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Europe Daily Bulletin No. 10395
Contents Publication in full By article 24 / 41
GENERAL NEWS / (ae) ep/budget

EP calls for tax on financial transactions

Brussels, 09/06/2011 (Agence Europe) - In addition to recommending a 5% increase in the European budget over the 2014-2020 period and maintaining farm subsidies and the allocation of structural funds at least at the current level (see EUROPE 10394), the European Parliament recommended on Wednesday 8 June that further income should be raised to ease the pressure on national budgets.

Adopting the report by Salvador Garriga Polledo (EPP, Spain) on the work of the special committee on budgetary challenges after 2013, the EP considers that a European Union financial transactions tax (FTT) “could constitute a substantial contribution, by the financial sector, to the economic and social cost of the crisis, and to public finance sustainability”. It is of the opinion that an FTT could also contribute partially to the financing of the EU budget, as well as lowering member states' GNI (Gross National Income) contributions. Furthermore, the EP considers the Union should also act as an “exemplar” in relation to the movement of funds towards fiscal havens.

Single seat. Ashley Fox (ECR, UK) was quick to point out “the significant savings that could be made if the European Parliament were to have a single seat”. He calls for an end to be put to the monthly relocation between Brussels and Strasbourg, which costs around €200 million and emits around 20,000 tonnes of CO2. The EPP Group had submitted an amendment in order to remove this paragraph on the single seat, but the amendment was rejected by 353 votes to 282 and 38 abstentions.

Cohesion policy. In addition to requesting the creation of an intermediary category from 2014-2020 for regions whose Gross Domestic Product (GDP) per capita is between 75% and 90% of the Union's GDP, the Parliament considers that mechanisms ensuring the monitoring and evaluation of cohesion policy implementation must be improved. It emphasises that the partnership principle should play a crucial role in this improvement, believing that the elaboration of concrete and measurable outcome indicators should be regarded as a prerequisite for measuring the actual progress. It welcomes the Commission proposals for an ex-ante, on-going and impact evaluation of each operational programme. The EP sounds a note of caution against subjecting cohesion funds to sanctions in the framework of macroeconomic conditionality linked to the Stability and Growth Pact “as this would go against the very objectives that cohesion policy is set to pursue, namely the reduction of regional disparities”.

Agriculture. The EP underlines the fact that “given the wide array of tasks and objectives that the CAP is called to respond to, the amounts allocated to the CAP in the budget year 2013 should be at least maintained during the next financial programming period”.

Economic governance. The EP notes that the European Stability Mechanism (ESM) planned for the post-2013 period has been organised in a purely intergovernmental manner. It states its concern at this development (given the lack of democratic control), and recalls that the EU budget provides guarantees for loans to member states under the European Financial Stabilisation Mechanism, as well as the mid-term financial assistance for non-euro area member states' balances of payments facility.

Research. The EP believes that a concerted public and private effort is needed at European and national levels to reach the EUROPE 2020 target of 3% of (GDP) expenditure on R&D, to achieve the creation of the European Research Area and of an “Innovation Union”. It calls on the EU institutions and the member states to agree without further delay on a specific roadmap for achieving this target, and points to the massive economic commitment that this target would entail, amounting to around €130 billion annually for both the EU and national budgets and twice as much for the private sector.

Energy. The EP underlines the need to step up financing for research, technological development and demonstration in the energy sector in order to develop sustainable energy that is accessible to all.

Maritime policy. The EP calls on the Union to boost its efforts to support an ambitious maritime policy (being keen on “sufficient” financial means being allocated to this policy).

JHA. The EP stresses the need for an integrated approach towards pressing immigration, asylum questions as well as towards the management of the external borders of the Union, with sufficient funding and support tools to handle emergency situations. Such tools should be made available in a spirit of respect for human rights and solidarity amongst all member states. (L.C./transl.jl)

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