Episode 9: The EU's money

Play from 0:00 A semester abroad in Spain, a new cycle path in the village, money for a farm: often there's a small sign with the EU flag. But where does the EU actually get its money? And who decides what it's spent on?

Play from 0:15 For 2026, the EU has planned around 193 billion euros. Sounds like a lot. But per person in the EU, that's only about 430 euros a year, just over one euro a day. And it's around one percent of the EU's economic output. Most of the money for schools, roads and pensions is spent by the countries themselves.

Play from 0:38 Most of the money is paid in by the member states, depending on how strong their economy is. On top of that comes a small share of VAT, customs duties on goods from outside the EU and, since 2021, a levy on plastic packaging that isn't recycled. By the way, the EU can't simply raise its own taxes. That would need the agreement of all countries.

Play from 1:02 And what is it spent on? Around a third each goes to poorer regions, so they can catch up, and to farming. The rest is spread out: research, Erasmus+, border protection, help for other countries and running the EU itself. Erasmus+, for example, has just over 26 billion euros until 2027. Since 1987, more than 13 million people have used it to study or work abroad.

Play from 1:29 Some countries pay in more than they directly get back, Germany for example. Poorer regions get more. That's intentional: when all regions catch up, everyone benefits from the single market, including the countries that pay in more.

Play from 1:44 Who decides on the money? First, there's a plan for seven years, the multiannual financial framework. The countries in the Council adopt it unanimously, and Parliament has to agree. Within this framework, Parliament and the Council adopt the budget together every year. Parliament can even reject it.

Play from 2:02 And at the end? The European Court of Auditors in Luxembourg checks whether the money was spent properly. And every year, Parliament decides whether to sign off on the Commission's spending. That's called discharge.

Play from 2:15 Remember: the EU budget is small compared to the countries' budgets, but it makes a big difference. And Parliament and the Council decide on the money together.

Play from 2:25 Now you know the EU. One question remains, the most important one: what does it have to do with you? More than you think. We'll show you in the final episode.