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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 1.24% 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 2007-13; annual budget plans provide specific details regarding expenditure. During this period, for the first time all funding programmes are subject to the same timescale, including the Structural Funds and the Cohesion Fund which receive approximately 35.7% of the overall budget (equivalent to ca. €347.41 billion over seven years at 2008 prices).

For more details

A Financial Framework for the enlarged Union (2007-13) English Deutsch français

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