Brussels, 04/05/2012 (Agence Europe) - The EU member states seem to be nearing consensus on the less controversial negotiating box aspects of the 2014-2020 multiannual financial framework (all except cohesion, agriculture and own resources). Nonetheless, negotiation is being conducted according to the principle that nothing is decided until everything has been decided.
On Thursday 3 May, Coreper (the Committee of Permanent Representatives for member states with the EU) discussed a consolidated version of the negotiating box for the less controversial headings, namely: Heading 1 (smart and inclusive growth), except for cohesion policy and the Connecting Europe Facility (CEF); Heading 3 (security and citizenship); Heading 4 (Europe in the world); and Heading 5 (administration). The document also sets out a number of horizontal issues, including the matter of whether some instruments should fall within the 2014-2020 financial framework or remain outside.
Quite a large number of so-called “cohesion” countries called for a sub-heading 1b to be kept in place for cohesion policy.
Some so-called net contributor countries (Germany, the United Kingdom, the Netherlands and Sweden, for example) support initialling of the negotiating box which explains that the innovative financial instruments to be used for some areas of action (e.g. developing investment in Europe) must have an end date. The European Commission, on the other hand, does not share this view.
The so-called net contributor countries deem it is necessary to find a solution to the outstanding commitment (RAL - or commitment appropriations unused) problem, while others consider that this is a technical issue linked to annual budgetary procedure (and that it would be necessary to find a solution in this context).
On the subject of Heading 1 (for growth), many delegations said excellence should be a fundamental criterion for funding research and development. Some countries (for example Spain) nonetheless underlined that it was necessary to strike a balance so that all member states have access to funding.
On Heading 4 (external action), the Danish Presidency added in the negotiating box a phrase inspired by the principle of “more for more” (third countries that do more for democracy and human rights will receive more EU financial support). Some countries uphold this principle while others consider it also necessary to take account of the countries' objective needs.
On Heading 5 (administrative spending), many delegations said it was necessary, in these times of budgetary austerity, to save more than what the Commission is suggesting. The Presidency document underlines that additional savings of (x) million euro in the period 2014-2020 should be ensured through reforms to the staff regulations, and underlines that the development of pension costs should be tackled in reform of the staff regulations.
On horizontal matters, recurrent debate relates to the matter of maintaining flexibility to cover unforeseen circumstances (contingency reserve). This mechanism allows for a contingency margin amounting to up to 0.03% of EU Gross National Income (GNI), to be used according to qualified majority vote in Council. Many countries do not want flexibility of this kind, while others are in favour. Furthermore, a number of new EU countries have requested that VAT be included in the text. There are still differences between countries regarding whether or not the financial framework for the European Development Fund (EDF) should include funding for ITER and GMES and the contingency reserve for agricultural crises.
Coreper is to discuss, on 16 May, Headings 1 (cohesion) and 2 (agricultural spending) on the basis of the negotiating box. On 23 May, Coreper will hold a round table discussion on a complete version of the negotiating box (including own resources). Then, the General Affairs Council on 29 May will discuss the complete version of the negotiating box for the 2014-2020 financial framework. (LC/transl.jl)