The Budgetary Procedures

Abstract

Abstract This chapter discusses the budgetary procedures in the European Union. Under Article 314 TFEU, the draft budget is established by the Commission and then subject to one reading only by the Council and the European Parliament—the two branches of the Union's budgetary authority. Since the procedure for the adoption of the budget no longer distinguishes between compulsory and non-compulsory expenditure, the European Parliament thus has the final say—together with the Council—over all expenditure. However, the budget must remain within the limits of the multiannual financial framework. The Commission implements the budget in cooperation with the Member States on its own responsibility and within the limits of the appropriations, having regard to the principles of sound financial management. Other institutions and bodies may also engage in expenditure as authorized under the budget. The implementation of the budget is framed by the Financial Regulation and any other financial rules adopted by the European Parliament and the Council, acting in accordance with the ordinary legislative procedure and after consulting the Court of Auditors, pursuant to Article 322 TFEU.