EMBARGO PRESS 12 30 Preliminary Draft Budget 2009

EMBARGO PRESS 12. 30 Preliminary Draft Budget 2009 Financing strategic objectives, Addressing challenges ahead Presentation by Dr. Dalia GRYBAUSKAITE Commissioner for Financial Programming and Budget European Parliament, Brussels, 6 May 2008 1

Budget 2009: translating goals into action o Raising investment in economic growth and jobs; o Reflecting key policy priorities in line with the Lisbon Treaty: n Focusing on research to unlock innovation; n Asserting leadership in protecting the environment; n Boosting sustainable energy development; o Ensuring continuity of funding for other actions and areas; o Speeding-up integration of EU-12 into common policies; o Operating globally for peace and stability; ©European Commission 2

PDB 2009 – Key Figures o Commitment appropriations n n n o € 134. 4 billion 1. 04% of EU GNI +€ 4. 1 billion, +3. 1% compared to 2008 Payment appropriations n € 116. 7 billion 0. 90% of EU GNI n -€ 3. 9 billion, -3. 3% compared to 2008 n ©European Commission 3

PDB 2009 by Heading COMMITMENT APPROPRIATIONS Billion € BY HEADING % of total budget % change from 2008 1. Sustainable growth: Competitiveness Cohesion 60. 1 11. 7 48. 4 44. 7% 8. 7% 36. 0% +3. 0% +5. 5% +2. 5% 2. Preservation and management of natural resources: Direct payments & market related expenditure Rural development, environment, fisheries 57. 5 42. 8% +3. 5% 42. 9 14. 6 31. 9% 10. 9% +4. 5% +0. 8% 1. 5 0. 9 0. 6 1. 1% 0. 6% 0. 5% +8. 6% +15. 0% 4. The EU as a global partner 7. 4 5. 5% +1. 8% 5. Administrative expenditure (for all EU institutions) of which Commission 7. 6 3. 6 5. 7% 2. 7% +5. 0% +4. 5% 6. Compensation for Bulgaria & Romania 0. 2% +1. 2% Total commitments € 134. 4 100% +3. 1% In % of EU-27 GNI 1. 04 3. Citizenship, freedom, security and justice * Freedom, Security and Justice Citizenship +1. 0% * Excluding Solidarity Fund ©European Commission 4

Share of spending areas by headings, in % Total of € 134. 4 billion (commitment appropriations) ©European Commission 5

Investing more in economic progress Competitiveness & Cohesion (commitment appropriations) • Trend confirmed: constant rise in funds for growth and jobs; • Progress in line with Lisbon treaty objectives ©European Commission 6

1 a. Competitiveness for Growth and Employment (in EUR million) Ceiling CA 2008 PA 2008 11 272 11 690 +5. 5% 10 285 +5. 3% Margin = 82 * Some examples: o Research Framework Programmes: +10% o Competitiveness and Innovation Framework Programme: +17% o Lifelong Learning: +7% (Erasmus Mundus: +1% ) *Margin does not take into account the European Globalisation Adjustment Fund (EUR 500 mio) ©European Commission 7

1 b. Cohesion for Growth and Employment (in EUR million) Ceiling CA 2008 PA 2008 48 428 48 414 +2. 5% 34 914 -13. 9% Margin = 14 Strengthening regional policy: o Cohesion Fund: +14% Balancing funding for MS: o Share of EU-12 reached 50% ©European Commission 8

Regional policy: balancing funding for States • Phasing-in Cohesion and structural funds continues; • Share of EU-12 reached 50% ©European Commission 9

2. Preservation and Management of Natural Resources (in EUR million) Ceiling CA 2008 PA 2008 59 639 57 526 +3. 5% 54 835 +3. 0% Margin = 2. 113 Some examples: LIFE+: tackling environmental challenges: +8% Direct aid and Market related expenditure: +5% (due to phasing-in of new members) European Fisheries Fund: +3% ©European Commission 10

Agriculture: phasing in of EU-12 ©European Commission 11

3 a. Freedom, Security and Justice (in EUR million) Ceiling CA 2008 PA 2008 872 839 +15. 0% 597 11. 7% Margin = 33 Security and safeguarding liberties: +32% Management of migration flows: +17% ©European Commission 12

3 b. Citizenship (in EUR million) Ceiling CA 2008 PA 2008 651 629 -28, 8 669 -31. 4 Excluding Solidarity Fund and Transition Facility for Bulgaria/Romania Ceiling CA 2008 PA 2008 651 629 +1. 0% 619 0. 7% Margin = 22 Europe working for its citizens Culture: +11% Audiovisual and Media: +4% Health and consumer protection +5% ©European Commission 13

4. The EU as a Global Partner (in EUR million) Ceiling 7 440 CA 7 440 2008 +1, 8% Margin = 244 * PA 7 580 2008 -6. 6% Some examples: o Instrument for stability: +43% o Instrument for Preaccession (IPA) +3% o Democracy and Human Rights: +3% o Development Cooperation Instrument: +5% o Humanitarian aid: + 3% *The margin does not take into account the Emergency Aid Reserve (EUR 244 million) ©European Commission 14

5. Administration (in EUR million) Ceiling CA 2009 PA 2009 7 699 7 648 +5. 0% Of which Commission (Excluding pensions and European schools) 3. 561 +4. 5% 3. 561 +4. 4% Margin = 129 * o 250 enlargement posts o Other needs covered through redeployment (293 posts) o Pensions for all institutions +7. 6% * The margin is calculated including footnote (1) of the financial framework 2007 -2013 for an amount of EUR 78 million from the staff contributions to the pensions scheme. ©European Commission 15

Recruitment of EU-12 Further approaching the 2008 aim EU-12 Recruitment target 2007 -2008 Recruited on 16. 04. 2008 In % of target 2008 3 880 3 662 94% * scope: officials and temporary agents, Operating Establishment Plan and Offices, including those who left the Commission ©European Commission 16

Budget 2009: the key accents o Relevance: new goals driven by new realities – accounted for, new priorities highlighted in the Lisbon Treaty - considered; o Consistency: trend to modernise EU spending – secured and reinforced; o Focus: investment in economic progress – the largest share of spending; o Certainty: all needs in all areas respected – stability of funding in all other policies firmly guaranteed; o Solidarity on the ground: EU-12 become full participants of EU common policies; o Coherence: changes in spending fully match most common ideas coming from Consultation on budget reform. The spending structure is being refocused to address new challenges and reach new goals. Accelerating progressive changes in EU spending is still a vital necessity. ©European Commission 17