The EU budget is regulated by 3 types of legal acts:
The agreements are unique to the budget – they have no equivalent in other areas of EU law.
The EU budget system is defined in:
The principles set out in the treaties are implemented in practice by the following legislation:
- decision on the system of EU own resources
- regulation on the new financial framework for 2007-2013
- Financial Regulation and its implementing rules
The purpose of the interinstitutional agreement is threefold:
- to implement budgetary discipline;
- to improve the functioning of the annual budgetary procedure and the cooperation between the institutions on budgetary matters
- to ensure sound financial management.
A number of agreements or joint declarations have been concluded since the mid-1970s. They were incorporated, with certain updates or additions, into the Interinstitutional Agreement concluded in 1999, which in some ways constitutes a ‘Charter’ of agreements reached by the institutions on the budget.
The 1999 Interinstitutional Agreement has been replaced by a new one signed on 17 May 2006 which entered into force on 1 January 2007. The Annex of this agreement establishes the Financial Framework for the period of 2007-2013. Before 1 July 2011, the Commission will present proposals for a new medium-term financial framework (Point 30, IIA).
The Multifinancial Framework is now specifically mentioned in Article 312 of the Treaty on the Functioning of the EU.