Brussels, 16/05/2012 (Agence Europe) - During presentation of the draft budget 2013 to the Ecofin Council, 11 countries of the EU (Bulgaria, Croatia, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Portugal, Romania and Slovakia) presented a joint declaration in which they support the 6.8% rise in payment appropriations proposed by the European Commission. The Commission, it is to be remembered, is banking on a budget of €138 billion in payments for 2013, i.e. a rise of €9 billion compared to the 2012 budget.
According to the 11 countries concerned, which were above all supported by Slovenia and Greece, cohesion policy has a key role to play in investing to exit the crisis. They go on to add that the multiannual character of cohesion policy implies a rising profile of payments towards the end of the current financial perspective (2007-2013). In addition, the slow start of new programmes and the impact of the economic downturn resulted in an extraordinary low payment level during the first half of this programming period. These postponed payments will have to be paid out in the last years of the current period, and the overlapping of the n+2/n+3 rules will put additional pressure on expenditures under Heading 1b (cohesion) next year, the declaration explains.
“The EU draft budget 2013 foresees an increased level of payments for cohesion policy. We support this justified and strongly needed increase”, the signatories of the declaration stress. It is necessary, they say, to avoid a situation in which reimbursements of expenses already made by the beneficiaries are delayed or paid only partially. “This can undermine the citizens' and businesses' confidence. In addition, it can aggravate the public finance stance of the member states that are beneficiaries of EU cohesion policy. Any cuts of payments in this area would be artificial and not based on real needs”, the countries signing the declaration point out. A further argument put forward is that the proposed level of payment appropriation in the EU draft budget 2013 will also help to curb the increase of outstanding commitments (RAL or “reste à liquider”) by reducing the gap between commitment and payment appropriations. Finally, being fully aware of the consolidation efforts made by member states, it is “crucial to respect commitments made in the past”, the declaration states, adding: “By not doing so, the credibility of the EU will be put at risk.”
The draft budget 2013 provides for €48.9 billion for cohesion policy, i.e. an increase of €5.1 billion compared with 2012.
Italy said that it does not subscribe to the declaration but that the latter does have its approval given that the draft budget 2013 is the result of a reduced level of payments in 2011 and 2012. The Czech Republic pointed out how important cohesion policy is, while underlining that it is necessary to make savings.
Spain reminded participants at the meeting of the context at national level (austerity, controlled expenditure) that must also be reflected in drawing up the EU budget for 2013. The Spanish minister defended a “realistic” budget, making sufficient allocations to allow commitments to be honoured and to ensure that difficulties are avoided for the countries and for the EU.
The bloc of net contributors also gave its stance. The United Kingdom said the rise proposed (+6.8%) was “unacceptable and inexplicable”. The British minister said that every single euro that goes to the European budget must be borrowed from the market - when deficits are to be reduced, not increased. Speaking for the Netherlands, the Dutch minister said it was impossible to justify a 6.8% rise before their parliament or public opinion and that, at EU level, the same effort must be made as at national level. The Netherlands has called for the 2013 budget to remain at the same nominal level as the 2012 budget (freeze in nominal terms). The French representative spoke out saying: “We cannot see how it is possible to separate this proposal, which involves a very considerable rise in payments, from national courses of action for returning to balanced public finances which is something we must all do”.
Austria was in favour of stabilising expenditure. The increase proposed, said the Austrian minister, is far too high “and we cannot agree to it”. He also criticised the rise planned in administrative spending. Finland took the view that the rise in payments should not exceed the level of inflation.
Germany did not take the floor during the debate on the draft budget 2013. (LC/transl.jl)