Tug of war on the budget

The stakes are too high to put up with a watered-down deal. It’s the stand of most MEPs in view of the European Council of February 8, which launched a 2014-2020 Multiannual Financial Framework Proposal. The Council proposed commitments for 960 billion, with 908 euro for actual payments – far less than the sums requested by the Commission, with significant cuts compared to the previous proposal. But the European Parliament, the EU’s budgetary authority with the Council rejected the deal. The clash came to the fore during the EP parliamentary audition of February 18 in Brussels.A point of encounter. “I reminded my colleagues that all that European Council decided was a mandate for the ordinary Council and its Presidency to take forward in discussion with the Parliament. We must act soon, so that the budget may be in operation as of January 2014”. During the audition European Council President, Herman Van Rompuy, defended the compromise reached by Heads of Government or State on the MFF, given the budgetary difficulties currently experienced by all Member States. “Some spending items increased – Rompuy underlined – such as research, innovation, Erasmus”. “Not all investment proposals of the Commission were taken on board”, the President immediately admitted, and underlined the “progress” made for cohesion, agricultural policy, security and citizenship spending. Van Rompuy highlighted a new initiative of €6bn in seven years in response to youth unemployment. Finally, the Belgian politician called upon MEPs to reach a deal with the Council so as to prevent projects from reaching a standstill in the coming years. Unmet expectations. EP vice-president, Gianni Pittella, who chaired the audition, voiced the perplexities of the “Europeanist” parliamentary majority (eurosceptics and anti-Europeanist MEPs are in favor of cutting EU spending). “The compromise reached at the last European summit is not up to the challenges that lie ahead. Parliament asked – and will keep asking – for a modern and ambitious EU budget to help boost the recovery and put the economic and financial crisis behind us”. The vice-president added to Van Rompuy: “We’re very distant from expectations and it’s impossible to face in a credible and serious way the ongoing difficulties by supporting a budget that for the first time in European history registers a decrease compared to previous years. It’s a step behind with no logical explanation; the cuts you propose would negatively impact the lives of all Europeans. Thus the Parliament cannot accept this deal”. “At a time when the first weak signs of recovery finally appear after years marked by a harsh financial and economic crisis it would be reasonable to invest in Europe” as “the quality of EU policies for the next decade – research, learning, foreign affairs and development policies – are at stake. Such an agreements is not in the citizens”.Improving the MFF. The President of the European Commission, José Manuel Barroso, said the decisions unanimously taken by EU27 Heads of Government and State were “disappointing”. “The end result was an overall level for the MFF that was considerably lower than what we had proposed. Also some key items of the budget registered consistent contractions”. “A different outcome was hope for, given the challenge of promoting growth and jobs across the EU”. Barroso recognized the progress made as relates to the Connecting Europe program, energy infrastructure, transport” as well as other items of investment such as research and innovation (Horizon 2020 program), “Erasmus for all”, and “notably with the new Youth Employment Initiative”. Barroso said he hopes the coming negotiations may improve the deal reached so far. MFF critical voices include that of EPP group leader Joseph Daul: “There was nothing European about he summit – he said -, it seemed carpet seller budget deal. Citizens need the added value provided by Europe, offering the answers that Member States alone are unable to give”. ECB Mario Draghi, speaking at the EP on the same day, delved into the need “to continue along the path of recovery”, whilst seeking to “mitigate the effects of austerity measures”. Draghi appeared cautious on the possible signs of recovery in the real economy. The EU Commission will make known its economic forecasts on February 22.