General budget of the European Union for the financial year 2007.

Abstract

2007 is the first budget under the new multiannual financial framework, which will cover the period up to 2013, and the first for the enlarged European Union of 27 Member States. The 2007 budget will support a new generation of programmes focusing on the Union's key priorities, in particular on sustainable growth and employment. The budget for 2007 amounts to EUR 126.5 billion in commitment appropriations. This represents 1.08% of Community GNI, and is an increase of 5% on the 2006 budget. A margin of EUR 1.85 billion remains available under the ceiling of the new financial framework. Payment appropriations of EUR 115.5 billion have been agreed, or 0.99% of GNI. This represents an increase of 7.6% on 2006. This is a realistic assessment of the needs for payments in a year where many new programmes will start. The key priority for the European Union remains growth and employment. The Lisbon Strategy has set out the path to attaining this growth and to increasing employment, and both the structure and resources of the 2007 budget reflect this. In commitments, EUR 54.9 billion or 15.4% goes directly to activities vital to the Lisbon Strategy, via such programmes as Competitiveness and Innovation (CIP), Trans-European Networks (TENs) for transport and energy, Lifelong Learning, and the 7th Framework Programme for Research. The new European Globalisation Adjustment Fund will provide extra support of up to EUR 500 million per year to help those workers severely affected by globalisation. Commitments for the Structural and Cohesion funds increase by 14.8% to EUR 45.5 billion, with all Member States fully participating in the new generation of programmes. The preservation and management of the Union’s natural resources continues to receive valuable support. Commitments for rural development will increase to EUR 12.4 billion (+3%), and budgetary support for environmental policy increases by 17.9%. Agricultural expenditure and direct aids remain fairly stable at EUR 42.7 billion. Budget 2007 will fund the launch of a new generation of programmes necessary for the realisation of a European area of freedom, security and justice, notably in relation to fundamental rights and justice, security and safeguarding liberties, and solidarity and management of migration flows. Commitments increase by 12.8% to EUR 623.8 million. Under the umbrella of Citizenship, the Commission proposes a number of programmes which aim at promoting a better understanding of the European Union among its people, and addressing their daily concerns. For 2007, EUR 623.2 million is committed for improving health and consumer protection, for programmes to foster European culture and diversity, and for communication actions. The enlarged EU has a growing role to play as a global partner, and a total of EUR 6.8 billion is budgeted for 2007 to cover the policies of pre-accession, neighbourhood, development cooperation, humanitarian aid, democracy and human rights, the Common Foreign and Security Policy and the Stability Instrument. This represents an increase of 4.5% for the beneficiaries concerned. The increase for Administration (+5.1%), can largely be explained by the evolution in the number of posts, itself explained by the ongoing needs related to enlargement Also related to enlargement, Heading 6 Compensation sets aside EUR 444.6 million to help improve cash-flow in the national budgets of the acceding states (Cash-Flow Facility), and to finance control actions at the new external borders of the EU (Schengen Facility), as agreed during the accession negotiations with Bulgaria and Romania.