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Budget

3. How is the money used?

Generally, the EU only funds activities, programmes and policies where it makes sense for the member governments to pool their resources. Other basic principles in the EU’s use of funds are cohesion and solidarity.

Looking at the EU budget 2008 in figures EU budget 2008 in figures shows that the Union’s priorities are changing. In the past, agriculture took a lion’s share of the common funds. In 2008, for the first time, the biggest slice went to economic growth and greater cohesion in the EU27.

Of the total 2008 budget of €129.1 billion 45% went into making the EU economy more competitive and dynamic, and to increasing the cohesion of the EU, i.e. narrowing the gap between richer and poorer member states. Agriculture was still another major area of expenditure, as it is the EU’s only fully integrated policy. It took over 40% of the budget in 2008. Of this 32% was spent on providing secure supplies of food, and ensuring the EU’s 19 million farmers an income, and a further 11% went on rural development and the protection of the rural environment.

In the heading of growth and competitiveness, major financing was attributed to research, innovation and technological progress as well as energy and transport networks, lifelong learning and student mobility. Regional growth and employment received extra support especially in the newest 12 member states as well as in the less prosperous regions of the EU as a whole. The EU as a global player - working for peace, stability and prosperity beyond the Union’s borders - also now gets significantly more funding than before.

The administrative costs to all EU institutions amounted to €7.3 billion, corresponding to 5.8% of the total commitments in the 2008 budget.

EU budget 2009 comes to a total of €134 billion and spends most on growth and employment as well as cohesion, which take the biggest share – nearly 45% - of the budget. Money for agriculture and rural environment remains stable at roughly 43% of the budget (almost €58 billion).

In 2009, energy and climate change programs get funding worth €17 billion. Investment in environment is on the rise and the total funds for environmental targets will take more than 10% of the budget - €14 billion. Efforts to raise green investment cut across different areas. Support for the EU's main environmental protection programme, Life+, rises by 8%, reaching €288 million. Total funding for energy objectives including energy security, renewable energy and research is set at around €2.3 billion.

EU efforts to help maintain stability and security worldwide will be worth almost €7.5 billion in 2009. Fighting terrorism and managing migration are also funded from this heading.

To find out detailed information on who gets EU cash, check out the Financial Transparency System website and search engine. More brochure-type information for the general public is given on the How is your money spent? pages on the Europa site.