Greeks receive most from 2008 EU budget

Greece was the largest net recipient of funds from the EU's 2008 budget according to a European Commission report out Tuesday (22 September), while German contributions hit new historic highs, making it again the largest net donor to the EU pot.

EU budget commissioner Algirdas Semeta said it was important to stop thinking in terms of net balances as he presented the figures, instead pointing to record spending in 2008 in the areas linked to jobs, growth and competitiveness.

However, EU member states always keep an eye on who gets what from the budget, with Greece's net receipts of roughly €6.3 billion far ahead of Poland in second place on €4.4 billion.

Greece's number one spot was helped by its having received the largest slice of cohesion funding from the EU budget, money designed to lift poorer regions up to the average GDP level across the EU.

As well as the cohesion payments of €4.7 billion, which went largely on infrastructure projects, Greek farmers also did well, with agriculture and cohesion monies making up the vast bulk of the EU budget.

Germany on the other hand paid roughly €8.8 billion more into the 2008 budget than it received, its biggest payment in the last 10 years.

Italy and France were the next largest donors to last year's budget, each making a net contribution of around €4 billion.

UK rebate

The UK's net contribution to the EU budget fell from €4 billion in 2007 to less than €1 billion in 2008, primarily due to the country's weaker exchange rate with the euro since the financial crisis began.

London put less into the EU budget last year than in 2007, but also received a larger rebate from Brussels - €6.25 billion compared to the 2007 figure of €5.19 billion.

The British rebate was extracted from other EU member states by the former prime minister Margaret Thatcher in 1984 as a result of British perceptions of excessive Mediterranean agricultural spending.

However, the cheque in the post is due to get smaller from 2010 onwards, say commission officials, part of a deal struck by the country's Labour party in 2005, when it signed away much of the rebate on condition EU farm subsidies would also be reduced.

The European Commission is currently working on plans to reform the bloc's budgetary process in a move that is likely to cause much debate between the region's net donors and recipients.

Speaking on Tuesday however, Mr Semeta said the plans were being held up amid uncertainty as to whether the current commission's mandate will be extended to the end of the year as a result of difficulties in ratifying the Lisbon Treaty.