How is the EU budget managed?

On December 15, 2005, EU members agreed to fix the common budget to 1.045% of the European GDP. UK Prime Minister Tony Blair accepted to review the British rebate, negotiated by Margaret Thatcher in 1984. French President Jacques Chirac declared that this increase in budget will permit Europe to "finance common policies" such as the Common Agricultural Policy - which represents about 44% of the EU's spending - or the Research and Technological Development Policy. However, France's demand to lower the VAT in catering was refused.

The European Union Budget

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