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Europe Daily Bulletin No. 10481
Contents Publication in full By article 21 / 31
GENERAL NEWS / (ae) eu/budget

2014-2020, differences on conditionality of budget provisions

Brussels, 24/10/2011 (Agence Europe) - The big conference on how to fund European policies helped to develop “a convergence of views on many essential aspects”, such as a more flexible budget or a budget that was more linked to the EUROPE 2020 strategy, announced Vice-President of the European Commission Maros Sefcovic on Thursday 21 October. Nonetheless, he took note of “the doubts expressed on the idea of conditionality but, like others, I am convinced that it can have positive effects” (suspension of structural and cohesion funds in the event of a country breaching the provisions contained within the Stability and Growth Pact).

Sefcovic, who is the commissioner responsible for inter-institutional relations, concluded the conference debates (EUROPE 10477) with a reference to an agreement between the participants (representatives from the EU institutions, from EU member states and from national parliaments) on: - the necessity of focusing on what is done best at the European level (single market, investment in infrastructure and research etc); - the need to maintain a link between the EU budget and the EUROPE 2020 (political) strategy; - the need to have a more flexible budget and focus on the quality of spending; - the need to go further in the simplification of how European expenditure is used (this responsibility, however, is shared between the EU and the national authorities, the commissioner pointed out).

The commissioner also underlined the fact that a consensus existed on “the need to keep an open mind” when discussing the issue of own resources for the EU. He noted that the participants advocate having a more transparent way of financing the EU, one which would end the discussions around net beneficiaries and contributors. Finally, he also pointed out the need to continue this dialogue, and in particular the need to involve national parliaments further.

José Manuel Barroso, the president of the European Commission, and Polish Prime Minister Donald Tusk attempted to demolish the arguments of those opposing a generous European budget: “Don't be misled by the myth that this is money for Brussels. It is not”, declared Barroso. He explained that the money from the EU budget went to young people who could not find work, researchers, SMEs and the regions. Tusk emphasised: “We have to resist the fallacious and malicious arguments that claim that if we spend more on Europe we will make the crisis worse. This is not true!” The polish prime minister advocated a generous and well-thought out European budget. He defended the Commission proposal for the financial framework for 2014-2020.

The president of the European Parliament, Jerzy Buzek, said that the future agreement on the multiannual financial framework should be “an alliance that is not just financial but political too”. He added: “We want this budget to reflect current challenges and for it to ensure that the EU remains strong over future decades.”

Barroso also stated that “the EU budget can make a real contribution to growth and prosperity”. He also spoke about a budget for investment in the European Union, investment in infrastructure, investment in SMEs and investment in our regions, investment in training, education and jobs. He explained that this “is a budget for investment in European citizens”.

Own resources. Barroso underlined the Commission's objective of no longer exclusively counting on national contributions to be used for the EU budget. He stated that “the EU must entirely finance itself through its own resources”. This point of view was shared by Buzek.

Agreement sought in just over a year. In conclusion, Maros Sefcovic stated: “while I realise that our task is not easy, I believe that we are on the right track to reach an agreement on the next financial framework by the end of 2012 that is fair and balanced and retains the ambition and focus of the Commission's proposals. Times are tough but as the Commission set out in the roadmap to stability and growth, targeted investment at EU level is key to making the most of the single market and getting Europe growing.”

Second conference of this kind under the Danish Presidency. The new Danish minister for European affairs, Nikolai Wammen, stated that his country would organise a similar conference on the post-2013 multiannual financial framework. This issue will be one of the most important dossiers of the Danish Presidency (1 January- 31 June 2012).

Reimer Böge (EPP, Germany) and Alain Lamassoure (EPP, France) deplored the fact that the debate on the three themes (own resources, spending priorities and added value) took place behind closed doors. (LC/transl.fl)

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