Brussels, 06/07/2011 (Agence Europe) - On the evening of 29 June, the European Parliament was the first to be informed of the proposals of the European Commission on the multi-annual financial framework (EUROPE 10409), which President José Manuel Barroso presented to the plenary session of Tuesday 5 July. The Commission, which is not always indulged by the Parliament, on this occasion received more praise than criticism, with even those who were discontented being nonetheless impressed for diametrically opposed reasons: in one corner, those wanting a more substantial budget, in the other, those in favour of budget freezing and “less Europe”.
This proposal on the multi-annual financial framework (2014-2020), said Barroso, is an ambitious and innovative budget, because it provides “reasonable funding for the sectors of the future”, particularly research and education. It will not cost the taxpayers any more than the current budget, but will “make a huge difference”, said the president of the Commission, by focusing expenditure on the priority sectors, on growth and on employment. “We must both avoid dispersion and develop a strong culture of European responsibility”, Barroso added. He invited the analysts not to look at the budget in a conventional or bureaucratic way, but to “refocus” the policies by playing on the synergies. This is what will have to be done for the common agricultural policy, which so often comes in for criticism, but which remains the most important European policy. But it also has its contribution to make, particularly as regards environmental protection. In order to give a shot in the arm to sustainable growth, Barroso added, we are proposing that the cohesion policy (€376 billion) should be more closely involved with the EUROPE 2020 strategy.
Barroso also argued in favour of a solidarity budget. The Commission wants to do more to help the poorest, who need more substantial food aid. It is proposing the creation of a new Connecting Europe Facility, to fund integration projects in the transport, energy and information technology sectors. “This will make it possible both to improve access to the single market and to put an end to the isolation of certain economically isolated areas.” The Commission is proposing to give this new fund a budget envelope of €40 billion, to be topped up by €10 billion from the cohesion fund, and “we are also planning to use European project bonds”. This solidarity is also external: the Union must respect its commitments as regards development cooperation and the millennium development goals. Barroso spoke of a responsible and realistic budget. The Commission is not proposing an increase in administrative expenditure and is planning changes to streamline efficiency. President Barroso gave his warmest support to European civil servants: “we have one of the best administrations in the world”, he said, “and we must allow it to keep its independence”. Realism also prompts the Commission to look into funds to be put in reserve for unforeseen expenditure, but “also for certain major projects which have suffered from budget cuts”, such as ITER. Last but not least, the proposals on own resources, which many of the members of the European Parliament have been calling for for years, if not decades. Another gift to the Parliament is the proposal on a financial transactions tax and changes to the system of rebate enjoyed by certain countries. The debates, the president of the Commission is already warning, will not be easy.
The fledgling Polish Presidency seems fully to intend to commence its work with a constructive frame of mind. “Negotiations on the multi-annual financial framework will be one of the most important missions of the Polish Presidency and the two other members of the troika, Denmark and Cyprus”, said Miko³aj Dowgielewicz, Polish Secretary of State for European Affairs. Major cross-cutting debates on the multi-annual financial framework will be held under the coordination of the General Affairs Council. The Parliament will be kept up to speed exhaustively. Additionally, the EP has also been asked to attend the informal meeting of the foreign affairs ministers of the Union, which will be held in Poland this July. The president-in-exercise of the Council hopes to be able to hold a major conference in the autumn, covering all aspects of the multi-annual financial framework, with the involvement of the EP and all of the national parliaments. This initiative will contribute towards communication and transparency.
Communication with the Commission has already worked well: 14 of the 27 commissioners have come to talk to the MEPs about this dossier, said Spanish MEP Salvador Garriga Pollego, rapporteur of the Parliament, who was also speaking on behalf of the EPP Group. Garriga Polledo believes that the gulf between Council and Parliament is too wide at the moment for any hope of an agreement. However, the Commission has made “enormous efforts”, which must be recognised. Although not entirely satisfied, the leader of the S&D Group, Germany's Martin Schulz, for once spoke in broadly positive tones about Barroso's words, though he did wonder aloud how it would be possible to do new work with less money. As to the success of the negotiations, Schulz said: “this hemicycle is full of budgetary policy luminaries, but it's a bit like football, having good players doesn't guarantee that you'll win”. One year ago, said the Belgian leader of the ALDE Group, Guy Verhofstadt, any talk of own resources and the financial transaction tax would have seemed impossible, but now we are doing it - that's progress! The Commission's proposal is a good one, the Polish Presidency really seems to want the debate, also with the national parliaments, so now the main job is, said the former Belgian prime minister, to get the citizens to understand that own resources does not mean more tax, but the opportunity for direct control over European expenditure.
There will be new taxes, but we will have to explain to the citizens that they are not the ones who will be paying them, but the major financial institutions, said the co-leader of the Greens/EFA Group, Daniel Cohn-Bendit. In the view of the German MEP, saying that the budget does not need to be increased is an error: how will we help the countries which aspire to democracy? Unsurprisingly, the Commission's proposals did not go down terribly well with Martin Callanan (ECR, UK). This is the wish list from the European elite, he said ironically, pleading in favour of a freeze on expenditure. This negative verdict was shared by his fellow Briton Marta Andreasen (EFD), who spoke out against a “misleading presentation” of the budget, disguising real increases. She does not believe that increasing the weight of taxation is the right solution. Portugal's Miguel Portas (GUE/NGL), on the other hand, called for a robust budget. For once, he praised the proposals on the financial transaction tax: manifestly, something has changed for the Commission, but will it have sufficient conviction to win others over?
In the general debate, despite certain reservations and the open hostility of some, the importance of this step the Commission has made was generally hailed, with several MEPs even talking about a “new mindset”. “The European Commission has fulfilled its commitments” and it has taken a “historic step” on revenue, said the chair of the budgets committee, Alain Lamassoure (EPP, France). The “infernal logic of adequate returns has finally been called into question”, all contributions will be reduced and the debate is opening on own resources for the first time. Lamassoure voiced his hopes that this debate would be broad and transparent.
The budgets of certain member states of the Union are increasing, but they are calling for rigour for the European budget, said Janusz Lewandowski, European Budget Commissioner. The Commission's proposals seemed to him to be a good basis for negotiation. He defended the sums put in reserve for unforeseen expenditure and congratulated the Commission on its “enormous efforts”, to reduce administrative costs and modernise traditional policies (for example, bringing the notion of conditionality into the cohesion policy). Lewandowski was determinedly optimistic on own resources, responding to those who believe that “that won't work” by pointing out that 60% of the citizens support this tax. (L.G./transl.fl)