EU PARLIAMENT

Rejected to the sender

Strasbourg’s Assembly’s thumbs down to Member States’ multiannual budget

The European Parliament vote rejecting the multiannual budget proposal put forward by the European Council of February 8 confirms the political and strategic distancing of the two community institutions that share the budgetary powers of the complex EU structure. But other interests also emerged in the plenary session of March 11-14. Green light to the "two pack". During the week MEPs discussed the economic crisis and the forthcoming summit dedicated to this theme (March 14-15) with the EU Council and Commission; they listened to the speech by Israeli president Shimon Peres, focused on the situation in the Middle East; discussed and took decisions on agricultural policy, consumer protection, future of nuclear plants, integration of migrants, rigged football matches. The European parliament approved with a large majority vote the so-called "two pack" i.e., the new regulations for enhanced surveillance of Eurozone national budgets. The regulatory package, awaiting the green light by the EU Council, includes two texts, drawn up by French MEP Jean-Paul Gauzès and by Portuguese MEP Elisa Ferreira. As compared to the first document, the hemicycle introduced amendments to ensure that the surveillance system is directed towards growth as well as discipline. MEPs claim: "Where countries are asked to make substantial cuts" owing to financial difficulties, "their efforts must not harm investments in education and healthcare". Moreover, "a country’s deficit reduction timetables would have to be applied more flexibly in exceptional circumstances or in severe economic downturns".MEPs failed to approve the MFF. On March 13, during the debate on the Multiannual Financial Framework MEPs expressed their opposition to a financial framework that "might lead the EU budget into a structural deficit", and rejected the cuts proposed by Member States in the areas of growth, innovation and employment. The EP clearly endorsed funding for investments, education and social cohesion, budgetary flexibility. MEPs approved a proposal for short-term revision of the MFF, as well as a system of own resources to fund the EU budget, separate from national transfers. MEPs rejected February’s European Council MFF proposal (960 billion for "commitments", 908 for the "payments", i.e. the resources made available in a 7-year timeframe) and drew up the guidelines of the negotiations with the Irish presidency-in-office. The resolution – drawn up the group leaders of the EPP, S&D, ALDE, Greens and GUE/NGL – was adopted by 506 votes to 161, with 23 abstentions. Conservatives and "eurosceptics" call for a gradual reduction of the EU budget and of common policies. However, the EP requested sufficient funding for all community policies (territorial and social cohesion, agriculture, infrastructures, research, Erasmus, energy, security, international cooperation…). It equally requires a "sufficiently flexible MFF in order to ensure that available funding is used in an optimal manner" with a "short term" revision. Necessary means. "The adoption by the European Parliament of its resolution on the next financial programming period" (2014-2020) "is a key step forward", said EU Commissioner for Budget and Financial Programming Janusz Lewandowski following the adoption of the resolution by the European Parliament. "Now, the negotiations should be launched swiftly. We owe this to 500 million Europeans, to our businesses, towns and regions, scientists, students, NGOs and all those who benefit from EU funds". The EU Commission, Lewandowski pointed out, "will continue to act as facilitator" helping to broker an overall agreement between the European Parliament and the Council. "The 2014-2020 Multiannual Financial Framework must be ready in time, to provide the means to help Europe invest its way out of the crisis, including through simpler rules of access to EU funds for beneficiaries as well as a more flexible EU budget able to quickly react to new developments". Pooling our resources together through a more focused EU budget for investment in growth and jobs will deliver bigger impacts at a time when Europe needs it most".