The European Parliament has a key role in approving the EU's budget, along with the Council of Ministers.
The budget cannot come into force until it has been signed off by the President of the European Parliament.
In 2009, the European Union has a budget of 116bn euros (£105bn).
Over half of the EU's Budget comes from the member states, who contribute different amounts based on their national income. In 2007/08 the UK contributed £10bn.
The rest comes from areas like EU-wide resources, such as customs duties from non-member states, and agriculture levies.