Politics update from John Birchall
As if by magic Mr. Cameron suddenly remembered during the third ‘Leaders Debate’ that he had not mentioned the EU and more importantly its single currency – the Euro. One wonders if it was part of a hit list that he knew would appeal to ‘Middle England’ as it was soon followed by immigration!
Let’s look at just what goes where within the EU.
In 2009 the EU was expected to spend Euro 133.8 billion, which is 1.03% of members earnings – that is member States. The most recent figures are for 2007 and show just who paid what into the total budget.
Source: Eurostat, Brussels.
The largest area of expenditure remains Agriculture, which accounted for almost 47% of spent funds in 2007. Agricultural subsidies and rural development projects swallowed 47% of the money spent by the EU in 2007, with France receiving the largest share.
France has traditionally been the biggest recipient of these funds but if this spending is worked out as a percentage of gross national income (GNI), then Lithuania and Greece top the table, receiving 1.8% and 1.6% of GNI and this measure France in 12th place receiving 0.6% of GNI.
Who gets what from the Agricultural Budget – not adjusted for size of economy – see above
Source: Eurostat, Brussels.
In the coming decade the largest recipient of funds will be Regional Policy and Research.
Regional Policy currently receives 32% of monies available within the total EU budget but this is set to rise. The purpose of this fund is to build stronger and more prosperous economies across the EU and especially in those who joined in 2004. The monies will also be directed to countries joining in the future, such as Croatia and other Balkan states.
Regional Policy
If Research is then by the end of the current accounting period, 2013, the combined amounts spent on Research and Regional Policy will be a little less than that on Agriculture. Within the next budget period, seven years from 2013 this ector will be the largest single area of spending within the EU.
Research Expenditure
Source: Eurostat, Brussels.
Foreign Aid
Source: Eurostat, Brussels.
The EU is the world's largest aid donor, if you include donations by individual member states.
Within the member states, spending is mostly focused on the countries along the EU borders. This money funds cross-border projects to foster good relations with neighbouring countries, which may also receive direct funds for other projects. Money is also given to candidate countries, such as Turkey and Croatia.
Development aid goes to reduce poverty and boost economic development in Latin America, Asia, Central Asia, the Middle East and South Africa.
Just a few of the figures that don’t always enter the EU debate.