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Europe Daily Bulletin No. 10199
GENERAL NEWS / (eu) eu/budget 2011

Council adopts its position on draft budget

Brussels, 24/08/2010 (Agence Europe) - As announced (details in EUROPE 10182), on 12 August the Council of Ministers of the EU adopted its position on the draft budget of the EU for the financial year 2011: it has approved “targeted” reductions from the proposal of the European Commission, “whilst guaranteeing adequate funding for the priorities of the European Union, particularly economic recovery”, the Council explained in a press release. The Austrian, Czech, Danish, Finnish, Dutch, Swedish and UK delegations voted against this position. Some of them feel that extra cuts are needed.

The Council's position takes account of the “current budgetary restraints of the member states” but leaves “sufficient margin” in the various headings of the financial framework to be able to face unexpected budgetary requirements. In the Council's position, the 2011 budget of the EU is €141.77 billion in commitment appropriations, which leaves a margin of €2.02 billion in the overall envelope of the financial framework, and €126.52 billion in payment appropriations, which corresponds to 1.02% of the gross national income (GNI) of the EU. The reductions from the amounts proposed in the Commission's draft budget (-€787.83 million for the commitments and -€3.609 billion for the payments) were decided upon by the Council in the light of “a thorough examination of budget implementation in past years and in the current year, by taking into account the 2010 budget forecast and realistic absorption capacities”, the Council press release explains.

Compared to the 2010 budget, the Council's position for the 2011 budget provides for a limited and controlled increase of funds: +0.22% for the commitment appropriations and +2.91% for the payment appropriations. Additionally, the Council has taken note of a unilateral declaration by Germany concerning the “Food aid for the most deprived persons in the European Union” programme. Germany declares that this programme (which is the subject of proceedings before the Court of First Instance) “must be brought into line with Community law”. Germany argues that market purchases should not be made under the programme. (L.C./transl.fl)

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