Brussels, 24/07/2012 (Agence Europe) - On Tuesday 24 July 2012, the EU Council of Ministers issued its negotiating position for the draft European Union budget for the 2013 tax year, restricting the increase in payments to 2.79% of the 2012 budget figure (see EUROPE 10661). The Dutch, Swedish and British delegations voted against the position, and the Austrian delegation abstained. A press release explains that the Council's position combines the need to avoid an unnecessary burden on Member States' public finances in this period of budget consolidation with the need to take growth stimulus measures. It also takes due account of the fact that the 2013 tax year is the last tax year covered by the current Multiannual Financial Framework (MFF).
The biggest increase in payments is for Heading 1 (Sustainable growth), as befits the EUROPE 2020 Strategy for Growth and Jobs, with the focus on sub-heading 1b (Cohesion), where payments will rise by 8.07% to avoid running out of cash, as happened last year. Sub-heading 3a (Freedom, Security and Justice), which includes external border cooperation and immigration, is also a priority area for the Council (+5%). For the other headings and sub-headings, the Council is recommending either a cut or a rise sharply below the level of inflation, which also amounts to a cut on the 2012 level.
In absolute terms, the Council's negotiating position for the 2013 budget is a total of €132.7 billion in payments, 0.99% of EU27 gross national income (GNI) and €149.78 billion in commitment appropriations, which leaves a margin of €3.58 billion below the cap on the current MFF.
Compared with the 2012 tax year, the Council's negotiating position includes a €3.61 billion increase for payments and a €1.88 billion increase for commitment appropriations.
Compared with the draft budget unveiled by the European Commission, the Council is recommending cutting payments by a total of €5.23 billion and commitments by €1.15 billion.
The Council's negotiating position provides a negotiating mandate for the Cypriot Presidency in the talks with the European Parliament for the upcoming EU budget. The EP is due to adopt its amendments to the Council's position at the end of October. In the event of divergence between the Council's and the EP's positions, then a three-week conciliation process will begin on 24 October (ending on 13 November 2012).
The Council of Ministers issued a statement on the payment appropriations and two groups of countries issued joint unilateral statements. Austria, Denmark, Finland, France, Germany, Sweden, the Netherlands and the United Kingdom say that the 2.79% rise is higher than they would have liked and warn that no further increase in EU spending should be decided this year.
Estonia, Hungary, Poland and Romania say that the payments level set out in the Council's position is the bare minimum, particularly in terms of cohesion policy. (LC/transl.fl)