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Europe Daily Bulletin No. 10034
Contents Publication in full By article 12 / 44
GENERAL NEWS / (eu) ep/2010 budget

Budgets Committee endorses compromise with Council of Ministers over EU's budget for 2010

Brussels, 04/12/2009 (Agence Europe) - All remaining obstacles have been lifted for the adoption in second reading by the European Parliament in Strasbourg on Tuesday 15 December of the EU's budget for 2010, which includes €300 million in emergency aid for dairy farmers and a change to the Financial Framework to provide the final €2.4 billion for the European Economic Recovery Programme. By adopting the report by László Surján (EPP, Hungary) and Vladimír Maòka (S&D, Slovakia) on the EU's general budget for 2010 on Wednesday 2 December, the European Parliament's budgets committee endorsed the compromise reached on 18 November between the EP delegation and the EU Council of Ministers on controversial areas of next year's budget (see EUROPE 10023).

The agreement includes: - taking €195 million from the flexibility instrument in 2010, of which €120 million will go to the European Economic Recovery Programme and €75 million to close down the Kozloduy nuclear power plant in Bulgaria; - a €1.7 billion increase in the multi-annual financial framework (budget) for 2007-2013, increasing the funds available in the 2009 and 2010 financial years in order to provide the remaining funding in 2010 for the European Economy Recovery Programme; - deciding that the CFSP (Common Freeing and Security Policy) budget shall be €281.5 million in commitment appropriations for 2010; - deciding that the total payment appropriations in the 2010 budget shall be €122,937 million euros or 1.04% of gross national income (GNI). This is 5.7% higher than in the 2009 budget; - providing emergency aid of €300 million for European dairy farmers to help them cope with the milk crisis (this was the amount initially demanded by the EP and it was found by transferring €20 million from the budget for export subsidies for milk to the budget for exceptional measures for dairy farmers).

In terms of commitment appropriations, the 2010 budget will total around €140.9 billion, which enables the EP to increase the Commission's initial suggestions (in its preliminary draft budget) for areas it feels are important, like financial services, smart energy, energy research, lifelong training and entrepreneurship.

For Heading 4 of the EU budget (foreign relations), the EP will re-state its deep concern at the slim margins available because of “chronic under-funding” of a heading which is always being called upon to provide funding to help tackle crises around the world.

For Heading 5 (administrative expenditure), the EP welcomes the agreement reached because it should make it possible to safeguard the running of the EU institutions and also provide €126.5 million for the European Economic Recovery Programme. The two arms of the EU's budget authorities (the Council and the EP) have agreed that the Council will provide €23.5 million to pay for the entry into force of the Lisbon Treaty to pay the additional costs of running the European Council and the Council of Ministers in 2010 (the €23.5 million is covered by Amendment No. 3 to the 2010 budget).

The procedure for setting the EU's budget for 2010 is the last procedure to be covered by the Nice Treaty. The Lisbon Treaty changes the way the budget will be decided upon in future, foreseeing an annual procedure with a single reading in which the EP has the last word. (L.C./transl.fl)

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