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IP/09/1958

Strasbourg, December 17 th 2009

EU Budget 2010: investing to restore jobs and growth

The 2010 EU budget will see jobs and the economy top spending. Over €64bn (or 45%) of the €141bn of EU funds will go on measures linked to research, education and innovation. Research funding will grow by nearly 12% (€7.5bn) and energy and transport by more than 10% (€2bn). Financing for strategic energy projects, broadband in rural areas and cash to help rural communities cope with new challenges in agriculture will also provide a welcome boost to Europe's economy with the final €2.4bn of the €5bn European economic recovery plan being secured for 2010. Agricultural spending will continue to be stable next year at nearly €44bn with over €14bn (+2.6%) to promote rural development and additional emergency aid of €300m to help milk producers. The biggest increase in EU spending in 2010 will be for projects to fight crime, terrorism and manage migration flows, with this area growing by 16.2% on 2009 to almost €1bn.

Speaking in the European Parliament after the vote on the 2010 EU budget, Algirdas Šemeta , EU Commissioner for Financial Programming and Budget said "The 2010 budget is a recovery budget. It's about getting ready for better times, maintaining jobs, stimulating growth". Speaking to the media Commissioner Šemeta added: "Despite the difficult economic situation, the 2010 budget guarantees the financial resources to keep EU programmes on track and focused on areas linked to recovery. The fastest growing areas are the ones most geared to an upturn like innovation, research or the financing of energy links, where spending is increasing faster than the budget itself ."

Staying in line with the Commission's preliminary draft budget proposal from last April at 1.2% of EU-27 Gross National Income (GNI), the 2010 adopted budget amounts to a total of €141.5bn in commitment appropriations [1], up 3.6% compared to 2009. Payment appropriations [2] will amount to €122.9bn, or an increase of 8.8% in nominal terms. This represents 1.04% of EU-27 GNI.

Focusing on recovery: maintaining jobs and stimulating growth

In 2010, almost15bn, 7.9% more than in 2009, will go on competitiveness measures. This includes €7.5bn for the 7th Research Framework Programme (+ 11.7%) and €500m (+3.4%) for the Competitiveness and Innovation programme (CIP) that will finance cutting edge technologies. Trans-European transport and energy networks will see 12.7% more funding compared to 2009 (€1.1bn).

Boosting the integration of the EU-12 into cohesion policy

Cohesion funding will grow in 2010 with €49.4bn going directly to in the EU-27, a 2% rise compared to 2009. The trend to phase-in funding for the Member States that joined the EU in 2004 and 2007 (EU-12) will continue and, for the first time ever, these countries will receive the biggest share of the EU’s Cohesion and Structural Funds (52%). The European Social Fund will account for €10.8bn in 2010 to support people and businesses helping 9 million companies and citizens through training and education programmes.

Supporting rural communities and a healthy environment

Funding for agriculture stands steady at € 43.8bn, helping to ensure a fair standard of living for over seven million European farmers in return for maintaining land in good environmental condition. Increased funding for rural development (€14.4 billion) will help farmers to manage water more efficiently, ensure animal welfare and encourage organic farming.

Responding to needs beyond EU borders

In 2010 will see the EU continue its efforts to help poorer countries and maintain its place on the world stage to meet global challenges like climate change, food security and globalisation (€ 8.1bn). The EU's aid to developing countries channelled through the Development Cooperation Instrument will increase by 3.9 %, reaching €2.5bn. The Common Foreign Security Policy (+15.9%) and the Stability instrument (+16.7%) will also significantly increase.

Making the EU and its borders a safer place for all

Managing migration flows remains a challenge common to all EU Member States. This is why support in justice and security programmes will see the biggest increase in 2010, up 16.2% from 2009. The External Borders Fund will contribute €208m to improve surveillance infrastructures, while the European Fund for the Integration of Third Country Nationals will invests €111m in the development of national integration strategies.
For the first time in 2010, the EU budget will finance the European Police Office (Europol) with €80m, supporting the Member States in their fight against all forms of organised crime and terrorism.

[1] Commitment appropriations cover legal commitments made to spend funds over one or more years. These commitments are then honoured by payment appropriations each year. Unless otherwise indicated, all amounts mentioned are in commitment appropriations.

[2] Payment appropriations cover payments made to honour the legal commitments entered into in the current financial year and/or earlier financial years.


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