In 2008, for the first time ever, the largest share of the EU budget - 45% of all EU spending – will go on measures to boost economic growth and greater cohesion in the EU-27. The move to spend more on competitiveness reflects Europe's commitment to prosper in a constantly evolving global economy, while ensuring stable support for farming. Agriculture will continue to receive over 40% of EU cash.

"With the largest share going to competitiveness, the 2008 budget is a concrete result of the Union's determination to put long-term economic development at the heart of the EU spending", said Dalia Grybauskaitė, Commissioner for Financial Programming and Budget, commenting after the European Parliament vote on the EU budget 2008. "This determination was echoed in the constructive way Parliament, Council and Commission reached an agreement. As EU leaders sign the new Treaty in Lisbon today, we can be satisfied that next year's budget will go where Europe's biggest challenges lie".

The adopted budget amounts to EUR 129.1 billion in commitment appropriations, a moderate but steady increase of 2.2% compared to 2007. It corresponds to 1.03% of the EU Gross National Income (GNI). The payment appropriations [2] will amount to EUR 120.3 billion, or an increase of 5.7% in nominal terms. This represents a level of only 0.96% of EU-27 GNI.

Spending on economic development will grow almost three times more than the budget itself in 2008:

The shift in spending on economic progress in 2008 will see over EUR 11 billion for competitiveness. There will be record investment in research which is set to receive EUR 6.1 billion - a 11.0% rise on 2007. Also, investment in energy and transport networks will increase by around 93% with EUR almost 2 billion to co-finance energy and transport projects in the EU, especially cross-border projects such as the Lyon-Turin tunnel. The Union's flagship projects Galileo and the European Institute for Technology (EIT) which will help to foster innovation, technological progress and competitiveness across the whole EU will benefit from EUR 940 million and EUR 2.9 million of EU spending respectively.

Almost half of all cohesion and Structural Funds to go to the EU-12:

Efforts will continue to integrate new Member States further into common EU policies with almost half (47%) of all Cohesion and Structural Funds going to the EU-12 compared to just 23% in 2006. Out of the EUR 46.9 billion intended to foster regional growth and employment, EUR 37 billion (+5.2%) under the 'Convergence' objective will strengthen local development potential in less prosperous regions.

More cash to protect the environment and fight climate change:

Despite the slight decrease in money for market related expenditure and direct payments, (3.4% less than 2007) spending on agriculture will remain stable in 2008, absorbing EUR 40.9 billion. There is however a gradual shift within this policy area with funds being directed towards tackling environmental challenges and fostering development in rural areas. Both of these areas will see a rise in spending of 12% and 4.5% respectively, notably through the LIFE+ environmental protection programme which will increase by 11%.

Raising spending on EU freedom and security and programmes beyond the Europe's borders:

Issues like security, crime, immigration and healthcare remain top concerns for Europeans (Eurobarometer June 2007). Support for these precise areas will grow by 16.7% in 2008, receiving EUR 0.7 billion. For example money for programmes to manage migration flows will rise by 24%. Consumer protection and health will also increase by 14.1%.

In terms of the Europe's role as a global player, the EU's Common Foreign and Security Policy is set for a significant rise of almost 80%, making it easier for the EU to carry out joint actions beyond its borders. This is partly due to the extra support for the European Security Defence Operation on Kosovo. Support for Europe's Neighbourhood policy will enjoy an extra 10.2% of EU money for assistance to the neighbouring countries to east and south. This will provide aid for countries like Palestine to provide better services and meet urgent needs.