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Europe Daily Bulletin No. 10342
Contents Publication in full By article 31 / 44
GENERAL NEWS / (eu) ep/budget

Deadlock over EU Solidarity Fund

Brussels, 22/03/2011 (Agence Europe) - The Council of Ministers and the European Parliament (EP) budgets committee are at loggerheads over the draft amending budget for 2011 which makes provision for payment of €182.4 million to assist six countries hit by flooding last year.

On Monday 21 March, the budgets committee criticised the Council which is proposing to finance the support for the countries affected by creating a “negative reserve” (see EUROPE 10337). Negative reserves cannot exceed a maximum of €200 million a year, meaning that this negative reserve will be almost exhausted after the decision to mobilise €182.4 million for Poland, Slovakia, Hungary, the Czech Republic, Croatia and Romania.

Committee chairman Alain Lamassoure (EPP, France) said that “recourse to this archaic approach (of a negative reserve) does not provide a solution”. Criticising the refusal of the Council to add fresh money, Derek Vaughan (S&D, UK) explicitly pointed the finger of blame at the UK: “The UK blocks this because the prime minister gave his word to stick to the 2.91% increase in payments” in 2011. László Surján (EPP, Hungary) agreed that “fresh money” should be added by an amending budget but said he would rather go along with the proposal that is now on the table “to show solidarity and avoid embarrassment to people who have already waited a year for financial support”.

MEPs hope that the trialogue (Commission, Council and Parliament) meeting scheduled for 30 March will bring a solution to the deadlock so that the funding can be provided soon and a structural approach to dealing with unforeseen events put in place. (L.C./transl.rt)

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