European Parliament: Budgetary procedure

First phase: Draft budget
All EU institutions draw up their estimates for the draft budget before 1 July each year. The Commission consolidates these estimates and prepares the annual draft budget, which is submitted to Parliament and Council no later than 1 September.
Second phase: Council position
The Council adopts its position on the draft budget and forwards it to Parliament before 1 October, along with the reasons for its position. At the same time, parliamentary committees discuss the draft budget and deliver their opinions to the Budgets Committee, which is responsible for preparing Parliament's position.
Third phase: Parliament's position
Parliament has 42 days either to approve the Council's position, or, by an absolute majority of its members, to amend it. MEPs vote on the position prepared by the Budgets Committee and any tabled amendments, usually during a plenary session in October.
If Parliament approves Council's position, or declines to state a position, the budget is deemed adopted. However, Parliament normally adopts amendments and the amended text is forwarded to the Council. In this case, the President of the Parliament immediately convenes a meeting of the Conciliation Committee. The committee does not meet if the Council informs Parliament within 10 days that it has approved all of its amendments.
Fourth phase: Conciliation
The Conciliation Committee, composed of representatives of the Council and an equal number of members representing Parliament, has 21 days to reach an agreement on a joint text.
Fifth phase: Adoption
If the Conciliation Committee agrees on a joint text, Parliament and Council have 14 days to approve it. The President of Parliament then signs the budget and declares that it has been definitively adopted.
If the conciliation procedure fails, or if the joint text is rejected by Parliament, the Commission submits a new draft budget. If the joint text is rejected by the Council, Parliament may still decide to adopt it.
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 European Parliament  European Commission  Council of the European Union