Brussels, 12/11/2010 (Agence Europe) - As a result of disagreements between member states, the European Union Council of Finance Ministers and the European Parliament (EP) were unable to reach agreement on Thursday 11 November on the overall European Union budget for 2011. A second (and final) meeting of the Conciliation Committee will be held on Monday 15 November to try and strike a compromise on the EU's budget for next year. Agreement is reported to have been reached on the actual figures for the 2011 budget, but not on the political statements required by the EP on longer-term challenges that do not specifically relate to the 2011 budget, like the question of alternative sources of EU funding and the EP's involvement in the procedure to introduce the next multi-annual financial framework. The United Kingdom, Sweden, Denmark and Finland refuse to comply with the EP's demands because they do not want to discuss the future of post-2014 EU expenditure as part of the process of agreeing to the 2011 budget.
After the meeting of the EP-Council of Ministers Conciliation Committee, acting President of the Council, Belgian Budget Minister Melchior Wathelet said that agreement had not yet been reached on all elements of the 2011 budget and the conciliation procedure would continue with a new meeting being held on the final day of the conciliation procedure, 15 November. Wathelet said the intervening time would be needed to try and reach agreement. He admitted that there were great differences between the Council of Ministers' view and that of the EP. He said that most member state delegations had pointed out that they wanted a budget for 2011. Everyone is aware that having a 2011 budget is extremely important for the EU, he added, for various important dossiers like the European diplomatic corps (EEAS), the ITER international nuclear fusion project and to demonstrate that the new budget procedure allows agreement between the EP and the Council.
EU Budget Commissioner Janusz Lewandowski pointed out that the European Commission acts as an intermediary in the conciliation procedure and he had noted varying positions between some of the national delegations. By this, he meant that the breakdown of the talks was not due to disagreement between the EP and the Council of Ministers but because of disagreement between some EU countries that have to unanimously agree on political statements. He argued that what was at stake was not only the figures, but also the EP's ambition to be treated as a genuine partner during the negotiations (that will start in 2011) on the upcoming multi-annual financial framework. He warned that this was a test of the Lisbon Treaty and there would be a price to pay for failing to reach agreement. Wathelet and Lewandowski admit that without an EU budget for 2011, they would have to use the special “provisional twelfth” procedure which would undermine the European diplomatic corps and ITER policies. Wathelet added this would mean the loss of EU credibility in the eyes of the other countries involved in the ITER project.
The Lisbon Treaty sets out how the EP, Council of Ministers and Commission should work together on political statements, which aim to set out in greater detail how the institutions should work more tightly on all areas of budget policy and therefore how Article 312, paragraph 5, of the Lisbon Treaty works in practice (throughout the procedure leading to the adoption of the financial framework, the European Parliament, Council and Commission should take any measure necessary to facilitate adoption), along with Article 324 (regular meetings of the presidents of the European Parliament, Council and Commission should be convened by the Commission under the budget procedures. The presidents should take all necessary measures to promote negotiation and reconciliation of the positions of the institutions that they chair in order to facilitate implementation of the budget procedures). Lewandowski also mentioned Article 311 on EU funding, saying that the Council, under a special legislative procedure, should unanimously and after consultation with the European Parliament adopt a decision laying down measures applicable to the European Union's “own resources” system.
Agreement on the figures. The EP has done its share of the work by agreeing to the Council of Ministers' demands for a limited rise in the budget. The two institutions agree to set payment appropriations for the 2011 budget at a total of €126.5 billion, up 2.9% on the 2010 budget (as demanded by 13 countries at the recent European Council). In addition, agreement was also within reach on the commitment appropriations - the Council's position of August 2010 of a total of €141.7 billion (up 0.2% on 2010), plus an additional €300 million to fund action seen as important by the EP.
The group of stalwarts, headed by the United Kingdom, is refusing to budge. A British government representative, Louise Greening, slammed the attempted wheeling and dealing, adding that it did not make sense to try and settle issues that were not even part of the 2011 budget.
MEPs refuse to climb down. If one is to reach the end of the negotiations, the talks will have to actually start, commented the chair of the EP's budgets committee, Alain Lamassoure (EPP, France). He said he wanted political agreement on the mechanics of working together to prevent new budget crises and ensure sustainable funding of policies for the future like research, innovation and new energy.
Several ministers point out that they voted for a freeze in expenditure at the 2010 level for the 2011 budget, but had made a concession to the European Parliament by agreeing to a 2.9% rise. This is half the rise in budget demanded by the MEPs. (L.C./transl.fl)