©European Central Bank,
Frankfurt am Main, Germany

At its meeting on 17 July 2008, the Council opened the budgetary procedure with the first reading of the preliminary draft budget of the European Union for 2009. In reality, the procedure had already begun with "trialogue" meetings between the Commission, the Council and the European Parliament, at which the three institutions presented their respective budgetary priorities. Those discussions enabled the Commission to draw up the preliminary draft budget, submitted on 6 May 2008.

The budget is prepared on the basis of the multiannual financial framework, setting caps for the six general budget headings, for the period from 2007 to 2013. This method has the advantage of ensuring funding for EU action throughout its lifetime.

The procedure sets the annual budget framework and the allocation of appropriations within the headings. Expenditure is broken down into commitment appropriations (the overall resources which the EU can allocate to fund action) and payment appropriations (the payments to be made in order to cover expenditure incurred in implementing action for the financial year concerned).

The EU's revenue comes from its "own resources"", i.e. customs duties charged on non‑agricultural imports from non‑member countries and import duties charged on agricultural products imported from non‑member countries, and from Member States' VAT‑based contributions and Member States' contributions based on EU gross national income.

Budget implementation has to observe budgetary discipline (expenditure cannot exceed appropriations) and the principle of sound financial management (budgetary resources must be used economically and efficiently).

The draft budget as approved by the Council amounts to:

- EUR 133 932 757 913 in commitment appropriations;
- EUR 114 972 328 243 in payment appropriations.

In the 2009 budget, the lion's share of expenditure is earmarked for growth and employment. The budget also involves a significant increase in environmental investment.

The process of negotiation with the European Parliament has now begun, with a conciliation meeting with a European Parliament delegation, before the Council's first reading and submission to the European Parliament of a draft budget.

The budget will undergo a first reading by the European Parliament, which may put forward amendments. After a further conciliation meeting with the European Parliament, the Council will take a decision on the proposals at a second reading, in November 2008. The budgetary procedure is formally completed with the signing of the budget by the President of the European Parliament.

For further information:
Council press release (FR) (pdf)

Preparations for the WTO negotiations

EU trade ministers met in Brussels on 18 July to prepare for the upcoming talks in the framework of the World Trade Organisation (WTO). In the week of 21 July, ministers from over 30 major trading powers will come together at WTO headquarters in Geneva to seek agreement on modalities for trade in agriculture and industrial products - two key issues of the so-called Doha Development Agenda (DDA). The stated aim of WTO Director-General Pascal Lamy is to conclude the negotiations on these areas by the end of the year.

EU ministers held a first exchange of views on the latest negotiating texts circulated by the WTO.

These documents outline proposals for reductions in import duties, tariffs and agricultural subsidies and a further opening of markets by both developed and developing countries. The Council will continue its work in Geneva, giving further guidance to the Commission, which it has mandated to negotiate for the EU.

The DDA was launched at the WTO's fourth ministerial conference in November 2001 in Doha (Qatar) with the aim of bringing down barriers to global trade and integrating developing countries, especially the poorest countries, better into world markets. The Agenda provided a framework for further negotiations on a broad range of issues, such as market access for agricultural and non-agricultural goods, as well as services, trade facilitation and the environment, with a special focus on the needs and interests of developing countries, which constitute the majority of the current 152 members of the WTO.

For further information:

Council presse release(FR) (pdf)

Forthcoming events
General Affairs and External Relations Council meeting on 22 and 23 July 2008

Justice and Home Affairs Council meeting on 24 and 25 July 2008