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Europe Daily Bulletin No. 10498
Contents Publication in full By article 15 / 38
GENERAL NEWS / (ae) eu/budget

EP agrees to freezing of payments in 2012

Brussels, 18/11/2011 (Agence Europe) - On Friday 11 November 2011, the EU Council of Ministers and the European Parliament (EP) were locked in lengthy talks about the EU's budget for 2012 and, as we went to press this Friday, the European Parliament delegation had offered to agree to the level of payment appropriations set out by member states on 25 July 2011, namely €129.1 billion, which amounts to a freezing of the 2011 budget (decided upon in December 2010) given that 2% inflation is forecast for the whole of the year.

In return, the European Parliament has made a number of demands that the Council of Ministers will now examine, such as a rise in the level of commitment appropriations above the level initially voted through by the EP, namely €147.8 billion, nearly 4% higher than in 2011.

The EP wants the Flexibility Instrument to provide €200 million - €50 million for Competitiveness and €150 million for Foreign Action (extra cash for Palestine).

The EP delegation, following the lead of EP President Jerzy Buzek, recommended that Amending Budget 6 be agreed for 2011, with a €550 million rise in payment credits. Some EU member states challenged the figure because we have not yet reached the end of 2011, but the EP finally agreed to a statement about ITER (the global nuclear fusion project) for which extra funding of €1.3 billion is required in commitment appropriations for 2012-2013, and for which the Council of Ministers and Commission have agreed to find €100 million in 2012.

The Polish Presidency has less room for manœuvre than in July this year because the United Kingdom, the Netherlands, Sweden, Denmark, Finland and Austria have all opposed the Council of Ministers' position on the draft general EU budget for 2012. (LC/transl.fl)

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