EU Commission proposes €126.8 bln budget for 2007

The European Commission yesterday unveiled proposals for the 2007 budget, which will now be submitted for the approval of the Council and the European Parliament.

Budget Commissioner Dalia Grynbauskaite said the Commission is proposing an 11.5 per cent increase in EU funding for competitiveness and a nearly 15 per cent rise for growth and employment over last year. It is proposing a total expenditure of €126.8 billion for 2007, that is, an increase of 4.6 per cent increase in commitment appropriations when compared to 2006.

Details show that out of the total sum budgeted, €54.3 billion will go on competitiveness and cohesion policies, an increase of €6.8 billion over 2006.

Next year's budget proposals also include a total of €1.1 billion planned for expenditure on citizenship, freedom, security and justice, which will include new programmes to combat illegal immigration. This allocation has been increased by 1.2 on last year with significant increases in funding for action under justice and security.

The commissioner said the budget is more than just numbers. "This is a precise translation of the EU's political goals, mainly stimulating growth and employment, into concrete financial terms. Once implemented, this budget can make a substantial contribution to enhancing European economic competitiveness".

The budget for 2007 is scheduled to be approved by the European Parliament in December following a series of conciliation meetings between Parliament and Council.