The EU budget for the period 2014-2020 is 1,082 billion euros. The Multiannual financial framework (MFF), which is the other name for the 2014-2020 EU budget, is split into six headline areas, which are (1) Smart and Inclusive Growth, (2) Sustainable Growth: (3) Natural Resources, (4) Security and citizenship, (5) Global Europe, and (6) Administration.
Traditional own resources: which consist mainly of customs duties on imports from outside the EU and sugar levies. EU Member States keep 25 % of the amounts as collection costs.
Own resources based on value added tax (VAT): a uniform rate of 0.3 % is levied on the harmonised VAT base of each Member State.
Own resources based on GNI: each Member State transfers a standard percentage of its GNI to the EU, around 1% of its gross national income (GNI).
Other sources of revenue (around 1 %) include tax and other deductions from EU staff remunerations, bank interest, contributions from non-EU countries to certain programmes, interest on late payments and fines.
For each single year the draft of the budget is prepared and then adopted as the budget for the year. The budget for 2014 has been adopted in February 2014 in Official Journal L51 of 21/02/2014. The budget for the 2014. looked as shown on the graph to the right.
The draft budget for 2015 had to be framed and sent out for approvals, also to member states by the latest on 01. July of the current year for the next year. Because of the procedure the budget for 2015 will be adopted in few month.
The Multiannual financial framework (MFF), or the EU budget for the period 2014-2020, can then be seen from many different perspectives, split for instance into policies, flagship initiatives, funds etc. The funding distribution according to the policies is illustrated in the graph.
The objectives of the strategy are also supported by seven ‘flagship initiatives’ providing a framework through which the EU and national authorities mutually reinforce their efforts in areas supporting the Europe 2020 priorities such as innovation, the digital economy, employment, youth, industrial policy, poverty, and resource efficiency.
There are two main types of EU funding: (1) funds whose management is shared between the EU and the Member States and (2) funds which are managed centrally by the European Commission. The Structural and Cohesion Funds, the EMFF and the EAFRD fall under the first category, whereas the research, environment and external action funds fall under the second. The bulk of EU spending (76% of the EU budget) involves funds which come under shared management by the EU Member States.