A historic turning point

“The proposed budget represents an historical turning point for the EU: expenditures linked to development and employment represent the main item of the EU budget” and, for the first time in 50 years, “exceed those for agriculture and natural resources”, commented DALIA GRYBAUSKAITÉ , Commissioner for Financial Planning, in presenting the 2008 draft budget adopted by the Executive on 2 May. The budgetary process thus begins: in the next few months it will involve Council and Parliament and should be concluded – bar surprises – in December.HISTORIC OVERTAKING. The Lithuanian Commissioner emphasizes some innovations in the structure of the EU budget and hence of EU policies, “in confirmation of the fact that the Executive intends to re-focus the budget on the global challenges with which Europe is faced”. According to the draft budget, expenditure commitments for 2008 amount to 129.2 billion euros (1.03% of EU gross domestic product); overall the budget rises by 2% over the current year. Expenditures for sustainable development, employment and cohesion between the Regions, necessary also in pursuit of the Lisbon Strategy, amount to 57 billion (44.2% of the budget), against 55 billion for agriculture, animal husbandry and the protection of the natural heritage (43.6%). MORE FUNDS FOR RESEARCH, BUT LITTLE FOR CITIZENSHIP. The figures show that planned expenditures for the primary sector and the environment remain unchanged between this year and the next, while allocations for ongoing training (+9%), research (+11%), trans-European networks and energy (14%) will increase in percentages. Expenditures for the control of immigration will also increase (390 million euros more in 2008, a figure still far from meeting real needs); so too will funds to reinforce external actions (+6.9 billion). But to the items “Citizenship, freedom and security” and “World role of the EU” no more than respectively 1 and 5,4% of the total will be allocated. Administrative and personnel expenditures will rise to 5.7%: “they shouldn’t undergo any further increased in spite of the recent enlargements”. AN OVERALL REFORM. The Commission re-affirms, through the mouthpiece of Grybauskaité, its commitment, made in December 2005 at the end of the “marathon” for the Financial Perspectives 2007-2013, to an “overall reform of the budget”: by the end of next year the Barroso Executive ought to adopt a general reform of the budget, redefining the percentages assigned to the individual items, beginning with agriculture, cohesion funds, and the “rebate” granted to Great Britain, a privilege obtained in her time by the then premier Margaret Thatcher.STAGNANT BUDGET? “The positive presentation of the preliminary draft budget by Commissioner Gribauskaité only half convinces me”, comments GIANNI PITTELLA, member of the budgetary committee of the European Parliament, and former rapporteur for the last budget. “A budget that overall increases by only 2% in its commitments is a stagnant budget, because it increases less than the estimated rate of inflation in Europe” (2,1%). The judgement of the Italian MEP however is not wholly negative: “It is clear that the concentration of resources on some priorities, such as programmes like Galileo, trans-European networks and research, can be supported. It’s true, however, that these increases involve a concurrent reduction of resources for other programmes”. Parliament and Council represent the budgetary organ in the institutional architecture of the EU, and in the months ahead they will be called to reach an agreement on the basis of the Commission’s draft proposal. “It’s clear – points out Pittella – that the obligations imposed by the Financial Perspectives 2007-2013 will inexorably be submitted anew on each new budgetary procedure”.ACTIVITIES FUNDED. An immediate comparison of the present budget with the figures proposed by the Commission shows that the allocations for agriculture and the environment in the 2007 budget are approximately 45% of the total, against 43% for growth and employment. Administrative costs and “EU in the world” have at their disposal roughly 5%, while funds for citizenship remain unchanged at the usual 1%. The items funded by the budget include (just to cite one or two examples): the European Social Fund (training and human resources); funds for regional development; road and rail infrastructures; the Erasmus programme for students; scientific experiments, training and mobility of researchers; the promotion of culture and the media; the protection of biodiversity; protection of consumers and the health of citizens; support for small and medium-sized businesses; and humanitarian aid for poor countries.