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Europe Daily Bulletin No. 10416
A LOOK BEHIND THE NEWS / A look behind the news, by ferdinando riccardi

Debate on 2014-2020 financial perspectives to continue until end of next year - EU profile will be transformed as a result

What this issue really means. The debate on the second major challenge facing Europe is as important as the debate on the future of the euro and has kicked off in what can be described as excellent conditions. I am referring to the EU's financial perspectives for 2014-2020 and in an effort to avoid any reductionist description this does not exclusively focus on the question of the budgets. It is true that the concrete objective involves defining the seven Community budgets for the period covered and not these perspectives - but their implications go so much further! They will create their own Community resources, which will enable the EU largely to fund itself, without having to resort essentially to contributions from member states. These perspectives will guide future Community operations as a whole by establishing the degree of support for different common policies, both on the domestic front and in relations with third countries. They will also remove the rebates agreed for certain member states, as well as other anomalies which have accumulated over the years. The new financial perspectives will change Europe's profile by defining the very nature and goals of the EU tomorrow.

An encouraging start. Why do I consider that the negotiations, which are going to go on for at least a year and a half, have begun in favourable conditions? Mainly for three reasons: (a) the European Commission presented daring and innovative proposals; (b) a very clear majority at the European Parliament reacted extremely positively, as well as bodies such as the Committee of the Regions; (c) several member states approve even though they are still cautious about this question because they are aware that other governments hold an opposing position and that unanimity will be necessary. A cautious approach can also be explained by the essential question concerning revenue, which will require ratification by the 27 national parliaments.

It is easy to understand to what extent the discussion between member states and the need to find compromises will be a very difficult endeavour. Nothing can be anticipated in advance but for the time being what is currently happening on the ground is what counts, such as the Commission document and the reaction by the Parliament.

The Commission president evolves. The attitude displayed by Mr Barroso has astonished those who had an image of a president who is largely dependent on what the major member states want and in this connection there has been progress. When he is convinced that a project is positive for pushing Europe forward, he now presents and defends it with both firmness and skill. Last week in Strasbourg, even the groups that are usually very critical of him this time gave him their broad support.

I am not, however, going to go over the history of events of which our readers are regularly informed. At the beginning of the month in EUROPE 10409, a summary of the Commission document was provided, with a specific analysis of the own resources planned and initial reactions. EUROPE 10411 provided specific indications on the agricultural question and at the end of last week EUROPE 10413 contained a report on the presentation of Mr Barroso's document at the Parliament and the main points of the parliamentary debate. In these articles readers were able to find all the pertinent information they required, which can still be consulted. I would like to add a few more comments and look at three important positions that have been taken.

Pointing it out. Alain Lamassoure, the chair of the EP budgets committee, underlined that the new scale planned for EU own resources is a historic step forward. He said that the EP had been calling for this for four years and that the payment to the Union of one point of VAT had been agreed at the time, even by Mrs Thatcher. Thus “the infernal logic of fair return is now finally subject to question because all member states will pay less”. Daniel Cohn-Bendit insisted on the need to explain clearly to citizens that the tax on financial transactions will not be a burden to them but will be shouldered by the “financial institutions that fully benefit from European unity”. Guy Verhofstadt enthusiastically asserted that “to talk about own resources and the Tobin Tax would have been impossible last year!”

Why the quotes? Because they allow me to refrain from using my usual dictum that European construction is going through a creative period and that the historians of tomorrow will consider it as the birthplace of historical progress. This time it's Guy Verhofstadt, Alain Lamassoure and Daniel Cohn-Bendit, belonging to three different political groups, who are saying it. What a relief!

Tomorrow, a few more technical remarks will be added, as well as comments about the “Lamassoure project”. (F.R./transl.fl)

 

Contents

A LOOK BEHIND THE NEWS
THE DAY IN POLITICS
GENERAL NEWS
SUPPLEMENT