Brussels, 23/10/2012 (Agence Europe) - In Strasbourg on Tuesday 23 October, during adoption of an interim report on the multiannual financial framework (MFF) for 2014-2020, the European Parliament warned that it would not agree on the expenditure set out in the budget unless there is agreement to reform the income side of the budget. The European Council hopes agreement will be reached on this highly controversial issue at a special European Summit on 22 and 23 November.
Alain Lamassoure (EPP, France), chair of the European Parliament's Budgets Committee, said ironically that one would think the EU budget was not financed by European taxpayers, but rather by European budget ministers. The Parliament wants to reform the “own resource” system and Lamassoure said the Parliament wanted agreement in principle on such reform, on own resources that can replace the existing contributions from countries, scrapping unfair privileges and the timing of introducing these changes.
Adopting by a wide majority a report by Ivailo Kalfin (S&D, Bulgaria) and Reimer Böge (EPP, Germany), the MEPs said that any new “fiscal capacity” for the eurozone should be drawn up as an EU process and subject to democratic scrutiny. It should be part of the bigger EU budget (see separate article).
The MEPs challenge the Council of Ministers to publicly identify where the axe should fall if the ministers decide to slash the 2014-2020 budget. MEPs say the Cohesion Policy and Common Agricultural Policy must be maintained “at least at the level of the 2007-2013 period,” but used more effectively. The European Parliament wants a more transparent and fairer method of financing the budget, without rebates or corrective mechanisms. In a separate resolution, also voted on Tuesday, it calls for a simpler VAT own-resource system for the EU. Furthermore, MEPs welcome the planned financial transaction tax and say it should be used to reduce the national contributions to the EU. (LC/transl.fl)