department
  • Budget reform
  • European Anti-Fraud Office (OLAF)
  • Internal Audit Service
• European Parliament:
  • Committee on Budgets 
  • Committee on Budgetary Control
• Council of the European Union
  • Economic and financial affairs
• European Economic and Social Committee
  • Economic and monetary union, economic and social cohesion section
• Committee of the Regions
  • Commission for economic and social policy (ECOS)
• European Ombudsman
  • European Ombudsman
• Court of Auditors
  • Court of Auditors and the EU budget

Funding opportunities

• Call for tenders (public procurement)

Publications, newsletters and statistics

• Publications
• Newsletters
• Statistics
• General budget by year

Legislation

• Summaries of EU legislation on the EU budget
• Legislation in force on the EU budget
• Treaty on the Functioning of the European Union - Articles 310 - 324