Annual EU Budget procedure

The financial year covers the period from 1 January to 31 December. The Council and the European Parliament adopt the annual EU budget according to the budgetary procedure laid down in art. 314 of the Treaty on the Functioning of the EU (TFEU). The budgetary procedure is carried out in the year preceding that in which the budget is to implemented (see. attached diagram).

The Council position on the draft budget presented by the Commission is prepared and adopted by the Member States in the following Council preparatory bodies:

• On expert level – the Budget Committee of the Council;
• On political level – Committee of Permanent Representatives of EU Member States (COREPER 2) and Economic and Financial Council (ECOFIN/Budget).

In case of divergent positions of the Council and the Parliament, a Conciliation Committee is convened with the task of reaching agreement on a joint text within a period of 21 days following the adoption of the European Parliament’s position. This joint text is then subject to an approval by the Council and the Parliament within 14 days of the agreement.

The experts at the Ministry of Finance are responsible for the preparation of instructions, comments and positions on the draft EU budget for the Budget Committee, COREPER 2 and ECOFIN/Budget meetings. The national positions are coordinated within the Working Group 28 “Financial and budgetary affairs” to the Council for European Affairs.