IP/09/655 Brussels, April 29 2009EU budget 2010 targets recoveryThe Commission today adopted a €139bn preliminary draft budget for 2010. Economic recovery is at the heart of next year’s spending and the proposal channels the biggest share of funds (45%) into growth and employment measures – a 3.2% rise on 2009 – to help restore competitiveness across the Union. Funds for major programmes linked to research and energy will increase by more than 12% and cash for cohesion policy will grow too, with the EU-12 set to receive 52% of cohesion and Structural Funds. All headings in the budget will see an increase, reaching a total of €138.6bn in commitments (1.18% of GNI) and €122.3bn in payments (1.04% of GNI). Presenting the proposal, Siim Kallas, Vice-President for Administrative affairs, Audit and Anti-fraud and responsible for Financial Programming and Budget said: "This budget targets measures to help avert an even sharper downturn. €6bn will go into research and innovation while some 9 million citizens will receive support through the European Social Fund.” He added “2010 will also see the second phase of the EU budget’s contribution to the recovery plan secured bringing the total of extra crisis funds to more than €6bn for the period 2008-2010". €62 billion for jobs, infrastructure, competitiveness Channelling funds into projects to save and create jobs, help companies and restore competitiveness will be the EU's top priority. Trans-European transport and energy networks will receive 12.7% more funding compared to 2009 (€1.08bn) and the Competitiveness and Innovation programme (CIP) will grow by 3.3% (€0.5bn). 2010 will be the European Year for Combating Poverty and Social Exclusion with a budget of nearly €20m and a range of initiatives planned for all Member States. For its second year, the EU’s flagship satellite navigation project Galileo will receive an additional 8% in funding (€0.9bn). Top slice of cohesion funds to go to EU-12 As part of the €62bn set for jobs and competitiveness, €49bn will go towards cohesion in the EU-27. The trend to phase-in funding for the Member States that joined the EU in 2004 and 2007 (EU-12) is continuing. For the first time ever, the EU-12 will receive the biggest share of the EU’s Cohesion and Structural Funds (52%). Agricultural support for these regions will also grow, making a real impact with the EU-12 now receiving nearly 20%, €11bn in agricultural support. Thanks to the CAP, the single market and higher market prices, farmers’ income in the EU-12 is now 47% higher than before accession. Funding for natural resources in the EU-27 stands at €59bn and, as part of this, spending for environment and rural development will grow by nearly 2.5% to almost €15bn. Second phase of financing for the European Economic Recovery Plan April 2009 saw the European Parliament, Council and Commission agree on the need for a fresh €5bn to finance major European projects in the areas of energy and broadband infrastructures and to face new challenges in rural areas linked to the CAP health check. Following the first injection of €2.6bn in 2009, a further €2.4bn in will be added to the 2010 budget, the source of the funds being decided later on in the 2010 budget procedure. € 8 billion in external aid In 2010, the EU will continue its efforts to help poorer countries and maintain a strong stance on the world stage so it can meet global challenges like climate change, food security and globalisation. The EU's aid to developing countries channelled through the Development Cooperation Instrument will increase by 1.7%, reaching €2.4bn. Pre-accession assistance (IPA) increases by nearly 5%, €1.6bn. Funding for the EU’s Common and Foreign Security Policy (CSFP) will rise by 16% (to €282m). The last part of the €1bn Food Aid Facility will also be financed in the 2010 budget (€170m). Making the EU a safer place for all The part of the budget to receive the biggest boost in spending (in line with the EU’s seven-year financial programming) will be projects to fight crime, terrorism and manage migration flows, increasing by 13.5% to almost €1bn. More generally, administrative expenditure for all EU institutions will grow moderately by 2.1%, with the European Commission's own expenditure increasing by less than 1% (0.9%) at €3.6bn. Background The budget forecasts both commitments (legal pledges to provide financing, provided that certain conditions are fulfilled) and payments (actual cash or bank transfers to the beneficiaries). The final adoption of the EU budget will take place during the European Parliament plenary in December.