EU budget 2012 to be trimmed

On 25 July, the Council adopted its position on the 2012 budget of the European Union. It takes due account of the difficult economic situation in many EU countries which have taken serious austerity measures.

The Council reduces the expenditure increase of 4.9 % proposed by the Commission to 2.02 % compared to 2011. With an expected inflation rate of 2 %, this amounts to a budget freeze in real terms. After thorough examination of past budget implementation, the Council decreased payments by a total of 3.65 billion euros.

In spite of this strengthened approach, the Council gives much importance to the financing of the EU’s priorities, such as measures to tackle the effects of the crisis and to promote jobs and growth as well as rural development.

To set a good example, the Council wants to limit increases in total EU administrative spending (buildings, maintenance, meetings, salaries) to 0.5 %. At the same time, the Council cuts its own administrative expenditure by 5.45 % compared to the current financial year. Total EU administrative expenditure represents about 6 % of the EU budget.

The Council’s position serves as a mandate to the Polish presidency for negotiations with the European Parliament, which is expected to adopt its position at the end of October. If the Parliament cannot accept the Council’s position, a three-week conciliation process will begin on 1 November.

More information:
Council calls for a tight 2012 EU budget (pdf)

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