Brussels, 18/04/2011 (Agence Europe) - On Wednesday 20 April, the European Commission is expected to adopt the draft general budget for the European Union for 2012. In February, European Budget Commissioner Janusz Lewandowski sent a letter to the heads of the EU institutions calling for moderation in the 2012 budget.
Discussion is continuing within the Commission on certain budget headings. With regard to agricultural spending for 2012, the Commission is expected to suggest a 3% increase in credits to the first pillar of the common agricultural policy (CAP) - market spending and direct aid - to some €44.2 billion in commitment appropriations (€1.3 million more than in the 2011 budget). The phasing-in of aid (+€875 million) of the newer member states largely explains this rise. The 10 countries which joined the EU in 2004 will, in 2012, receive 80% of the going rate that applies for the older members and Romania and Bulgaria, which became EU members in 2007, will receive 50%. The Commission proposal is expected to leave a margin of €530 million below the ceiling of the CAP first pillar heading in the financial perspectives. This will mean that there should be no need to make use of the Financial Discipline mechanism. This mechanism adjusts the level of direct aid when forecasts indicate that the sub-ceiling for market spending and direct payments will be exceeded, taking account of a €300 million margin for safety. This mechanism has never been used but a €900 million increase is to be expected for the 2013 budget given the huge rise in direct aid for the newer member states.
The increase for the second pillar of the CAP - rural development - is expected to be a little under 1.5% in 2012, taking it to €14.6 billion in commitment appropriations and €12.7 billion in payment appropriations. The rise is due to rural development programmes operating at cruising speed. (L.C./transl.rt)