The 2008 EU financial report was presented by Budget Commissioner Algirdas Šemeta early last week, on 22 September. According to the Commission’s press release, the budget has succeeded in providing continued and stable funding as well as avoiding placing additional financial burdens on Member States, in a year characterised by significant economic turbulence.

Agriculture Budget Breakdown

Spending on agriculture was comparable to that of 2007, although farm payments under Pillar 1 of the CAP continued to follow its slight downward trend accounting for 37 per cent of the budget, with a total of €43.3bn allocated to direct payments and market interventions - marginally lower than 2007. Rural development, environment and fisheries also suffered a decrease in expenditure from 10.5 to 10 per cent of the overall EU budget, totalling €11.5bn.

Budget Allocation

In relation to the recipients of the agricultural budget in 2008, France continues to be the biggest beneficiary, receiving €10bn in support. Spain is second in line receiving €7.1bn, followed by Germany with €6.6bn. The UK received €3.8bn of agricultural funds and €2.1bn under the structural funds as well as its €6.3bn rebate.

Overall 2008 saw over half of all Member States failed to take full advantage of the full amount of money available under the EU’s structural and cohesion funds from the previous 2000-2006 programming period, with an average implementation rate of 90 per cent Spending rates for the new programming period spanning 2007-2013 will be available at the end of 2009.

References

1. EurActiv