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On 1 June 2021, the decision that reforms the financing system of the EU budget entered into force, following its ratification by all Member States. It introduces three significant innovations in the own resources system, applying retroactively from 1 January 2021. The maximum level of resources that can be called from Member States permanently rises from 1.20 % to 1.40 % of EU gross national income (GNI). A temporary increase in the own resources ceiling, worth a further 0.60 % of EU GNI, is devoted ...

Focusing the EU fiscal framework on an expenditure rule could help to increase transparency, compliance and ownership. In various other respects, like estimation errors or counter-cyclicality of prescribed fiscal policy, an expenditure rule is similar to a structural balance rule. If the EU decides to go beyond the current focus on fiscal aggregates, a two-rule system aimed at safeguarding specific expenditures could be placed at the centre of the EU fiscal framework. The key challenge is to define ...

Parliament's reading of the 2020 EU budget

Εν συντομία 17-10-2019

During the October II plenary session, the European Parliament is due to decide on amendments to the Council's position on the draft EU budget for 2020. The report of the Committee on Budgets reverses the cuts proposed by the Council, with the exception of funds for Turkey. Furthermore, it proposes a considerable increase in the contributions of the 2020 budget to the fight against climate change, and increases appropriations for a number of Parliament's other priorities, to make 2020 a bridge to ...

Pilot projects and preparatory actions (PP/PAs) are tools introduced in the European Union (EU) budget that aim at testing new policy initiatives and/or preparing the ground for the adoption of future measures. Such PP/PAs give Members of the European Parliament the possibility to initiate innovative policies and fund them in advance of a legal basis being set. Both new PP/PAs and those continued from previous years must be included in the EU budget through the annual budgetary procedure.

The European Parliament (EP) and the Council are the budgetary authority of the European Union. The two institutions, assisted by the European Commission, decide on the budget in the annual EU budgetary procedure. The annual EU budget funds EU policies and programmes following the Union's political priorities and legal obligations. The financial year starts on 1 January and ends on 31 December. The European Parliament amends the Council position through the work of its Committee on Budgets (BUDG) ...

Agreement on EU general budget for 2019

Εν συντομία 11-12-2018

After the failure of budgetary conciliation, the European Commission put forward a new draft budget for 2019. Based on the second draft budget and subsequent negotiations, the European Parliament and Council have agreed the General Budget for the European Union for 2019, at a level of €165 795.6 million in commitments and €148 198.9 million in payment appropriations. This means an increase of 3.2 % in commitments and 2.4 % in payments as compared to 2018 budget. The Parliament has scheduled the adoption ...

The process of negotiating a new seven-year financial plan for the EU has now begun formally with the Commission's publication of proposals for a 2021-2027 Multiannual Financial Framework (MFF), and for a new system of own resources providing the revenue to pay for it. This analysis presents the proposed new MFF and own resources and compares them to the status quo, as well as to the European Parliament's priorities as expressed in plenary resolutions adopted in spring 2018.

On 2 May, the Commission is expected to publish proposals for a new multiannual financial framework (MFF) for the European Union for the years after 2020, as well as for a new system of own resources (OR) to provide the EU with the means to finance its annual budgets. The following day the proposals are to be presented to the Parliament's Committee on Budgets (BUDG).The proposals are being published as a package, and will be followed by a series of further legislative proposals for individual spending ...

Performance budgeting: A means to improve EU spending

Λεπτομερής ανάλυση 16-03-2018

In 2015, the European Commission launched an initiative entitled 'The EU budget focused on results'. It is aimed at changing spending culture and making results a horizontal priority for the EU budget. The initiative is based on a popular contemporary budgeting method known as 'performance budgeting'. This paper presents the method and its application to the EU budget. It explains why, although not easy to implement, performance budgeting is seen as an attractive way to increase value for money and ...

Reform of the EU's system of own resources

Εν συντομία 06-03-2018

In May 2018, the European Commission is expected to present a legislative package on what are known as 'own resources' – the sources of revenue for the EU budget – for the period after 2020, alongside proposals on a new Multiannual Financial Framework (MFF). The European Parliament has long pointed to shortcomings in the current system of own resources, and in anticipation of the Commission's proposals, the Committee on Budgets has drafted an own-initiative report on the Parliament's priorities. ...