9. The Budget

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 the other by ordered budgetary decision-making, and shedding light on the EU’s large-scale budgetary response to the Covid-19 pandemic which marks an important step within the evolution of the EU budget. Finally, the chapter also provides an assessment of how the EU manages a larger budget.