All data is delayed
See More

EU approves budget for 2013

Dec 12 2012 16:44
France - EU lawmakers gave final approval on Wednesday for a European Union budget of nearly €133bn ($172bn) for 2013, removing some uncertainty around the bloc's future funding after talks on spending for 2014-2020 broke down.

The vote by the European Parliament in Strasbourg brought some clarity to EU finances at least for next year, and saw off a threat that some EU programmes, including the Erasmus student exchange scheme, would run out of money this year.

"We have managed to avoid a budgetary crisis on top of the economic crisis," Goran Farm, a Swedish socialist member of the European Parliament, said in a statement.

However, doubt still surrounds the EU's long term spending plans. EU leaders were unable to reach a compromise last month on a proposed budget of some €1 trillion between 2014-2020. 

Under the 2013 deal, EU payments next year will be limited to a maximum of €132.84bn, which represents a just-above-inflation rise of 2.9% from the original budget agreed on for this year. The vote will also unlock an extra €6bn in spending for this year.

The €6bn will fill a spending gap in research, education and employment programmes and means total EU spending in 2012 of €135bn, the highest level ever.

About three-quarters of the EU's annual budget is spent on farm subsidies and funding for new motorways, bridges and other public infrastructure projects in poorer eastern and southern European member countries.

EU leaders will hold further talks, possibly in February, to try to agree on the bloc's long-term funding.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

economy  |  budget



Read Fin24’s Comments Policy publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about:


With infrastructure spending having been identified as one of the key focus areas of the National Development Plan, tradesmen will continue to play a critical role in growing the South African economy through their skills.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

A 30% a month return on investment is:

Previous results · Suggest a vote