Until late 1970s: direct link CAP (70%) and budget (De Gaulle Budget)

1970 Luxembourg Treaty: distinction (compulsory expenditure) CE/NCE (power to EP certain areas only)
1975 Brussels Treaty: budgetary power to EP whole budget, right of last word for NCE
1980, 85, 86, 88: budget rejections, provisional twelfths

EU Budgetary History
1988 Delors Package + new Own resources decision (GNI): first MFF in an Interinstitutional Agreement (IIA)
2013: current Multiannual Financial Framework negotiated
Chart Slide 6

Sound financial management

Unity and accuracy
Annuality

expenditure has to be cost-efficient

European Development fund

Carry-overs

Equilibrium
Unit of account
Basic Principles
Universality

EU Budget-1

Assigned revenue

Specification
Specification

Transfers/ Reserves

Eg. Norway, if they give us extra money they can decide in what field it must be spent

Transparency
Limited by Treaty provisions
Created in 84, updated in 88

Budget Principals
(financial regulation)
Limited by revenue ceiling in
Own Resources Decision:

To change this, it requires unanimity and MS ratification

Payments:

1,23% EU GNI (congregated national GNI)

Commitments:

1,29% EU GNI

Limited by a multiannual financial framework since 1988 (decided by unanimity)

Overarching Principles

Limited by amounts in the annual budget

Need to be under the MFF and the ORD

If theres a real need for more budget u can amend the budget (normally increasing the commitments): require more money, or take a bit from every field
Notes from class

If theres a crisis, u can add more budget as long as the MFF is not passed. There is not an emergency cash stock, it is this mechanism of flexibility
If the need is so great that the FMM must be passed, it would have to be amended