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Budget

5. Budget reform

As budget is the fundamental tool for the EU to deliver its policy goals and to meet future challenges, internal as well as global, the EU decided in May 2006 to review its spending policies. The Commission was asked 'to undertake a full, wide ranging review covering all aspects of EU spending, including the CAP, and of resources, including the UK rebate, to report in 2008/9'.
In September 2007, the European Commission launched a public consultation on the future of EU’s funding under the theme Reforming the Budget – Changing Europe. The Commission asked all stakeholders to come up with ideas on: What should be the structure and direction of the European Union’s spending priorities to meet the challenges of the globalised world in the next decade and beyond? What is the best way of providing the resources necessary to fund EU policies?

In November 2008, results of the public consultation were declared. They revealed that the majority of EU member states, NGOs, universities and scientists, social partners, private citizens and companies saw the following as Europe’s biggest challenges, which should be reflected in future budgeting:

• climate change, competitiveness, security of energy supply;
• inequalities between EU’s countries and regions, demographic trends (ageing populations) and external pressures (security threats, migration) were also seen as serious threats.

Effectiveness and efficiency, transparency, flexibility, performance and results were the key words coming out of the consultation.

As the current EU budget runs for the 2007-2013 period, it remains to be seen what the member states' verdict will be on the results of this consultation and what direction will the EU’s budget reform take for the future.

The Commission’s Reforming the Budget – Changing Europe website