Budget

One-minute summary

The EU's budget is about 1% of GDP. This gives the lie to the eurosceptic myth that the EU is some kind of centralised superstate - by comparison, the US, which has a highly decentralised federal structure, still has a central budget of around 40% of GDP!

The UK's gross contribution to the EU is in line with our wealth, but our net contribution (i.e. what we put in minus what we get back) would be disproportionate without our annual budget rebate. This is mainly because about 40% of EU spending goes to support the EU's farmers, support from which other countries such as France benefit more than the UK.

Each year's budget is agreed within a longer-term framework known as the 'Financial Perspective'.

The European Parliament is the holder of the EU's purse-strings, with control over every detail of the budget (except agricultural spending and a few other very small areas). This is one of the main ways in which directly-elected MEPs supervise the day-to-day running of the EU.

• See also: Common agricultural policy

Labour views

• Terry Wynn MEP: A detailed briefing on the budget and why it attracts criticism.

Other views

• European Anti-Poverty Network
• UK Independence Party: "I find it very difficult to take seriously a debate about a voluminous document that only a real euro nerd would be able to read, let alone understand."

Reference materials

• European Commission on the budget: A summary of the EU budget and how it is agreed.
• European Commission on how the budget is financed: In-depth information.

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