EU proposes smaller budget for 2009
Great news? Er, actually, no. As with all things EU, you have to look deeper, as this smaller budget is, in fact, an increase. The Guardian (May 6th) says:
The European Union's executive arm proposed an austere 2009 budget for the bloc on Tuesday, outlining plans for a cut in spending for the first time in several years.
The European Commission's draft budget set spending at 116.7 billion euros ($180.7 billion), compared with 120.7 billion euros planned for 2008, focusing as usual on aid to the bloc's poorer regions and agricultural subsidies.
EU Budget Commissioner Dalia Grybauskaite said the fall was due mainly to the bloc's budget planning cycle.
The clue is in the “ bloc's budget planning cycle”.
The budget actually increases commitments to €134.4 billion - a 4% percent increase, yes increase, but not all of those fall within the financial period. This is called a shift in "the centre of gravity of spending" with proportionally larger sums being spent on yet further integration.
Read the full analysis at EU Referendum.
