The EU budget in my country

Slovakia
S
Bratislava
3 T H E E U B U D G E T I N M Y C O U N T R Y S L O V A K I A
What is the EU budget?
The EU budget is an important tool that puts EU policies
into practice. It nances actions that Member States
cannot fund on their own or which they can fund more
economically by pooling their resources. The EU budget is
adopted through a democratic procedure: it is prepared
by the European Commission (the EUs executive body)
and is then discussed and agreed by the Council of the EU
(representing EU Member States, including Slovakia) and
by the European Parliament (where the democratically
elected Slovak representatives sit). Once adopted, the
budget is then managed either jointly by the EU Member
States and the Commission, or directly by the Commission.
In practice, 80 % of the EU budget is managed by national
or regional governments. Through grants, loans and other
forms of nancing, the EU budget provides nancial support
to hundreds of thousands of beneciaries such as students,
scientists, NGOs, SMEs, towns and regions.
Where does the money come from?
The EU budget is largely nanced by own resources which
are based on three kinds of sources:
customs duties on imports from outside the EU and sugar
levies;
a small part of value added tax (VAT) levied in the EU;
gross national income (GNI): each Member State transfers
a standard percentage of its GNI to the EU. This forms the
largest source of income to the EU budget (76 % in 2012).
This system has been unanimously decided on by EU
Member States for a 7-year period, and has been ratied
by all national parliaments. It aims to provide a reliable and
sucient level of revenue for the EU budget, while at the
same time taking into account the Member States ability
to pay. Each Member State thus contributes in line with its
wealth. The other sources of revenue for the EU budget
include taxes on EU sta salaries, nes on companies for
breaching competition laws and bank interests, etc. There is
no direct EU tax. EU countries remain in control of their taxes.
Did you know ?
EU funds amount to 75 % of the public
investments in Slovakia.
In 200713 EU funds for Slovakia amounted
to EUR 13.7 billion.
3.3 % of Slovakias wealth comes from EU
investment.
The EU budget supports Slovakian farmers and the
development of rural communities, for instance by
investing in projects boosting rural tourism.
The EU invests heavily in Slovakias regions, with
projects for modernising water systems and
constructing motorways.
The EU budget is YOUR budget: from scientists to
farmers, from students to entrepreneurs, we all
benefit from projects funded by the EU.
4 T H E E U B U D G E T I N M Y C O U N T R Y S L O V A K I A
Where does the money go?
Some 94 % of EU money is spent on the various EU
policies, and most of it goes back to Member States. In
many cases the EU budget supports large and complex
projects. One of them is the European Partnership Action
against Cancer, where collective European eort helps to
prevent the disease and nd a cure for it. Approximately
6 % of the EU budget is spent on the functioning of the
EU institutions. This is used to pay for the salaries and
pensions of EU employees, translation and interpretation,
security, buildings and IT systems, etc. This expenditure is
necessary in order to allow the EU to work.
The chart below provides an overview of how much the EU
invested in each of its Member States in 2012, and shows
the contribution of European funding to each countrys
wealth. In Slovakia, EU funding represents 3.3 % of the
countrys wealth (GNI).
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
0 %
1 %
2 %
3 %
4 %
5 %
6 %
1a. Competitiveness
1b. Cohesion
2. Natural resources
3a. Freedom, security
and justice
3b. Citizenship
4. The EU as a global
player
5. Administration
6. Compensation
% GNI
PL ES FR DE IT BE UK PT EL CZ HU RO SK NL IE AT LT BG SE LU DK FI LV EE SI CY MT
Who keeps an eye on EU spending?
The Commission has put into place robust internal control
measures in order to ensure that funds are spent eciently
and eectively. As 80 % of the EU budget is managed by
national or regional governments, Member States also
play an important role in ensuring that rules are observed,
and in detecting and addressing irregularities and fraud.
Additionally, the European Court of Auditors reviews the
EU accounts every year. For several years the Court has
conrmed that the EU accounts are properly kept, but also
points out errors in procedures (e.g. accounting errors by
national programme participants or claims for non-eligible
costs). Errors do not mean that EU money is lost, wasted or
aected by fraud. A large part of the money spent in error
is recovered. In addition, the European Parliament approves
how the Commission has spent the budget following the
end of every nancial year.
If you want to see which entities have received EU funding,
the nancial transparency system will show you which
entities have received payments from the EU budget.
Expenditure by Member State in 2012 (in million EUR)
5 T H E E U B U D G E T I N M Y C O U N T R Y S L O V A K I A
The EU multiannual framework
201420 in brief
Although the EU budget is adopted every year, it must be
established within the limits of the multiannual nancial
framework (MFF). The MFF is an expenditure plan setting
maximum annual amounts which the EU can spend in
dierent elds of activities over a 7-year period. It therefore
shapes the EUs political priorities for 7 years.
For the 201420 funding period, the EU wants to meet
the targets of the Europe 2020 growth strategy, focusing
on what Europe needs in order to overcome the economic
and nancial crisis and concentrating on areas where it
can make a genuine dierence. Some of the Commissions
proposals for radical reform were watered down by
Member States but very important changes remain. Key
elements of the 201420 MFF include:
a focus on growth, jobs and competitiveness with
increased investment in education and research, and a new
Connecting Europe Facility fund to boost pan-European
infrastructure projects for transport, energy and information
and communication technologies;
a higher quality of spending thanks to simpler rules for
EU funds, a clear focus on investments producing tangible
results, as well as the possibility of suspending EU funding
if a country fails to implement sound economic and fiscal
policies;
a reformed common agricultural policy for a more
competitive and environmentally friendly European
agriculture;
the fight against climate change as a key component
of all major EU policies and devoting 20 % of the
201420 MFF to actions against climate change;
solidarity with the poorest EU countries and regions by
concentrating the largest portion of regional funding in
those parts of the EU and by introducing a new youth
employment fund;
reduced administrative expenditure growth thanks to
cuts in staffing numbers at European institutions.
Too many EU
civil servants?
There are around 55 000 EU civil servants and
other employees serving 508 million Europeans
and countless people in need around the world.
By comparison, the German Finance Ministry
alone employs more people than the European
Commissions services responsible for nancial
aairs, taxation and budget (1 850 v 1 542).
Furthermore, in order to adapt to the harsh
economic situation in Europe, the EU institutions are
also cutting costs: the Commissions wide-ranging
sta reform is expected to save EUR 8 billion by
2020, reducing its sta by 5 %, while at the same
time increasing its working hours.
6 T H E E U B U D G E T I N M Y C O U N T R Y S L O V A K I A
The EU budget and Slovakia
In 2012, Slovakias public expenditure amounted to around
EUR 27 billion much less than the EUR 136 billion EU
budget for the same year. However, it represented 39 % of
the countrys GNI, whereas the EU budget for the 27 Member
States at that time was roughly 1 % of the Unions GNI.
The EU and national budgets serve dierent yet
complementary purposes. The EU budget targets areas
where EU money can generate added value. For example,
a project of such magnitude as the European satellite
navigation system Galileo could not be nanced by a single
Member State alone.
Unlike Slovakias budget or any other national budget
the EU budget does not fund defence expenditure or
social protection, but is mostly investment spending.
For example, as an eective transport network is essential
0 %
10 %
20 %
30 %
40 %
EU Slovakia
1.05 %
39 %
Administration
6 %
Citizenship, freedom,
security and justice
1 %
The EU as a global player
5 %
Natural resources
43 %
Sustainable
growth
45 %
EUR 136 billion
for a successful economy, the EU is co-nancing the
construction of a motorway linking Slovakia to Poland and
the Czech Republic.
Slovakia is one of the EU member countries that receives
more from the EU budget than it contributes, and
will remain so throughout the next budgetary period
(201420). Bear in mind that this net balance does not
accurately reect the many benets of EU membership.
Many of them, such as peace, political stability, security
and freedom to live, work, study and travel anywhere in the
Union cannot be measured.
The EU budget v national expenditure
The EU budget in 2012
7 T H E E U B U D G E T I N M Y C O U N T R Y S L O V A K I A
Growth
and jobs
3 %
Citizenship, freedom,
security and justice
1 %
Agriculture and
rural development
27 %
Regional policy
69 %
Total
EUR 2.3 billion
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In addition, European investments are intended to benet
the EU as a whole, and European funding in one country
can benet other EU Member States. Through the internal
market, Slovakian companies have unlimited access to
508 million consumers. With more than 80 % of its exports
going to EU countries in 2012, this is of signicant benet
for Slovakia. The country is also quickly catching up with
the European average in terms of development: since it
entered the EU, the Slovakian GDP per person rose from
57 % in 2004 to 75 % of the EU average in 2012.
EU funding in Slovakia (2012)
Operating budgetary balance 2012 (% of GNI)
Operating budgetary balance: the dierence between what a country receives from and pays into the EU budget. There are many possible methods of calculating budgetary balances. In its nancial report,
the Commission uses a method based on the same principles as the calculation of the correction of budgetary imbalances granted to the United Kingdom (the UK correction). It is, however, important
to point out that constructing estimates of budgetary balances is merely an accounting exercise of the purely nancial costs and benets that each Member State derives from the Union and it gives no
indication of many of the other benets gained from EU policies such as those relating to the internal market and economic integration, not to mention political stability and security.
8 T H E E U B U D G E T I N M Y C O U N T R Y S L O V A K I A
Regional policy
The largest share of the money that Slovakia receives from
the EU budget goes to its regions (69 %). The EU regional
policy aims to reduce the economic, social and territorial
disparities between Europes regions and countries. It
invests in projects supporting job creation, competitiveness,
economic growth, improved quality of life and sustainable
development. Transport infrastructure and the environment
and are top priorities for Slovakia. Consequently, the EU has
contributed to the modernisation of wastewater treatment
facilities in the Trenn region, and invested in new trains
for the Slovakia Railway Company.
Agriculture and rural development
The second largest area of EU expenditure in Slovakia is
agriculture and rural development (27 %). EU agricultural
policy promotes safe and good food and supports farmers
the income per agricultural worker increased by 83 %
between 2004, when the country joined the EU, and 2012.
Funding also looks after the environment and stimulates
rural economies, for example by helping to renovate some
tourist accommodation in the ilina region.
Did you know that
agriculture is the only
policy funded almost
entirely by the EU?
That is why it represents a large proportion of the
EU budget. It is also less costly for EU countries as
a whole than implementing 28 dierent national
policies. The common agricultural policy has
undergone a major reform, whereby its share of the
EU budget has fallen from 70 % in 1985 to around
40 % today, and is set to continue falling to 33 %
in 2020. A new reform which comes into force in
2014 further strengthens European agricultural
competitiveness, making it more environmentally
friendly and reducing the gap for countries like
Slovakia, which receive lower direct payments than
the EU average. At the same time, Slovakia will still
receive higher funds for rural development.
9 T H E E U B U D G E T I N M Y C O U N T R Y S L O V A K I A
EU projects near you
Infrastructure and transport
NEW MOTORWAY LINKING SLOVAKIA TO THE CZECH
REPUBLIC AND POLAND
The new four lane section of the D3 motorway will stretch
from the village of Hriovsk Podhradie in the ilina
region, to the outskirts of ilina. Once completed, some
696 000 people in the region around the town of ilina are
expected to benet from improved connections and road
safety. The new motorway section is of vital importance
not only for the region, but also for the country as a whole,
as it will improve connections with neighbouring countries.
(EU funding: EUR 67.5 million)
SLOVAKIAN RAILWAYS UPGRADED
The Slovakia Railway Company has replaced or modernised
its trains in the Bratislavsk Kraj, Zpadn Slovensko,
Stredn Slovensko and Vchodn Slovensko regions. The
new equipment, which is more environmentally friendly and
safer, will make it possible to transport more passengers
and will make journeys more comfortable. (EU funding:
EUR 88.5 million)
Agriculture and rural development
COSY COTTAGE GETS A MAKEOVER
Are you looking for a nice holiday rental? An enterprising
local from Zuberec in the Zilina region a popular holiday
location surrounded by mountains and lakes was able
to use EU funds to restore an old cottage, turning it into
modern tourist accommodation. This type of initiative
not only supports the development of rural tourism it
also helps creating employment for local inhabitants. (EU
funding: EUR 675 799)
OVER EUR 1 MILLION IN EU FUNDING FOR ILINA FARMS
The farming company Agrosev has thousands of hectares
of land in the ilina Region, but its outdated technology
and machinery had prevented it from fully exploiting its
potential. EU funds helped the farm to buy new equipment
and signicantly modernise its facilities. Competitiveness
shot up as the quality and eciency of crop and livestock
production improved. (EU funding: EUR 1.3 million)
Slovakian railways upgraded
10 T H E E U B U D G E T I N M Y C O U N T R Y S L O V A K I A
Education and culture
THE ERASMUS PROGRAMME
Some 2 685 Slovak students studied or worked abroad in
201112 thanks to the Erasmus exchange programme,
and the country welcomed 1 355 students from other
European countries. The experience enriches students
lives academically and professionally, but also improves
language and intercultural skills. Young Slovaks received
an average monthly grant of EUR 413 from the European
Commission towards the extra costs of living abroad.
FROM OLD SWIMMING POOL TO EXHIBITION HALL
IN KOICE
Koice is European Capital of Culture in 2013. It is the rst
Slovak city to be awarded the prestigious title. With more
than 200 cultural events organised in 70 locations, it is an
excellent opportunity for the city to attract more tourists
and rethink its development through culture. One of the
key attractions is the Hall of Art, an old swimming-pool,
transformed into an exhibition hall for contemporary art.
Growth and jobs
BRINGING QUALIFIED DOCTORS TO THE ILINA REGION
The rural ilina region has suered from a lack of qualied
medical specialists in dentistry, anaesthesiology and
intensive medicine, clinical oncology, clinical immunology
and allergies. The project increased and supported
the skills of health workers reecting regional needs,
said Katarna Miencov who coordinated the project.
A total of 25 physicians six dentists, four GPs and
15 anaesthetists and intensive-care specialists received
training in their elds. (EU funding: EUR 55 610)
Research and innovation
REVOLUTIONARY NEW MATERIAL
Discovered by scientists at Manchester University, graphene
is set to become the wonder material of the 21st century,
becoming as important as steel or plastics. The Graphene
Project brings together academic and industrial research
groups, including a Slovak research company, to investigate
and exploit the unique properties of the material. (EU
funding: EUR 54 million)
Environment and energy
CLEANER WATER FOR THE REGION OF TRENN
The six agglomerations of Trenn, Nov Mesto, Trenianska
Tepl, Trenianske Teplice, Trenianske Stankovce and
Chocholn Velice will see their wastewater treatment
facilities improved thanks to EU funds. New or upgraded
wastewater treatment plants and sewage systems will
reduce water pollution, leading to safer, healthier water for
inhabitants. (EU funding: EUR 48.3 million)
Did you know?
Slovak writer Jana Beov was one of the
winners of the 2012 European Union Prize for
Literature for her books Caf Hyena and Seeing
People O. Every year, the European Union
Prize for Literature rewards the best new or emerging
authors in the EU. Each winner receives EUR 5 000
and priority funding from the EU culture programme
to get the book translated into other languages.
11 T H E E U B U D G E T I N M Y C O U N T R Y S L O V A K I A
BIOENERGY RECONSTRUCTION OF BOILER ROOMS
Several villages from the Poana region came together to
replace the coal boilers used to heat municipal premises
with boilers using local wood waste. The project slashed
energy bills, reduced pollution and gave the region greater
energy independence. (EU funding: EUR 6.7 million)
A SAFE PATH FOR MIGRATING ANIMALS
Several green bridges enabling wild animals to cross
motorways have been built in the alpine area separating
the Austrian Alps and the Carpathian mountains. The
infrastructures help to protect local biodiversity and prevent
collisions with cars. The area is home to some of Europes
rarest species, such as the brown bear, wolf, lynx and red
deer. (EU funding: EUR 1.5 million)
Cover photo SerrNovik Fotolia-com, page 9 Marin Rajnoha., page 11 bonninturina Fotolia.com
More information on the European Union is available on the Internet (http://europa.eu).
Luxembourg: Publications Oce of the European Union, 2014
ISBN 978-92-79-36698-7
doi:10.2761/23923
European Union, 2014
Reproduction is authorised provided the source is acknowledged.
Printed in Luxembourg
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