CAST Project Management FG IV Practice Test 2026 - Free Project Management Practice Questions and Study Guide

The correct answer highlights the collaborative process involved in the adoption of the EU budget, which is a crucial aspect of the European Union's financial governance. The European Commission, the European Parliament, and the Council of the European Union work together to prepare, negotiate, and adopt the budget.

The European Commission drafts the budget proposal and submits it to the Parliament and the Council, which then engage in a negotiation process. The Parliament and the Council have the power to amend and ultimately approve or reject this budget. The involvement of these three entities underscores the democratic nature of the EU's budgetary process, ensuring that both the executive (the Commission) and the representatives of the member states (the Council) and citizens (the Parliament) participate in crucial fiscal decisions.

In contrast, while the Parliament and the Council are indeed key players in the budgetary process, the inclusion of the Commission is essential, as it's responsible for the initial proposal, thereby making the comprehensive involvement of all three critical to the process. The Council and the European Ombudsman do not have a role in budgetary adoption, as the Ombudsman primarily addresses issues related to EU institutions and ensures transparency and accountability, but does not participate in budget formulation.