Preliminary Draft Budget 2010Working towards economic recovery,

stimulating growth and innovation

Siim KallasEC Vice-President for Administrative Affairs, Audit & Anti-Fraud

Brussels, 29 April 2009

EU Budget 2010 – gearing up for growth

Focusing investments to maintain jobs and stimulate growth:

• Biggest budget share for research, education, innovation;• More funds for energy and transport infrastructure;• Stable spending to support people and businesses.

Boosting integration of EU-12 through cohesion policy and agriculture;

Increasing support for justice and security programmes;

Responding to global needs and standing by commitments to poorer countries.

Securing extra funds for European Economic Recovery Plan (EERP);

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€134 bnBudget 2009

EERP +€ 2.6 bn

€139 bn PDB 2010

EERP +€ 2.4 bn

2010: second year of European Economic Recovery Plan (EERP) – an extra €2.4bn to confirm in 2010

€129 bnBudget 2008

EU Economic Plan for Recovery (EERP - €5bn)

The EU budget as an instrument for recovery

Commitment appropriations€138.6 billion 1.18% of EU GNI+€5.0 billion, 3.8% compared to 2009 *

EU spending proposal for 2010

Payment appropriations€122.3 billion1.04% of EU GNI+€ 5.4 billion, 4.7% compared to 2009*

* Excluding Economic Recovery Plan, Solidarity Fund, Food Facility

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COMMITMENT APPROPRIATIONS

BY HEADING Billion € % of

total budget

% change from

2009*

1. Sustainable growth: Competitiveness Cohesion

62.212.849.4

44.9 9.2

35.6

+3.2+8.4+2.0

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

59.0

43.815.2

42.6

31.6 11.0

+5.1

+6.4+2.1

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

1.61.00.6

1.20.70.5

+7.6

+13.5

-0.3

4. The EU as a global player 7.9 5.7 +1.8

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

7.93.6

5.72.6

+2.1+0.9

Total commitments € 138.6 100.0 +3.8

In % of EU-27 GNI 1.18

Where EU money in 2010 could go

* Excluding extraordinary measures taken in 2009: Economic Recovery Plan, Solidarity Fund, Food Facility

5

62

60

4445

48

55

58

40

50

60

2004 2005 2006 2007 2008 2009 2010

Biggest investments to restore growth and jobs

2010: Steady rise in funds for jobs and growth

Competitiveness, growth, jobs and cohesion

Budget heading 1

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PEOPLE:9m citizens to benefit from European Social Fund in 2010

BUSINESS:+400,000 jobs for SMEs by 2013

R&D:€6.2bn for research in 2010

INFRASTRUCTURE:25,000 km road built/rebuilt

by 2013

77%EU-15

23%EU-10

Boosting integration of EU-12 into cohesion policy

2006 2008 2010

52%EU-1247%

EU-12

56% EU-15

48% EU-15

Share of Cohesion and Structural Funds: Budget heading 1b

Balancing funding as EU-12 to receive biggest share: 52%Member States now on an equal footing

commitments:

€49.4bn +2% on 2009

Cohesion Fund: +9.6% Territorial cooperation: +3.7%

Cohesion, growth, employment

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84%EU-15

16%EU-12

Phasing-in of EU-12 for agricultural support

2008 2009 2010

19%EU-12

18%EU-12

82% EU-15

81% EU-15

• EU-12 agricultural income now 47% higher since accession• 2010 to see EU-12 receive €11bn in agricultural support

total commitments for heading 2:

€59bn +5.1% on 2009*

Direct aid & Market related expenditure: +6.4% Rural development: +2.4%

management of natural resources

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(* excluding Economic Recovery Plan)

€1.3 bnBudget

2008

Making Europe and its borders a safer place for all

€1.6bnPDB 2010

€1.5 bnBudget

2009

commitments:

€1.6bn +7.6% on 2009*

Securing and safeguarding liberties 15.5% Managing migration flows +6.3% Culture +3.4%

Citizenship, freedom, security, justice: Budget heading 3*

* Excluding European Solidarity Fund

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Responding to needs beyond EU borders

€7.9bnPDB2010

Budget heading 4

commitments:

€7.9bn

+1.8% on 2009*

EU as a global partner

Food facility

Instrument for Stability: +16.7%

Pre-accession IPA: +4.9%

Common Foreign Security Policy (CFSP) : +15.9%

Budget 2009

Budget 2008

Food facility

Food facility *Excluding Food Facility

• Helping the world’s poorest recover from the downturn• A strong stance on global stage to meet global challenges:

climate change, energy, food security, globalisation…

€7.5bn

€8.1bn

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Administrative spending

€7.8bnPDB2010

Administration: Budget heading 5

Commitments:

€7.8bn

+2.1% on 2009

European Commission : +0.9%

Other institutions: +2.4%

EC administrative spending slows as enlargement needs met

€7.7bnBudget

2009

€7.6bnBudget

2008

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Share of spending areas

Citizenship, freedom,

security and justice1,2%

The EU as a global partner

5,7%

Rural development, environment,

fisheries11,0%

Direct aids and market related

expenditure31,6%

Total administrative

expenditure5,7%

Cohesion& Competitiveness for growth and

employment 44,9%

by headings, in %

Total: € 138.6 billion

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