EU seeks higher spending on economic growth, green policies

European Commission UnionBrussels - The European Commission is seeking to raise spending on economic growth and employment by an annual 3 per cent to a record 60.1 billion euros (92.8 billion dollars) in 2009, according to its preliminary draft budget approved on Tuesday.

Money committed to preserving and maintaining the bloc's natural resources, a spending chapter that includes its expensive farm subsidies programme, is to increase by 3.5 per cent to 57.5 billion euros.

Overall, the European Union executive wants to increase the 2009 budget by 3.1 per cent to 134.4 billion euros, with more money spent on research, energy and preserving the environment.

"We have managed to shift the centre of gravity of spending firmly to long-term economic development and employment without putting other areas at risk," said Dalia Grybauskaite, the EU's financial programming and budget commissioner.

"Investments in research, the environment and energy are growing three times faster than the budget itself, giving real financial shape to our political goals and putting taxpayers' money where Europe's challenges lie," she added.

While the budget's biggest percentage raise, 15 per cent, goes to managing immigration and fighting crime and terrorism, such spending remains about one fifth of what is being devoted to administering the EU's bureaucracy, with spending in this area set to go up by 5 per cent to 7.6 billion euros.

All figures refer to forecasts for "commitment appropriations" - legal pledges to provide financing, provided that certain conditions are fulfilled - rather than "payment appropriations" - actual cash or bank transfers to the beneficiaries.

The budget must now be approved by EU governments and European lawmakers, with its final adoption expected to take place during the European Parliament's plenary in December. (dpa)

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