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Europe Daily Bulletin No. 10719
Contents Publication in full By article 14 / 33
INSTITUTIONAL / (ae) budget

Cypriot proposal on 2014-2020 financial framework, on Monday

Brussels, 26/10/2012 (Agence Europe) - Negotiations on the multiannual financial framework 2014-2020 are to enter the heart of the subject with the presentation, on Monday 29 October, of a new version of the negotiating box containing, for the first time, figures on expenditure.

The text will be presented on Monday to Coreper (the committee of permanent member state representatives with the EU), and the Cypriot Presidency indicates that mediation is still under way on what figures should be put forward. It will take a decision this weekend in close collaboration with the cabinet of the president of the European Council, Herman Van Rompuy, on negotiating box figures. It refuses all comment on information in the press relating to a reduction of at least €40 billion affecting all headings of the EU budget (common agricultural policy and cohesion policy in particular) in the European Commission's proposal. The latter is counting on a financial framework for 2014-2020 of €1,033 billion in commitments and €987 billion in payments for the period 2014-2020, i.e. a rise of nearly 5% compared to the 2007-2013 period.

The Cypriot Presidency has no clear timetable for the follow-up to talks between now and the European Council of 22 and 23 November, in Brussels, when heads of state will seek to thrash out an agreement on the issue. A General Affairs Council will be held just a few days before the European summit, according to information available.

The Commission's proposal is rejected by seven countries - the United Kingdom, France, Germany, the Netherlands, Finland, Sweden and Austria - the “friends of spending better” and all net contributors to the EU budget. They request that the Commission's proposal will be cut by €150 billion in commitments. On the other hand, 14 EU member states (Bulgaria, Czech Republic, Estonia, Greece, Hungary, Lithuania, Latvia, Malta, Poland, Portugal, Romania, Slovakia, Slovenia and Spain), nicknamed the “friends of cohesion” and all net beneficiaries of the European budget, defend an ambitious budget, at least that proposed by the European Commission.

The president of the European Council, Herman Van Rompuy, set out on a mission to seek to bring the EU countries back within the meaning of the compromise. He was thus in London on Thursday to meet David Cameron. The British prime minster has much to lose by keeping up an intransigent attitude. Without agreement, the next budget will be brought into line with that of 2013 (and even adjusted upward to keep account of inflation). Herman Van Rompuy said in London that, at the end of the day, this would be effectively more costly. The money invested in infrastructure projects in countries such as Hungary also benefits companies in the United Kingdom, he added, speaking before British employers. (LC/transl.jl)

Contents

A LOOK BEHIND THE NEWS
EUROPEAN PARLIAMENT PLENARY
EXTERNAL ACTION
INSTITUTIONAL
ECONOMY - FINANCE
SECTORAL POLICIES
COURT OF JUSTICE OF THE EU
EVENTS CALENDAR