Classification of Expenditure

Classification of expenditure and the Treaties of the European Union

Description of Classification of expenditure provided by the European Union Commission: This refers to the distinction made between Union expenditure of which the underlying principle and the amount are legally determined by the treaties, secondary legislation, conventions, international treaties or private contracts (“compulsory” expenditure) and expenditure for which the budgetary authority is free to decide the amount as it sees fit (“non-compulsory” expenditure). The question of whether expenditure is to be considered compulsory or non-compulsory generates friction between the two arms of the budgetary authority – the Council and the European Parliament – as Parliament has the final say in determining the amount of expenditure only where it is non-compulsory. The European Constitution currently being ratified provides for ending the distinction between compulsory and non-compulsory expenditure. Unifying expenditure in this way will have two effects: Parliament will be able to influence the entire budget, but it will lose the final say that enables it to impose its will on the Council regarding non-compulsory expenditure.

Resources

See Also

Popular Treaties Topics

• Treaties of the United Nations (UN)
• Types of Treaties
• International Treaties
• Famous Treaties
• Law of Treaties
• Numbered Treaties

Classification of expenditure and the Treaties of the European Union

Description of Classification of expenditure provided by the European Union Commission: This refers to the distinction made between Union expenditure of which the underlying principle and the amount are legally determined by the treaties, secondary legislation, conventions, international treaties or private contracts (“compulsory” expenditure) and expenditure for which the budgetary authority is free to decide the amount as it sees fit (“non-compulsory” expenditure). The question of whether expenditure is to be considered compulsory or non-compulsory generates friction between the two arms of the budgetary authority – the Council and the European Parliament – as Parliament has the final say in determining the amount of expenditure only where it is non-compulsory. The European Constitution currently being ratified provides for ending the distinction between compulsory and non-compulsory expenditure. Unifying expenditure in this way will have two effects: Parliament will be able to influence the entire budget, but it will lose the final say that enables it to impose its will on the Council regarding non-compulsory expenditure.

Resources

See Also

Popular Treaties Topics

• Treaties of the United Nations (UN)
• Types of Treaties
• International Treaties
• Famous Treaties
• Law of Treaties
• Numbered Treaties