EU plans higher spending on eonomic growth

More European money is set to flow into economic growth and employment sector according to budget proposals from the European Commission:

Approving a plan to raise spending by an annual three percent to a record 60.1 billion Euro (USD 92.8 billion) in 2009, the Commission set funds for preserving and maintaining the bloc’s natural resources, a spending chapter that includes its expensive farm subsidies programme, with an increase of 3.5 percent to 57.5 billion Euro. Overall, the European Union executive wants to increase the 2009 budget by 3.1 percent to 134.4 billion Euro, with more money spent on research, energy and preserving the environment.

“We have managed to shift the centre of gravity of spending firmly to long-term economic development and employment without putting other areas at risk,” said Dalia Grybauskaite, the EU’s financial programming and budget commissioner:

“Investments in research, the environment and energy are growing three times faster than the budget itself, giving real financial shape to our political goals and putting taxpayers’ money where Europe’s challenges lie.”

While the budget’s biggest percentage raise, 15 percent, goes to managing immigration and fighting crime and terrorism, such spending remains about one-fifth of what is being devoted to administering the EU’s bureaucracy, with spending in this area set to go up by five percent to 7.6 billion Euro. All figures refer to forecasts for “commitment appropriations” - legal pledges to provide financing, provided that certain conditions are fulfilled - rather than “payment appropriations” actual cash or bank transfers to the beneficiaries.