European Union Policies, Budget and Structural Funds Explained
Structural and Cohesion Funds
The Structural and Cohesion Funds were established to reduce regional imbalances and wealth disparities between European Union member states. These funds serve a dual purpose:
- Solidarity: Favoring citizens in less economically and socially developed regions.
- Cohesion: Minimizing the gap between the wealthiest and poorest regions.
Types of Structural Funds
- European Regional Development Fund (ERDF)
- European Social Fund (ESF)
- European Agricultural Guidance and Guarantee Fund
- Financial Instrument for Fisheries Guidance (FIFG)
Expansion of EU Powers
Since its inception, the European Union has expanded its authority, leading to a partial cession of sovereignty by member states to strengthen the Union. Originally focused on specific economic issues—such as coal and steel production, customs suppression, and the single currency—cooperation now extends to security, justice, immigration, civil rights, and education.
The European Union Budget
The European Union manages its political projects through an annual budget proposed by the Council, approved by the Parliament, and managed by the Commission.
Revenue Sources
- Own Resources: Customs duties and VAT collected in member countries.
- Direct Contributions: Payments from countries based on their relative wealth.
Primary Expenditures
- Common Agricultural Policy (CAP)
- Structural and Cohesion Funds
The ERASMUS Program
The ERASMUS program is a cornerstone of the European Union's educational policy, designed to promote the mobility of students and academics across EU member states.
Key European Union Policies
The EU utilizes its budget to implement policies that affect all member states, including:
- Common Agricultural Policy: Subsidizing the agricultural sector to maintain farming activities that might otherwise be unprofitable.
- Fisheries Policy: Ensuring the sustainable utilization of fishery resources by setting maximum catch limits divided among member countries.
- Environmental Policy: Aimed at conserving and improving the environment.
- Common Commercial Policy: Establishing common customs tariffs for imports and setting quotas on specific products.
- Regional Policy: Improving development levels in the poorest regions through targeted investments.
- Research and Technological Development: Focusing on R&D initiatives.
- Trans-European Networks: Improving transport, energy, and telecommunications infrastructure.
- Social Policy: Financing training courses for both the unemployed and the workforce.
- Foreign and Security Policy: Achieving common action in international relations, including joint positions on security and counter-terrorism.