The European Commission adopted a 2008 budget proposal for the European Union on Wednesday, with growth and employment taking the biggest share for the first time.

The European Union's executive arm said it wanted the total commitment appropriations, which member states pledge to provide and cover future spending in multi-annual programs and projects, to be increased by two percent compared with 2007, standing at 129. 2 billion euros (one euro now equals about 1.36 U.S. dollars). It is at the level of 1.03 percent of EU Gross National Income (GNI).

Payment appropriations, which refer to actual cash or bank transfers made within the year, are set at 121.6 billion euros, a 5.3 percent increase against this year and accounting for 0.97 percent of GNI.

As to different headings, spending on growth and employment policies will increase by 4.2 percent to 57.2 billion, occupying 44.2 percent of the total budget in commitment appropriations. In particular, research expenditure will increase by some 11 percent, investments in trans-European energy and transport networks by 14 percent, and lifelong learning programs by 9 percent.

It is for the first time that the EU will spend more on growth and employment than on agriculture, which was traditionally a key part of the EU budget. Spending for the protection and management of natural resources, including the Common Agricultural policy, stands at 43.6 percent of the total budget.

"For the first time, spending directly related to growth and jobs take the biggest share of the EU budget. This proves that the Commission is steady in its ambition of refocusing the budget on the global challenges facing Europe as a whole," said Dalia Grybauskaite, European Commissioner for Financial Programming and Budget.

Another 7.3 billion euros, which is 5.6 percent of the budget, are earmarked for administration costs. Administrative costs for the Commission are set to increase less than the rest of the budget, at 4.1 percent, including new posts necessary for recent enlargements.

In order to help sustain the EU's influence on the global stage, the Commission's proposal set apart 6.9 billion euros to fund external relation actions, a 1.5 percent increase compared to 2007.

Spending on freedom, security and justice policies increases by a strong 10.8 percent to reach 691 million euros. The most significant increase concerns the management of migration flows, at 24 percent, reaching more than 390 million euros.

The budget proposal has to be approved by the European Parliament and member states. The final adoption is expected to be in December.

Source: Xinhua