The EU budget is funded almost entirely byown resources.
The basic rules for the own resources system are laid down periodically in a Council Decision (currently 2007/436/EC, Euratom). This decision must be adopted unanimously by the EU Council and ratified by every EU country.
There are 4 other acts regulating this area:
The financial framework sets the annual expenditure ceilings for a period of at least 5 years.
The current framework runs until 2013. With the entering into force of the Lisbon Treaty the regulation laying down the multiannual financial framework is integrated in Article 312 Treaty on the Functioning of the European Union. This means that as of 2013 the multiannual financial framework will be established by a unanimously adopted Council Regulation, after approval by the European Parliament.
The Commission adopted a proposal of this regulation on 3 March 2010. It takes up the financial framework annexed to the interinstitutional agreement. The proposal has not been adopted yet.
The Financial Regulation lays down the operating principles and basic rules governing the EU budget. It deals thoroughly with budget implementation and control issues.
The technical details are laid down in its Implementing Rules, which are adopted by the Commission.
The Financial Regulation is revised every 3 years .
The Commission has proposed a revision of the Financial Regulation following the entry into force of the Lisbon Treaty and the creaation of the European External Action Service.