Budget 2011

04/19/23 ©European Commission 1

Budget 2011

Spending PrioritiesLaying the cornerstone for smart, sustainable and

inclusive growth

Jan GerritsenDG Budget A1 IBFP Conference

18 February 2011

Budget 2011

04/19/23 ©European Commission 2

APPROPRIATIONS BY HEADING Billion €

% change from 2010*

Margins(Million €)

CA PA CA PA CA

1. Sustainable growth:Competitiveness Cohesion

64.513.551.0

53.311.641.7

+0.4- 9.0+3.2

+11.8+3.1

+14.5

-27.2 - 33.6+ 6.4

2. Preservation and management of natural resources:Direct payments & market related expenditureRural development, environment, fisheries

58.742.915.8

56.442.813.6

- 1.4- 2.1+0.6

- 3.0- 2.1- 5.6

1 678.8

3. Citizenship, freedom, security and justice: Freedom, Security and JusticeCitizenship

1.81.10.7

1.50.80.7

+3.8+13.2

- 8.7

- 1.3+10.1- 12.6

67.167.00.1

4. The EU as a global player 8.8 7.6 +7.5 - 7.1 - 70.4

5. Administrative expenditure (for all EU institutions): of which Commission

8.23.3

8.23.3

+3.3- 8.2

+3.3- 8.2

243.2

Total appropriations 141.9 126.5 +0.3 +2.9 1 996.5

In % of EU-27 GNI 1.13 1.01

Where will EU money go in 2011

* incl. Economic Recovery Plan

Budget 2011

04/19/23 ©European Commission

Commitment Appropriations

€141.9 billion 1.13% of EU GNI

+€0.4 billion, 0.3% compared to 2010*

EU spending for 2011

Payment Appropriations

€126.5 billion1.01% of EU GNI

+€3.6 billion, 2.9% compared to 2010

* Including Economic Recovery Plan

Budget 2011

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Share of spending areas

by headings, in %

Total: € 141.9 billion in commitment appropriations

The EU as a global partner

6.2%

Rural development, environment,

fisheries11.1%

Direct aids and market related

expenditure30.2%

Total administrative

expenditure5.8%

Cohesion & Competitiveness for growth and

employment 45.4%

Citizenship, freedom, security

and justice1.3%

Natural resources overall 41.3%

Budget 2011

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Share of spending areas

by headings, in %

Total: € 126.5 billionin payment appropriations

The EU as a globalpartner5.7%

,Rural developmentenvironment ,fisheries

10.8%

Direct aids and marketrelated expenditure

33.8%

Total administrative

expenditure6.5%

&Cohesion Competitiveness for growth and

employment42.1%

,Citizenship freedom ,security

and justice1.2%

Natural resources overall: 44.6%

Budget 2011

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Multiannual Financial Framework – Heading 1ACompetitiveness for Growth and Employment

Commitments:€13.5 billion- 9.0% on 2010*

Margin € - 33.6 million*

TEN +16.8% FP7 +14.1% CIP + 8.2% Lifelong Learning +4.4%

Boosting the private sector

Payment appropriations:€11.6 billion+ 3.1% on 2010**

Evolution of the 7th Framework Programme (FP7)

* The margin does not take in to account the European Globalisation Fund ( 500 million).EUR 34 million above the ceiling is financed by the mobilisation of the Flexibility Instrument.

** Including European Economic Recovery Plan

€5.5 bn€6.8 bn

€8.6 bn

2007 2009 2011

Budget 2011

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Multiannual Financial Framework – Heading 1BCohesion for Growth and Employment

Cohesion Fund: +8.7% Territorial cooperation: +5.6% Structural funds: +1.8%

Commitments:€51.0 billion+3.2% on 2010

Margin €6.4 million

Evolution of Cohesion Policy in payment appropriations

Reinforcing Social, Economic and Territorial Cohesion

Payment appropriations:€41.7 billion+14.5% on 2010

€36.4 bn

2009 2010 2011

€34.9 bn€41.7 bn

Budget 2011

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Multiannual Financial Framework – Heading 2Management of Natural Resources

2009 2010 2011

91% of Direct Aid Decoupled Compared to 85% in 2010

Direct aid & Market related expenditure: - 2.1%

Rural development: +0.5% Life +: + 10.9%

Commitments:€58.7 billion- 1.4% on 2010*

Margin €1 679 million

Evolution of LIFE + programme

Payment appropriations:€56.4 billion- 3.0% on 2010

€317 million

€306 million

€340 million

Budget 2011

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Multiannual Financial Framework – Heading 3Citizenship, Freedom, Security and Justice

€1.6bn€1.5 bn

Securing and safeguarding liberties +25.4% Managing migration flows +18.4% Culture +6.3% Audiovisual and Media +7.8%

Implementing the “Stockholm Programme”

Commitments:€1.8 billion+3.8% on 2010

Margin €67.1 million

€1.8bn

Payment appropriations:€1.5 billion- 1.3% on 2010

Evolution Heading 3

2009 2010 2011

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Multiannual Financial Framework – Heading 4EU as a Global Player

Budget2010

FF € 152 million

Neighbourhood policy (ENPI): + 9.3% Pre-accession (IPA): + 13.2% Cooperation (DCI) : + 7.2% Instrument for Stability: +32.2% Foreign Security (CFSP) : +16.3% Humanitarian Aid: +3.0%

Budget 2009

Food facility

€8.1bn

Commitments:€8.8 billion+ 7.5% on 2010

Margin € - 70.4 million* €7.9bn

Budget2011

€8.8bn

Payment appropriations:€7.2 billion- 7.1% on 2010

* The margin does not take into account the appropriations related to the Emergency Aid Reserve (253.9 Million).

EUR 71 million above the ceiling is financed by the mobilisation of the Flexibility Instrument

Evolution Heading 4

Promoting EU Values

€ 844 million

Budget 2011

04/19/23 ©European Commission

Multiannual Financial Framework – Heading 5Administration

No New Posts for the Commission in 2011

Commitments:€8.2 billion +3.4% on 2010

Margin €243 million

Payment appropriations:

€8.2 billion +3.4% on 2010

Budget 2011

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Growth and Jobs

Supporting the EU economy post-crisis

Budget heading 1 “Sustainable growth”

Payment appropriations:€53.3 billion+11.8% on 2010

€47.7 bnBudget

2010

€53.3 bnBudget

2011

Energy Projects to aid economic recovery € 1.0 billion

FP7 + 5.8% Egnos/Galileo + 16.4% Structural Funds +15.3% Cohesion Fund +11.3%

Commitment appropriations:€64.5 billion+0.4% on 2010 including European Economic Recovery Plan

Budget 2011

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Flagship Initiative: "Innovation Union"

To improve framework conditions and access to finance for research and innovation so as to strengthen the innovation chain and boost levels of investment throughout the Union

“The aim is to re-focus R&D and innovation policy on the challenges facing our society, such as climate change, energy and resource efficiency, health and demographic change. Every link should be strengthened in the innovation chain, from 'blue sky' research to commercialisation.”

Research: Innovation Union

Budget 2011

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• Global envelope: € 54.5* billion 2007-2013• Budget 2011: € 8.6 billion

FP7 EC: € 8.0 billion Indirect actions (operational budget: € 7.5 billion)

% 2011/2010• Cooperation (collaborative research) € 4.6 billion +12.4• Ideas (frontier research) € 1.3 billion +18.3• People (human potential) € 0.8 billion +41.2• Capacities (research capacity) € 0.7 billion +9.8

Direct actions (JRC – oper. & admin.) € 0.3 billion +3.6

FP7 EURATOM: € 0.6 billionIndirect actions (operational budget: 0.5 billion)

% 2011/2010• Fusion energy, ITER & Fission € 0.4 billion +3.1• Fission € 0.1 billion +4.0

Direct actions (JRC – oper. & admin.) € 0.1 billion +2.8

* - Including indicative amounts for Euratom in 2012-2013.

Research framework programmes

Budget 2011

04/19/23 ©European Commission 15

+15.3%

Youth

• Life Long Learning Programme €1.2 billion over 290.000 individual grants, including:– over 200.000 Erasmus grants– over 70.000 Leonardo da Vinci grants

• Youth in Action Programme €0.1 billion– around 120.000 participants– over 5.300 participants in the European Voluntary Service

• People: Mobility for young researchers €0.8 billion

Europe 2020flagship: Youth on the move

€ 2.1 billion

Europe 2020flagship:

Innovation Union

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European Social Fund €10.9 billion for training, employment or guidance of over 9 million citizens

Globalisation Adjustment Fund €500 million /yearly

for workers suffering from the consequences of major structural changes in world trade patterns

European Microfinance Facility €25 million for launching micro-businesses

Social policies

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• Instrument for pre-accession (IPA) €1.8 billion• European Neighbourhood Instrument (ENPI) €1.8 billion

– Of which Palestine €300 million• Development Cooperation Instrument (DCI) €2.6 billion

• Others €2.5 billion– Of which Human Rights €167 million– Of which Foreign Policy (CFSP) €327

million– Of which Humanitarian Aid €825 million

2011 External Relations Priorities

Budget 2011

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Launching a decade of smart, sustainable and inclusive growth

Budget 2011

Europe 2020Budget Review

€ 57.9 billion from Budget 2011 linked to EU 2020 flagship initiatives

Budget Review

Financial Framework post 2013

Budget 2011

04/19/23 ©European Commission 19

f

Flagship 1: Innovation Union

B 2011 € 21.9 bn

Flagship 2: Youth on the move

B 2011 € 1.1 bn

Flagship 3: A digital agenda

for Europe

B 2011 € 2.4 bn

Flagship 4: Resource

efficient Europe

B 2011 € 21.1 bn

Flagship 5: An industrial policy for the

globalisation era

B 2011: € 0.8 bn

Flagship 6: An agenda for

new skills and jobs

B 2011 € 9.0 bn

Flagship 7: European Platform

against Poverty

B 2011: € 1.6 bn

Budget 2011 commits € 57.9 billion to Europe 2020 flagship initiatives