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Europe Daily Bulletin No. 10448
Contents Publication in full By article 18 / 25
GENERAL NEWS / (ae) eu/budget

Debates on 2014-2020 framework structure and flexibility

Brussels, 08/09/2011 (Agence Europe) - On Monday 12 September, in Brussels, the General Affairs Council will discuss over lunch the duration, structure and flexibility of the next multiannual financial framework of the EU. The Polish Presidency of the EU Council is striving to prevent Council discussions on Monday from becoming too political. One must remember that, after the informal Sopot meeting, the Presidency said that member states consider Commission proposals are a good basis for work, despite differences between so-called “cohesion” countries and so-called “net contributor” countries to the EU budget.

The Polish Presidency of the EU Council will, on Monday, present European ministers with a report on the technical clarifications provided to the “friends of the presidency” working group, which met three times in July to discuss the duration, structure and flexibility of the next multiannual financial framework. The Council will then discuss the matter over lunch. With regard to duration, there is consensus within the Council working group to take on board the Commission's proposals for the forthcoming seven-year financial framework, from 2014 to 2020.

A number of delegations, especially those from net contributor countries to the budget, criticised the creation of several new instruments outside the multiannual financial framework (funds devoted to the ITER experimental fusion reactor and to the European initiative for global surveillance of the environment and security GMES, and the new special reserve for agricultural crises) in addition to the current instruments outside the framework (flexibility instrument, EU Solidarity Fund, European Globalisation Adjustment Fund, and the emergency aid reserve).

The Commission proposes new tools allowing greater flexibility to be ensured for the EU budget in order to allow effective breakdown of resources and rapid Union response in the event of unforeseen circumstances. The elements of flexibility suggested by the Commission hardly arouse any enthusiasm among a number of EU member states. The Commission therefore suggests: - increasing from €200 to €500 million the allocation for the flexibility instrument; - extending the scope of the emergency reserve (in order to also cover situations in which migratory flows exert specific pressure on the EU's external borders); - extending from 5 to 10% the possibility of moving away from the indicative amounts given in the programmes under co-decision (in order to increase flexibility within headings); - increasing flexibility for projects funded under the recently created infrastructure support mechanism; - setting up a new special reserve for crises in the agricultural sector with an annual budget of €500 million; - and setting in place a margin for unforeseen events, which can be mobilised over and above ceilings of the financial framework within the limit of 0.03% of GNI (EU's Gross National Income).

Own resources. The “own resources” working group of the Council recently examined Commission proposals on the chapter of receipts. A number of member states showed themselves to be sceptical about the project to create new own resources for the EU (tax on financial transactions, new VAT resource) and on the proposed correction mechanism reform (to transform current corrections into gross reduction of GNI payments).

The Polish Presidency of the EU Council told Coreper (Committee of member states' permanent representatives with the EU) on Thursday 8 September that, before the General Affairs Council, it would, on Monday 12 September, meet three MEPs representing the EP to discuss the next multiannual financial framework. The MEPs in question are: Alain Lamassoure (EPP, France), the EP budgets committee chairman; Jutta Haug (S&D, Germany); and Reimer Böge (EPP/Germany). (L.C./transl.jl)

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