Brussels, 25/11/2010 (Agence Europe) - As we expected (see EUROPE 10263), on Thursday 25 November, Coreper (the committee of permanent member states' representatives to the EU) reached agreement on the continuation of flexibility to allow adjustments to the multiannual financial framework, which is one of the conditions demanded by the European Parliament for agreement on the whole of the EU's budget for 2011. Coreper also reached a compromise on funding details for the ITER international, experimental, thermonuclear programme.
As required, the EU countries now unanimously agree to keep flexibility in the future for the EU budget. It is planned to introduce a contingency margin of 0.03% of EU GNI (€3.4bn) in the new regulation laying down the multiannual financial framework, which could be mobilised after approval by the European Parliament and on a qualified majority vote at the Council. Compared with the existing flexibility set-up, there would be tighter mobilisation criteria - it would no longer be possible to overshoot the upper limit of the multiannual financial framework because the contingency margin would only apply to margins available under the various budget headings; and when suggesting use of the contingency margin, the European Commission will have to suggest how funding should be redeployed.
The extra ITER expenditure in 2012 and 2013 will be revised down from €1.4bn to €1.3bn (€100 million less). To achieve the €1.3bn, €460 million will be made available by redeploying cash from the Seventh Framework Programme of R&D under Sub-heading 1a (Growth for Competitiveness and Jobs) in 2012 and 2013. The remaining €840 million will be achieved by revising the multiannual financial framework (transferring cash available mainly under farm spending in Heading 2).
New draft budget to be unveiled by the Commission on 1 December. On 1 December, the European Commission will unveil a new draft EU budget for 2011 reflecting the outcome of the 15 November conciliation meeting, where some progress was made. In terms of payments, the Commission is expected to suggest a 2.91% rise in the total 2011 budget to €126.5bn, as agreed between the Council and EP. On commitment appropriations, the Commission seems willing to make a small concession to the EP by using the Flexibility Instrument (not the same as the above-mentioned budget facility) to overshoot by a total of around €100 million the upper limits of two headings (1a Competitiveness and 4 Foreign Action). The Commission is also expected to unveil two draft political statements (one on the multiannual Financial Framework and the other on the EU's 'own resources' system). A meeting of the Commission, Council and EP on the budget will take place on 7 December, alongside the ECOFIN Council meeting. (L.C./transl.fl)