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Europe Daily Bulletin No. 10129
Contents Publication in full By article 29 / 45
GENERAL NEWS / (eu) eu/budget

Differences over financial framework flexibility clause

Brussels, 29/04/2010 (Agence Europe) - The EU Council of Ministers has made progress on discussions on the package of proposals on implementing new budgetary rules brought in by the Lisbon Treaty (regulation setting the multiannual financial framework, inter-institutional agreement and financial agreement). COREPER, the committee of member states' permanent representatives to the EU noted, on Wednesday 28 April that the main issue on which EU member states are not agreed at this point relates to the possibility of reviewing the multi-annual financial framework by qualified majority if the review does not exceed 0.03% of gross national income (GNI), in order to provide flexibility to facilitate certain operations.

Some delegations were against the Commission proposal to retain the possibility of reviewing the financial framework by qualified majority up to the 0.03% limit, for legal reasons. These countries argue that any revision of the multi-annual financial framework must be done by unanimous decision. This argument is attractive to the so-called net contributors to the EU budget as it reduces the chances of additional spending.

Other delegations, however, stress the importance of retaining the possibility of revising the financial framework by qualified majority decision, within certain limits (some countries advocate a lower ceiling than 0.03%, which equates to some €3.5 billion). The EP, finally, is very keen on any instruments which might increase the Community budget.

The Spanish Presidency of the EU Council of Ministers has indicated that it would make contact with MEPs to discuss this and other matters related to the EU budget which are currently on the table.

COREPER has yet to adopt a position on draft amending budget N° 1/1010 which relates to the rise in expenditure of some institutions resulting from the coming into force of the Lisbon Treaty. The EP is calling for an additional €9.4 million in human and budgetary resources. The Council, not knowing what the EP will ask of it under the 2008 budget discharge procedure, would seem less than willing to sign a blank cheque. The EP is heading towards adjournment of granting discharge in respect of implementation of the Council budget in 2008. The EP will vote on the discharge in Brussels on Wednesday 5 May. The Spanish Presidency is prepared to open discussions, on behalf of the Council, with the EP on revising the 1970 “gentleman's agreement” (see EUROPE 10123). Under this agreement, the Parliament and the Council do not become involved in the other's administrative budgets. (L.C./transl.rt)

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