Slides presentation of the Report

European Commission 2007 budget in focus Dr. Dalia Grybauskaitė Brussels, 27 June 2008 Commissioner responsible for financial programming and budget 2007 – Key features Stability: slight nominal increase, no relative change in volume; Execution: active management bearing its fruit – the highest execution ever; Trend confirmed: investments in growth see the largest share; Integration: increase of new MS’ share; while biggest recipients remain the same; Lessons to learn: loss of unspent funds highlights urgency for fast, effective absorption. © European Commission 2 Stability in volume Size of the EU budget (executed payments; EUR billion) Change to previous year Size of the EU budget (current prices) (in % of EU GNI) 2007 114.0 + 6.9 % 0.93% 2006 106.6 + 1.7 % 0.93% © European Commission 3 2007 – highest execution ever Active budget management pays dividends Surplus Budget 105,684 100,000 89,515 80,000 93,853 95,750 92,610 101,807 107,378 120,000 113,846 60,000 40,000 20,000 11,613 15,003 7,413 5,470 2,737 2,410 1,848 1,529 Surplus 0 2000 2001 2002 2003 2004 2005 2006 2007 (EUR million) © European Commission 4 How was the money spent? Economic progress - at the heart of budget 2007 Citizenship, freedom, security and justice 0,9% Direct aid and market related expenditure 37,4% EU as a global partner 5,1% Administration 6,0% Compensation for BG & RO and preaccesion for EU-12 1,7% Rural development, environment and fisheries 10,5% Growth and employment 38,4% Total executed payments: EUR 114 billion © European Commission 5 Who got what in 2007? (EUR million) Largest recipients remain the same 14,000 FR, ES, DE, IT, SUM = 47,9% (EUR 50,5 billion) Compensation Administration 12,000 10,000 The EU as a global partner Citizenship, freedom, security and justice Direct aid and market related expenditure Rural development 8,000 6,000 4,000 Growth and employment 2,000 0 FR ES DE IT EL PL UK BE PT HU IE NL CZ SE RO AT DK FI LU SK LT LV BG SI EE CY MT Note: the UK correction amounted to EUR 5,2 billion in 2007. © European Commission 6 Who got what in cohesion policy in 2007? (EUR billion) 6.0 5,4 5.0 4,6 4,5 4,3 4,2 4.0 3.0 2,5 2,5 2,4 2.0 1.3 1.0 0,9 0,6 0,5 0,4 0,4 0,4 0,3 0.3 0,3 0,3 0,3 0,2 0,2 0,1 0,1 0.05 0.0 ES EL IT DE PL PT FR UK HU CZ SK LT LV RO BE FI SE AT IE NL EE SI BG DK MT 0.03 0.01 CY LU © European Commission 7 Who got what in agriculture in 2007? (EUR billion) 10,4 10,0 Rural development 8,0 7,0 7,0 Direct aid and market related expenditure 5,9 6,0 4,2 4,0 3,6 3,1 1,8 2,0 1,3 1,2 1,2 1,1 1,1 1,0 1,0 0,9 0,7 0,5 0,4 0,2 0,2 0,1 0,1 0,1 0,02 0,01 0,01 0,0 FR ES DE IT UK EL PL IE PT NL DK AT SE FI HU BE CZ LT SK LV SI EE CY LU RO MT BG © European Commission 8 Integration on the ground: steady increase in share for EU-12 18,0% 17,0% 16,0% Share of EU-12 % EU GNI 17,0% 15,0% 14,0% 13,0% 12,0% 11,0% 10,0% 9,0% 8,0% 7,0% 6,0% 5,2% 5,0% 4,0% 3,0% 2,0% 1,0% 0,0% 2004 2005 2006 2007 5,9% 7,6% 6,7% 6,2% 10,4% % EU allocated expenditure 12,9% © European Commission 9 Who lost what in 2007? A T (€1, 1 m) SK (€1, 4 m) LU (€3, 5 m) SE (€3, 6 m) B E (€5, 1 m) P T (€9, 1 m) SI (€0, 2 m) DK (€0, 15 m) GR (€0, 13 m) A wake-up call to use remaining funds DE (€66 m) FR (€15 m) E S (€16, 7 m) NL (€19, 9 m) I T (€35, 8 m) UK (€20, 4 m) I NT E RRE G* (€28, 8 m) De-commitments from previous financial framework (2000-2006): EUR 227 mln. © European Commission 10 Previous programming period: money still to be absorbed The execution of structural and Cohesion funds from period 2000-2006 Ratios payments/commitments 100% 90% 92 92 91 89 88 82%-Average implementation rate as of June 2008 86 85 85 85 85 82 81 79 78 71 69 68 60 67 66 66 64 63 63 60 59 80% 70% 60% 50% 40% 30% 20% 10% 0% Ir e la nd Au st r ia G er m an y Sw ed en Fi nl an d Fr an ce Po U rtu ni te ga d l K in gd om Be lg iu m Sp ai n M al ta ly I ta k re ec Lu e xe m bu rg Es to ni a Sl ov en ia H un ga ry Li th ua ni a Sl ov ak ia La tv ia Cz Po ec la n h Re d pu bl ic Cy pr N us et he rla nd s G De n m ar © European Commission 11 Achievements and lessons Share of investment in growth in EU's economy is rising – this trend needs to accelerate; Active financial management delivering results – the highest execution yet. This effort is to be maintained; New MS’ share growing, boost from cohesion planned in 2007-2013: new speed and new quality required to make this opportunity a success; Last call to seize funding opportunities and absorb cash provided by EU budget 2000–2006. Time is running out! © European Commission 12