The Annual EU Budget

The annual budget of the EU takes its point of departure in the agreement about the multiannual financial framework, which the Member States have agreed upon. The annual EU-budget contains a more detailed distribution of the means and shows the planned expenditures for EU’s activities and programmes. In 2011, the payment appropriations of the EU budget amount to around 19.5 billion DKK.

The budgetary procedure
The annual budgetary procedure is initiated in February/March. The general practise is that the ECOFIN Council defines the guidelines for the annual budget of the following year. Against this background, the Commission determines its draft budget in May. The draft budget undergoes a reading by the two budgetary authorities The Council and the European Parliament, before agreement is to be reached in a conciliation procedure. In the Council, the task is carried out by the budget-ECOFIN, which is composed of the Member State’s Economy-, Finance-, or Budget Ministers.

The budget-calendar – An overview:

May: The Commission puts forward its preliminary draft budget for the next year

July: The Council carries out its reading of the budget (Budget-ECOFIN)

October: The European Parliament carries out its reading

October/November: Conciliation procedure

December: Final adoption by the Parliament and the Council

Usually, there will be need for making certain adjustments during the budgetary period which follows the adoption of the budget. This is due to necessary corrections – e.g. as a result of changed needs for agricultural market subsidies or changed needs for means to structural funds. The adjustments are carried out through supplementary budgets, which shall be approved by the Council.
 
The Engagement of the Ministry of Finance
The Ministry of Finance is responsible for coordinating the Danish handling of EU budget related issues that has significant financial implications. This involves process management in connection to the determination of the annual EU budget as well as determining the Danish position on proposals involving financial consequences for the state. Thus, it is the responsibility of the Minister of Finance to obtain a mandate for negotiation in the European Affairs Committee of the Danish Parliament in cases concerning the budget. Likewise, the Minister of Finance also consults the Financial Committee of the Danish Parliament in relation to the reading of the draft budget.

A budget attaché is connected to the Danish EU-Representation in Brussels. The attaché follows the cooperation concerning the EU-budget closely and refers to the Ministry of Finance in that regard.

Additional information is available on the following websites:

The Commision's budget
Budget-ECOFIN
ECOFIN-council
The Multiannual Financial Framework