ABSTRACT
The budget of the European Union (EU) is framed by the Union's unique system of governance "without government," founded on the principle of representation of interests, and organised around a decision-making triangle made up of the European Parliament, of the Council of Ministers and of the European Commission. EU revenue arrangements are highly influenced by the concept of "net budgetary balances," to mean the difference between member states' contributions to the EU budget and the payments they expect to receive from the various EU policies. The essence of the EU budget is predetermined by a seven-year Multi-Annual Financial Framework, adopted unanimously by the Council following a Commission's proposal. Consent by the European Parliament is required. The EU budget is an "expenditure budget," the amount of revenue is established in relation to the expenditure. The EU budget is mainly financed through national contributions based on member states' shares in the EU Gross National Income and on the Value Added Tax.
