Commission presents 2009 EU budget

EU budget discussions for next year kicked off officially yesterday when the EU executive presented its spending proposals for 2009.

Budget Commissioner Dalia Grybauskaite said during a press conference that the EU's budget will rise by three per cent on 2008 reaching a total of €134.4 billion in commitments and €116.7 billion in payments.

"This is a stable, realistic budget where we have managed to shift the centre of gravity of spending firmly to long-term economic development and employment without putting other areas at risk," she said.

According to the Commission's proposals, still to be discussed and approved by the European Parliament and the Council, long-term economic progress and employment will remain firmly at the top of European Union spending, taking the biggest share - nearly 45 per cent - of the proposed 2009 budget.

The proposal also highlights the growing trend to gear policy spending towards the energy and environment, with a massive 10 per cent of the budget going on environment. Money for agriculture will remain stable at €42.9 billion.

The new member states will also see more money flowing into their direction.

Programmes to support cohesion across Europe will receive a total of €48.4 billion - up 2.5 per cent on last year, strengthening regions' competitiveness as well as improving cross-border cooperation.

Of this, almost €40 billion will go to the structural funds and over €9 billion for the cohesion fund - 14 per cent up on 2008.

An important development is that spending on structural actions for the new member states will grow, hitting the 50 per cent mark - double the share for new members in 2006 and up from 47 per cent in 2008.

The "phasing-in" of new members to regular levels of aid in agriculture will also see overall spending rise, growing by five per cent, with the new members receiving 18 per cent of funds - up from 16 per cent in 2008.