Brussels, 27/01/2012 (Agence Europe) - As expected, a number of countries, namely France, Germany, Austria, the United Kingdom, the Netherlands, Finland and Sweden, have asked the European Commission to revise its ideas about the draft EU financial framework (budget) for 2014-2020 on the grounds that far too much cash has been allocated to the various headings. Germany and the Netherlands want the Commission to reduce the overall budget by €100 billion in total over the seven year period. The seven countries do not agree among themselves about where funding should be focused, some talking about the common agricultural policy (France and Ireland), a large number about the cohesion policy (Bulgaria, the Czech Republic, Estonia, Greece, Latvia, Lithuania, Malta, Portugal, Slovakia, Romania, Slovenia, Spain, Hungary and others) and others growth and jobs-related policies. The negotiating policy of working from the bottom up by agreeing on the overall size of the budget before deciding how the cash should be divided up is welcomed by Germany, France and the United Kingdom, but criticised by a fair number of other countries.
The EU budget commissioner said that between 2008 and 2010, the budgets of the member states had increased by 60%, but the EU budget by 42%, and the value of the EU budget as a percentage of EU GNP will fall by 20% between 1990 and the Commission's predictions for 2020. The commissioner said Europe had to be invested in to create growth, jobs and competitiveness. Including monies not included in the EU budget, the Commission suggests €108 billion for 2014-2020, a 5% increase on the current seven-year period.
Germany says that it does not at all agree with the Commission's current ideas and the financial framework should amount to no more than 1% of the EU's gross national income (GNI) at current prices, including all the funds (even those the Commission suggests should not be included in the financial framework). Germany says €100 billion needs to be shaved off the Commission's suggestion, criticising the suggested funding for the cohesion policy, saying that funding should focus on the basics, but backing the Commission's idea of reducing farming's share of the EU budget.
The United Kingdom recommends reduced expenditure in a number of areas, including farming, the cohesion policy and administration. The UK disagrees with the Commission's suggestions for spending (which it wants to remain at current levels) and income (wanting to keep the British rebate and not wanting to contribute any more to the EU budget). The Netherlands say that the EU must spend better, not more, and Structural Funds should only go to the poorest regions. The Dutch want farm spending to be frozen (which amounts to an 8% cut in reality).
Ireland is one of the countries that supports the Commission's suggestions, adding that the proposed farm budget is the minimum needed and criticising the macroeconomic conditions applied for the Structural Funds (this is also criticised by Greece).
Belgium says the Commission's ideas are balanced and reasonable. Belgium recommends a root-and-branch reform of the way the EU's budget is financed and wants a new way of providing the EU with cash, the Tobin Tax, for example. It criticises the proposed reduction in aid for Belgian farmers due to rebalancing of the CAP.
France says that European spending must be properly managed and have a viable future, adding that the Commission is suggesting far too much money and needs significant reductions. Several countries raised the problem of unpaid commitments during the current period (2007-2013), which France says will amount to €245 billion in 2013.
Greece says that the Commission's ideas do not go far enough and wants to discuss the financial transaction tax.
Italy says that the Commission's suggestions for the new types of independent EU funding are interesting and need to be explored, but they are rather vague at present. Italy says it is not happy with the suggested budget for the CAP and the Cohesion Fund. Italy says the EU's money needs to be earmarked much more efficiently and take account of budget constraints, saying that the same criteria the EU is recommending for the member states should apply to the EU itself.
Sweden says the Commission has come up with a slimmed down, effective budget, but much needs to be improved. Sweden says that spending in 2014-2020 should remain at the current level and criticises the budget for the CAP. Lithuania, Portugal, Slovenia, Estonia, Bulgaria and Luxembourg agree with the amounts suggested by the Commission. Spain will become a net contributor to the EU budget at some point between 2014 and 2020, and says that the Commission's suggestions are a good compromise and a good starting point, particularly for the Cohesion Fund. (LC/transl.fl)