FOREIGN AGRICULTURAL SERVICE
U.S. MISSION TO THE EUROPEAN UNION

Last update:  April 1, 2008

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   EU Agriculture Budget

Budgetary Procedure | Rural Development
 

Budgetary Procedure

The budgetary procedure involves the three institutions of the EU: the European Commission, the Council and the European Parliament.  After an internal orientation debate to lay down the main political and budgetary priorities for the coming year and after a trialogue meeting between the three institutions, the Commission puts together a preliminary draft budget (PDB).  After adoption by the Commission, the PDB is sent to the budgetary authority (the Council and the European Parliament) in all EU languages.  The Commission has the possibility to propose amendments to the PDB to allow for new information that was not available when the PDB was established (e.g. policy changes, USD exchange rates). 

Adoption of the PDB involves two readings by the European Parliament and two readings by the Council.  The Parliament has the final word on “non-compulsory spending (e.g. rural development) while the Council has the final word on “compulsory spending” such as agricultural expenditure.  However, the Parliament is entitled to propose amendments to compulsory expenditure and it is the President of Parliament’s signature that makes the budget enforceable.  If Parliament and the Council fail to reach agreement on the PDB, Parliament has the right to reject the entire budget in which case the procedure must start all over again.

Timetable: 

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Debate on political and budgetary priorities within the Commission:  February

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 Adoption of preliminary draft budget by the Commission:  early May

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Publication of preliminary draft budget and transmission to the budgetary authority:  no later than June 15

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 First reading by the Council:  July

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 First reading by the Parliament:  October

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 Letter of amendment from the Commission:  no later than October 31

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 Second reading by the Council:  third week of November

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 Second reading by the Parliament and adoption of the budget: December
 

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Final adoption of the general budget of the EU for FY 2008 (Official Journal L71 - March 14, 2008)

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EU-27 | European Commission approves €187 million to fight animal diseases in 2008 
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EU-27 | EU Preliminary Draft Budget - Agriculture and Rural Development, 2008 

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2008 Preliminary Draft Budget - European Commission Presentation - May 2, 2007

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Final Adoption of the budget of the EU for financial year 2007 (Official Journal L 77 - March 16, 2007)
 

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Reforming the budget, Changing Europe - new European Commission website following the debate on the EU's future spending priorities (Sept. 2007)

Rural Development

In September 2005, the Agriculture Council formally adopted a new regulation for the implementation of the rural development policy (Regulation 1698/2005) for the period 2007-2013.  It establishes a European Agricultural Fund for Rural Development (EAFRD) and aims to simplify and better control the implementation of the new policy by introducing a single funding and programming system.  Commission Regulation 1974/2006 lays down detailed rules for the application of Regulation 1698/2005.  Commission Regulation 1975/2006 lays down detailed rules for the implementation of control procedures as well as cross-compliance in respect of rural development measures.

The new regulation focuses on three axes:

Axis 1: Improving agricultural competitiveness - gets minimum 10 percent of the Rural Development budget
Axis 2: Managing the land in an environmentally friendly sustainable manner - gets minimum 25 percent of the Rural Development budget
Axis 3: Improving the quality of life in rural areas - gets minimum 10 percent of the Rural Development budget.

Another 5 percent of the Rural Development budget will go to LEADER+ type schemes of which 2.5 percent will go to the new member states.

LEADER+ is designed to help rural actors consider the long-term potential of their local region.  Encouraging the implementation of integrated, high quality and original strategies for sustainable development.  It has a strong focus on partnership and networks of exchange of experience.  A distinctive feature of LEADER+ is the implementation of integrated development programs for local rural areas. 

  It is structured around three actions, in addition to technical assistance:

- Support for integrated territorial development strategies of a pilot nature based on a bottom-up approach
- Support for cooperation between rural territories
- Networking

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Rural Development Programs for 2007-2013  in GAIN Report E47069

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EU-27 | Financing Rural Development: EP 2007-2013  in GAIN Report E47068

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Poland | Rural Development Program 2007-2013 in GAIN Report PL7043

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More information in GAIN report E35193 "New EU Rural Development Regulation Adopted" (Oct. 2005) and GAIN report E34095 "Rural Development in the European Union".

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"Rural Development in the EU - Statistical and Economic Information - Report 2006" - European Commission/DG Agri

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"Community strategic guidelines for rural development (programming period 2007-2013) - Council Decision 2006/144/EC

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Commission Decision 2006/636/EC fixing the annual breakdown by member state of the amount for Community support to rural development for the period from January 1, 2007 to December 31, 2013.
 

 


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