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Europe Daily Bulletin No. 10172
Contents Publication in full By article 17 / 32
GENERAL NEWS / (eu) eu/2011 budget

Council looking towards realistic and ambitious budget

Brussels, 01/07/2010 (Agence Europe) - The three Community institutions met on Wednesday 30 June to exchange views on the draft budget for 2011 and on some proposed adjustments to the 2010 budget. The trialogue confirmed the difference in approach between the Council, which wants a rigorous budget with sufficient margins to be able to deal with unforeseen spending, and the Parliament which wants to increase spending on a number of programmes which it considers of great importance. Some MEPs have also called for a review of the multi-annual financial framework, which is felt to be too constricting.

The Belgian Presidency set out the position on the draft 2011 budget that the Ecofin Council is preparing to take on 13 July, a position that is described as “realistic and ambitious”. The reductions proposed by the Council, compared with the Commission proposal (€3.6 million in payment commitments, see EUROPE 10171 for details) are justified by the constraints on national budgets and take account of the credit implementation rate and fund absorption predictions, the Presidency pointed out. With regard to the administrative spending heading, the Council, in line with the “gentleman's agreement”, accepted the increase requested by the Parliament (5.6%) and restricted the increases for the other institutions to some 1.5%. The Council also accepted the posts needed for the European Council as a new institution and the expenditure related to the accession of Croatia (acquis communautaire).

Sidonia Jedrzejewska (EPP, Poland), EP rapporteur on the 2011 budget, stated the Parliament's priorities, which include the EUROPE 2020 strategy, the European External Action Service and youth programmes. She criticised the reductions in credits operated by the Council, in particular in cohesion policy and lifelong learning initiatives. The Parliament presented 159 pilot projects and preparatory actions, and the Commission suggested operating a selection on this list.

Stabilisation mechanism. As part of the discussions on draft amending budget (n° 6) for the 2010 budget, the Council and Parliament agreed to create a new budget line for the European financial stabilisation mechanism (€60 billion) that was decided on at the extraordinary Ecofin Council on 9-10 May 2010. According to the Lisbon Treaty, the EP is not involved in the decision to activate this mechanism. It does, however, have an input in releasing the money.

The EP will decide on its position on the draft 2011 budget at its plenary session, 18-22 October. The conciliation procedure will be opened on 26 October and will run until 25 November to reach a compromise on the 2011 budget. (L.C./transl.rt)

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