EU BUDGET

5% increase agreed

After the favourable vote in the European Parliament, that of the European Council is awaited

It’s not possible to “freeze” the EU’s long-term budget and insist at the same time that the EU should remain committed to all EU policies, programmes already begun, and new powers assigned to it by the Treaties. That’s the message that emerges from a resolution approved by the European Parliament, meeting in plenary session in its seat in Strasbourg from 6 to 9 June. It was a session also characterized by some current emergencies in Europe, including the e.coli bacteria epidemic, the financial situation in Greece, the continuing tensions in North Africa and the Middle East (Holy Land, Syria), and the preparation of the bilateral EU-Russia summit of 9-10 June.Budget, “realistic” position. The European Parliament has become, on the basis of the Lisbon Treaty, rightful “co-decider” on the EU budget, on an equal footing with the Council, on which sit the representatives of the member states. It was in this role that the EP examined the multiannual financial framework (MFF) or financial perspective for the period 2014-2020. “The Parliament is the first EU institution to define a clear and concrete position” on the MFF. “I’m extremely satisfied. Now we await an equally clear response from the Council”, said Jutta Haug, German MEP, chairperson of the “Special Commission on political challenges and budgetary resources for a sustainable EU after 2013”, commenting on the resolution of the rapporteur Salvador Galliga Polledo after the vote in which it was approved by a large majority on 8 June. By voting in favour of the resolution, the EP is asking that the EU budget “should be increased by 5%, to be able to maintain the commitments already assumed and the projects already begun by the EU – explained the rapporteur himself – and discharge the responsibilities assigned to the Union by the Lisbon Treaty”. The Spanish MEP added: “Ours is a realistic position. In essence we are not asking for any increase in expenditures, but simply for the transfer of some state budgetary items to the EU budget to be able to spend taxpayers’ money more effectively and efficiently”. With this resolution, the EP is therefore insisting on the need for “a far-reaching reform of the funding of the EU budget, by creating its own resources”; a system of real own resources would be “fairer, more transparent, simpler, and equitable” for the budget of Europe, say MEPs.Negotiations begin. “We have to put an end to this bad habit of entering into a political commitment without having enough funding to back it”, said Galliga Polledo during the debate. “Reducing the EU budget is not a viable option for those of us who believe in a competitive Europe”. The Parliament is of the view that budgetary restrictions can compromise increased expenditure on research and innovation, investments on infrastructures and energy networks, foreign policy measures (establishment of the External Action Service) and EU enlargement. The EP, on the other hand, is of the view that it is possible to freeze at current levels funds for regional policy (cohesion and structural funds) and for agriculture. The administration of the EU could also make savings: and in this sense MEPs once again discussed the option of a single seat for the EP, establishing it at Brussels and therefore abandoning that at Strasbourg. Jutta Haug revealed that Parliament and Commission had seen eye to eye on the financial perspectives in recent months. On 29 June the Commission is expected to present two proposals, one on the MFF and the other on the EU’s “own resources”. At this point the negotiations between Council and Parliament will begin.Reform of the CAP, E.coli bacteria. In its current session, the Parliament also discussed various other questions. It gave the go-ahead to the reform of the Directive harmonising levy systems -taxes, tolls etc. – for heavy goods vehicles on Europe’s roads (Eurovignette) and the entry of Romania and Bulgaria into the Schengen area. Marek Sawicki, Polish Minister of Agriculture, also visited Strasbourg. On 1st July his country will assume the rotating presidency of the Union and Sawicki will have to deal with the reform of the contentious issue of CAP (Common Agricultural Policy), as well as food safety, energy security, biomass development, and product quality. And while the EP thinks it necessary to freeze EU funds for this sector at present levels, the Polish minister has indicated other approaches. “Money spent on agriculture, environmental protection and livestock farming are not to the exclusive advantage of farmers”, he explained to SIR Europe. “These are funds that are also aimed at the defence of consumers and their health, as well as the environment”. The current emergency linked to the E.coli epidemic require, he said, “more controls, also for those products that come from third countries”. Sawicki spelt out further points on which to concentrate during the next semester: development of rural areas, support for young farmers, animal welfare, revision of direct payments, “quality package”, and reform of the dairy sector.