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Image header Agence Europe
Europe Daily Bulletin No. 10650
Contents Publication in full By article 11 / 29
INSTITUTIONNAL / (ae) budget

Ministers restrict rise in payments to 2.8% for 2013 budget

Brussels, 06/07/2012 (Agence Europe) - The Council of Ministers is expected to reduce payments in the draft EU budget for 2013 unveiled by the European Commission by more than €5 billion. On Thursday 5 July 2012, the budgetary committee agreed by a wide majority in an informal vote on the Council of Ministers position on the 2013 budget. Some “net contributor” countries reportedly wanted further reductions to be made to the Commission's draft plans. A three-way budget meeting (Commission, Council and Parliament) will take place on Monday 9 July and COREPER is expected to endorse the Council's position on the 2013 budget, which will then be formally adopted in an upcoming meeting of the EU Council of Minnisters.

The Council's position restricts the payment appropriations for 2013 to a 2.79% rise on 2012, but the Commission suggested a 6.85% rise. For commitment appropriations, the Council suggests a 1.27% rise, as opposed to the 2.05% rise suggested by the Commission.

The Council wants to focus cash on measures that can stimulate growth and reduce the burden on the public purse in these times of spending cuts.

The Council has reduced the Commission's payment appropriation plans by €5.2 billion in total, €1.9 bn from the competitiveness heading, €1.6 bn from the cohesion heading (1b), €491 million from Heading 2 (Management of Natural Resources, which includes farm spending), €1 bn from Heading 4 (Foreign Action), and €146 million from Heading 5 (Aministrative Spending). The Council has reducd the initial commitment appropriations package by €1.2 bn.

The Council's position includes a total of €132.7 bn in payment appropriations, 0.99% of the EU27's gross national income (GNI) and €149.78 bn in commitment approprations (which leaves a margin of €3.6 bn under the current Multiannual Financial Framework). The Council of Ministers' suggests the following amounts per heading:

1 (Growth): €59.03 bn in payments (up 6.71% on 2012) and €70.05 bn in commitment appropriations

1a (Competitiveness): €11.66 bn in payments (up 1.50%) and €15.56 bn in commitment appropriations (up 1.04%)

1b (Cohesion): €47.38 bn in payments (up 8.07%) and €54.49 in commitment appropriations (up 3.30%)

2 (Natural Resources): €57.47 bn in payments (up 0.77%) and €59.97 in commitment appropriations (down 0.01%)

3 (Citizenship, Freedom, Security and Justice): €1.51 bn in payments (up 0.78%) and €2.06 bn in commitment appropriations (down 1.25%).

4 (Foreign Action): €6.28 bn in payments (down 9.75%) and € 9.3 bn in commitment appropriations (down 1.17%)

5 (Administration): €8.4 bn in payments (up 1.47%) and €8.4 bn in commitment appropriations (up 1,43%)

The negotiations with the European Parliament will be tough (the economic crisis, the last year of the current financial framework, negotiating the new financial framework for 2014-2020 and the EP's acceptance in the past two years of the figures decided upon by the Council of Ministers). The EP is expected to express its views on the Council's position by the end of October. (LC/transl.fl)

Contents

ECONOMY - FINANCE - BUSINESS
CYPRUS PRESIDENCY
INSTITUTIONNAL
SECTORAL POLICIES
EXTERNAL ACTION
COURT OF JUSTICE OF THE EU
EVENTS CALENDAR