Based on the multiannual financial framework Regulation in force and the budget guidelines for the coming year, the European Commission prepares the draft budget and submits it by 1 September to the Council and the European Parliament. The Council first adopts its position on the draft budget by 1 October (including amendments). The position of the Parliament follows within 42 days (also including eventual amendments).
In case of divergent positions of the Council and the Parliament, a Conciliation Committee is convened with the task of reaching agreement on a joint text within a period of 21 days following the adoption of the European Parliament's position. This joint text is then subject to the approval of the Council and the Parliament within 14 days of the agreement.