Brussels, 08/02/2011 (Agence Europe) - European Budget Commissioner Janusz Lewandowski has called on the European institutions, including the European Commission, to reduce their operating costs to fall into line with the austerity measures adopted by member states. He is preparing, in the draft EU budget for 2012 which he will bring forward at the end of April, to propose that the rise in administrative spending for all the EU institutions should be kept “below 1%”. The 2011 budget provides for administrative spending of €8.2 billion, a 3.4% rise on 2010.
“The economic and financial crisis has hit hard the European economy and national public finances. … Several member states have cut and/or are cutting the administrative expenditure in their national budgets”, Lewandowski says in a letter sent on 3 February to the presidents of the various EU institutions. While needing an appropriate level of funding to enable them to accomplish their tasks, “the European institutions cannot ignore the broader economic and budgetary context and must undertake all possible efforts to make the best use of their administrative resources”, he argues.
Although Heading 5 of the EU budget represents a relatively small percentage of the overall budget (5.7%), in the current economic context, administrative spending must come under even closer scrutiny than usual, the commissioner states. His spokesman Patrizio Fiorilli said on Tuesday 8 February that the aim was to send the following message to member states and to Europeans: “We, the EU institutions, do not exist in a bubble where everything is fine, when all around us countries have serious budget problems. Eighty per cent of our funding comes from member states' contributions. We too have to tighten our belts”.
Savings can be made more easily in administrative spending that in operation expenditure (regional policy, direct agricultural aid, etc). “If we try to make too many savings in operational expenditure, it could work against those who receive money from European funds. This would be counter to what is wanted. However, if we make savings in the administrative spending of the institutions, we are making our small contribution without having countries and tax payers bear the brunt”, Fiorilli said.
Lewandowski warned that he would propose limiting the increase in the operating costs of the EU institutions in 2012 to “below 1%”. “Reaching this aim will require significant cuts in expenditure for IT (information technology), meetings, conferences and missions as well as studies and publications” he stated. Just as in 2010 and 2011, the Commission is not planning any new recruitment.
Lewandowski's letter has infuriated the new European External Action Service led by Catherine Ashton, and also the European Parliament, the European Economic and Social Committee and the Committee of the Regions.
The Commission will bring forward its proposals on the next multiannual financial framework (post-2013) at the end of June. Several governments have rallied to the call from UK Prime Minister David Cameron for a freeze to be put on the EU budget until 2020 because of the need for austerity. (L.C./transl.rt)