EUROPEAN UNION

A positive signal

Agreement reached between Parliament, Council and Commission

“Four billion in fresh money that will go to programmes like Erasmus and support for small and medium businesses”, said JOSEP BORRELL , President of the European Parliament on Wednesday 5 April. During the plenary session of the EP, Borrell announced that agreement on the Financial Prospects 2007/2013 had been reached between European Council, Parliament and Commission. FUNDS FOR COMPETITIVENESS AND TRAINING. After the decision on the Financial Perspectives taken by the heads of state and of government of the 25 at the summit in December, the inter-institutional debate had continued in the first months of 2006, under the Austrian Presidency of the European Council. The additional 4 billion euros (the EP had requested 12, the Council had been willing to grant 1.8 billion) are added to the 862.4 established in December as the available funds for the EU budget. The most substantial part of the fresh funds (2.1 billion) will go to the chapter “Competitiveness for growth and development”; in practice there will be more financial resources for cross-border networks, for programmes dedicated to youth (Erasmus and Leonardo), for research and development and for the sector of innovation. Other funds will be allocated to territorial cohesion (300 million), protection of the environment (100), “Citizenship” (500 million for culture, health and consumer protection) and lastly to external policy (one billion for pre-membership and neighbourhood policy). The Financial Perspectives document has thus been finalised; all it still lacks is the final vote of approval by the European Parliament. “CREATING INTERACTION BETWEEN EU AND STATES”. During the debate held in the EP at Strasbourg, Austrian Chancellor WOLFGANG SCHÜSSEL , President of the Council during the first half of 2006, declared that “a compromise agreement is better than no agreement at all”. Questioned by SIR about the future of integration, also in relation to the go-ahead to the budget, Schüssel explained: “The winter is behind us. We have reached the thaw. The Financial Perspectives have involved us in tough negotiations, but a positive result has now been achieved”. “We need to demonstrate – explained the Chancellor – that Europe is able to make progress with this budget, responding to the hopes of citizens and realizing the many programmes and policies of the EU. Only thus shall we advance in integration. I think however that this budget will be sufficient if we are able at the same time to create interactions between the action of the EU and that of the member states, also by involving, where possible, the private sector. That goes for energy, for agriculture, for infrastructural networks, for culture”. PIECE OF A WIDER PROCESS. The President of the Council made a more general point: “I would say this [agreement on the budget] is an important piece of the process that the EU is engaged on. But we need to consider a wider process. We cannot ignore, among other things, the encouraging results of the spring summit dedicated to the Lisbon Strategy, at which we laid the premises for a single energy market, tackled problems of employment and economic development and approved the project for the European Institute of Technology. We are creating hopes that we must cultivate and turn into realities”. One example? “The new member countries today, in the light of this agreement, can be sure they will get the money they need to put into practice many projects of socio-economic development. And that goes also for Romania and Bulgaria, which will become members of the EU on 1st January 2007”. “EUROPE IS GOING FORWARD”. Favourable comments were also made by the President of the European Commission, JOSÉ MANUEL BARROSO , on the deal reached between Commission, Council and Parliament on the budget, which for the first time involves 25 member states plus the candidate countries. “It’s a new signal that Europe, in spite of its difficulties, is succeeding in going forward. It’s now essential to pass to the implementation of common projects, invest the funds made available and pursue the Lisbon Strategy to revive the economy and employment in the member states”. But in this enlarged Europe, will a budget limited to approximately 1% of gross domestic product be enough to cover all the costs? To this question Barroso gave a considered reply to SIR : “This budget is undoubtedly lower than our initial proposal, but it was indispensable to reach a compromise between the EU institutions and convince all the member states. And it’s that we have now done”. I am convinced – declared the head of the Executive – that it’s a good agreement, also because, in comparison with the previous budget, we can ascertain an increase in expenditure on all chapters. I was a little bit apprehensive about the projects linked to citizenship, those destined to the new member states and those allocated to research and innovation. But on all these fronts we’ve made significant progress”.