The budget of the European Union is an important tool of effective and productive implementation of common policies that are pursued within the Union. The European Commission was authorised with the review of the Union budget for the 2008-2009 period. In this study, after explanation of the basic features of EU budget system, objectives of budget review, the meaning of the review and explanatory information about the works during the process is given. The preparatory phases have been successfully concluded and a wide consensus about the need of structural reforms in the Union budget has been reached. The review process, which had been planned to be completed within 2009, could not be concluded due to political and economic developments in 2009. However, the strong quest in Europe for a change toward a modern budget and the decisiveness will ensure completion of this process.