European Union budget facts for kids
The European Union (EU) is a group of 27 countries in Europe that work together. Like any big organization, the EU needs money to operate and pay for its projects. This money is called the EU budget. It helps fund common policies and activities across all member countries. The EU has its own parliament and staff, separate from the governments of its member states. For example, the EU had a budget of around €862 billion for the period from 2007 to 2013.
Contents
How the EU Budget is Decided
Deciding the EU's yearly budget involves three main parts of the EU government. These are the Council of Ministers, the European Commission, and the European Parliament. All three groups work together to agree on how much money the EU will have and how it will be spent each year.
Where the Money Comes From
The European Union gets most of its money from its member countries. This money comes from three main types of contributions:
- Traditional Own Resources: These are like taxes collected on behalf of the whole EU. The main part of this is import duties. These are taxes on goods brought into the EU from outside. The country where the goods arrive collects these taxes. Then, they pass most of the money to the EU. Countries are allowed to keep a small part to cover their collection costs.
- VAT-Based Own Resources: This money comes from a small part of the Value Added Tax (VAT) collected in each member country. VAT is a tax added to the price of most goods and services you buy. Because VAT rates can be different in various countries, a special calculation is used to make sure contributions are fair. This calculation starts with the total VAT collected in a country.
- GNI-Based Own Resources: This is currently the biggest way the EU gets its money. Each country contributes a small percentage of its Gross National Income (GNI). GNI is a measure of a country's total wealth. A simple calculation is used to figure out how much each country should pay. The total amount of money the EU can get from GNI is limited to 1.24% of the EU's total GNI.
How the Money is Spent
The EU budget is spent on many different areas that benefit member countries. The largest part of the budget, about 45%, goes to the Common Agricultural Policy (CAP). This policy supports farmers and helps manage agriculture across the EU.
The second largest part, about 30%, is spent on regional policy. This money helps different regions in the EU grow and develop. It can be used for things like building new roads, improving public transport, or supporting local businesses.
Other parts of the budget are used for:
- Foreign policy (8%)
- Administration (6%)
- Research (5%)
Images for kids
-
MFF and NGEU expenditures
See also
In Spanish: Presupuesto de la Unión Europea para niños
