How the EU is financed• EU spends around €140 billion euro per year across the

Member States • All Member States contribute to the EU budget • In 2011, Ireland’s contribution was €1.35 bn.

• EU’s annual budget = around 1% of the EU’s national wealth • Aim: improving everyday lives • Better infrastructure, opportunities for students to study abroad,

easier access to larger markets for small businesses, or for job seekers to access training, food safety, protection of fundamental rights, etc.

• Directly or indirectly all EU citizens benefit from the EU budget

How the EU is financed (2) • NB: The EU budget only finances projects in policy areas

where all EU countries have agreed that, if they join forces at EU level, they can achieve better results at lower costs than if they acted at national level

• How is the EU budget funded? • 3 main sources: • Member State contributions, based on a percentage of their

national income • Import duties on goods entering from outside the EU • A percentage of each Member State’s national VAT rate

How is the EU budget spent? • Budget agreed annually • 2011 budget totalled €141.9 billion • Long-term strategic approach to budget planning: the

“financial framework” • 7 year financial framework expires at end of 2013• New Multiannual Financial Framework (MFF): 2014 – 2020 • 6main areas of budget expenditure • Sustainable growth • Preservation and management of natural resources • Citizenship, freedom, security and justice • The EU as a global player • Administration • Compensations

EU Budget

45%

42%

6%6%

1% 0.1%

EU Budget

Sustainable growth Natural Resources Citizenship, freedom, security

EU Global Player Administration Compensations

Source: European Commission

Expenditure • Sustainable growth • Promoting growth and employment through increased

competitiveness and cohesion: research and innovation, education and training, social policy, economic integration, inter-regional cooperation and convergence of the least developed EU countries and regions

• Preservation and management of natural resources• Common Agricultural and Fisheries policies and environmental

measures • Citizenship, freedom, security and justice• Justice and home affairs, border protection, immigration and

asylum policy, public health, consumer protection, youth, and information and dialogue with citizens

Expenditure (2) • The EU as a global player • External Action (foreign policy) by the EU

• Administration • Administrative expenditure of all the European Institutions,

pensions and the “European Schools” *• *: 14 European Schools in 7 countries: Belgium, Netherlands,

Germany, Italy, UK, Spain and Luxembourg with 24,000 pupils • Multilingual and multicultural education for all levels • Jointly controlled by governments of the Member States

• Compensations• Temporary heading which includes compensatory payments

relating to the latest expansion of the EU

EU Budget :who is involved?

Parliament Council Commission

Drafting: Commission drafts, Council and Parliament approve

Parliament ultimately responsible for adopting the budget

EU Budget: who is involved?

Member States Commission

Managing: Commission is responsible for implementing the budget

75% of budget distributed directly to Member States who are responsible for allocating funds. Member States report back to Commission on how money was spent.

EU Budget: who is involved?

• Accounting: Expenditure is audited by Commission

Court of Auditors EU Commission

Commission is accountable to Court of Auditors for how EU money is spent.

What about Ireland?

• Some Member States contribute more money than they receive back in funding each year: net contributors

• Some receive more than they pay: net recipients • Ireland has been a net recipient since it joined in 1973 • 1973 to 2011: Ireland received €67 billion in EU funding and contributed €25 billion

= net recipient of €42 billion • EU funding for: • Common Agricultural policy • Cohesion and Structural funds for investment in infrastructure and human capital

including education and training• Fisheries, research, globalisation fund, etc.

• The European Globalisation Adjustment Fund (the EGF) was established in December 2006 to support workers made redundant as a result of major changes in global trade patterns. The purpose of the EGF is to provide relevant supports to redundant workers to assist them back into employment. The scope of the EGF covers education and training programmes, career advice and guidance, and enterprise supports. See more at: http://egf.ie/about-egf/

Impact of EU Membership on Ireland http://www.eumatters.ie/ireland-and-the-eu.htmlhttp://ec.europa.eu/ireland/ireland_in_the_eu/impact_of_membership_on_ireland/index_en.htm

• “What has the EU ever done for us?” : It’s a matter of opinion…..

• http://www.independent.ie/opinion/analysis/john-downing-so-what-did-the-european-union-ever-do-for-us-a-heck-of-a-lot-as-it-happens-28952387.html

• http://www.whathaseuropedone.eu/