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Budget

EU Member States contribute to a common EU budget in order to achieve common objectives.

Member States directly contribute on the basis of their gross national income (GNI). Customs duties and VAT receipts provide additional revenue. The budget ceiling is currently set at 1.23 % of EU GNI.

In terms of the budget procedure, the European Commission proposes a draft budget which reflects key EU policy objectives such as growth and jobs, research, climate change and energy. Member States then enter into negotiations with the European Parliament to amend the draft and adopt the budget. The Commission is also responsible for ensuring the EU budget is spent in accordance with the EU's Financial Regulation.

The current budget framework covers the period 2014-2020; annual budget plans provide specific details regarding expenditure. During this period, the Structural and Cohesion Funds will receive approximately 32.5 % of the overall budget, equivalent to about EUR 351.8 billion (in 2014 prices).