The Facts About European Commission Budget

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In 2011, the EU’s budget was € 140 billion, which is actually not enough when compared with the total national budget of the 27 EU member states. So, basically the average EU citizen is only paid 67 cents daily to finance the yearly budget in 2010. As a matter of fact, the EU budget is smaller than the budget intended to the medium-sized member state such as Belgium and/or Austria.

Looking at the EU budget in a more detailed way

Some people think that the commission has the highest budget, but in reality it is not. In fact, the EU budget is always balanced. The national budget continues to increase its spending. Who decides the EU budget? Well, the yearly EU budget is decided by the elected politicians both in the European Council and the European Parliament. The EU Commission proposed a Multiannual Financial Framework, which will be adopted as per the democratic procedures.

 

How The European Commission Works?

eu_commssionThe European Commission has all the rights to propose law for adoption by the EU Council and the European Parliament. The primary role of the commission is to make proposals that will meet its obligations under the EU treaties. Prior to making proposals, the European Commission will first consult its stakeholders. Basically, the stakeholders and the commission in general will assess the potential economic, environmental, and social impact of the proposal.

This would only mean that the commission has the ability to legislate if the said action is more effective at the European level than the national, local, and regional level. If it is for the greater good of all, then it is important to implement the agreed objectives. Once the legislation of the commission is adopted, the commission will then make sure that the legislation will be correctly applied by its member countries.

The greater interest of the commission

The European Commission represents the best interest of the commission as a whole. It encompasses the new legislation of the European Union Council and the European Parliament. Furthermore, it ensures that the laws governing the European Commission will be strictly and correctly implemented by the member countries. The term commission pertains to the 28 commissioners and the institution as a whole.

 

European Commission: To Help Companies Facing Financial Troubles

european_commissionThe European Union is comprised by different countries and each of them is considered rich when it comes to economy and way of life. But it is not always a bed of roses for the member countries. As a matter of fact, about 200,000 companies across the European Union suffers bankruptcy or about to face bankruptcy on a yearly basis. This has led to about 1.7 million people risking their livelihood. There are a lot of things that should be done to make sure that the failing companies will be able to restructure at the earliest possible stage and be able to stay in the business.

 

The need for reform

It is a must to reform the national insolvency as it will be good for all concerned. It will protect and safeguard not only the businesses, but as well as the jobs. Furthermore, it will reduce the risk for investors, encourages cross border investment, and most importantly, it will improve the returns for creditors. How to achieve a consistent and stable system?

To come up with a more consistent system, the European Union recommends to the national governments to come up with the necessary measures that will help businesses to restructure at a very early stage. This is even more effective as compared with pushing the companies towards liquidation; although it is always the case.

What are the possible measures that would be greatly beneficial for the companies facing possible bankruptcy?

  • To help the companies in restricting prior to court proceeding or any insolvency.
  • To provide companies who are facing difficulties a breathing space of up to 4 months to fully adapt to the restricting plans prior to the creditor’s launching enforcement proceedings.
  • To cancel the entrepreneurs debt within three years after the bankruptcy.