Abstract

This chapter examines the European Union’s budgetary procedures with an eye towards elucidating the characteristics of budgetary politics and policy-making. Where EU money comes from, how it is spent, and the processes by which it is distributed are the subjects of intense political bargaining. Budgets matter politically, because money represents the commitment of resources to the provision of public goods and involves political choices across sectors and regions. The chapter first provides a thumbnail sketch of the EU budget before looking at the major players involved in the budgetary process. It then considers budgetary politics over time, focusing on two phases, one dominated by budgetary battles and other by ordered budgetary decision-making. It also discusses the relevant provisions of the Treaty of Lisbon with respect to budgetary procedures and concludes with an assessment of the budget review and how the EU manages a larger budget.