Brussels, 07/11/2012 (Agence Europe) - EU member states are preparing for tough and lengthy talks with the European Parliament in Brussels on Friday 9 November with the aim of reaching agreement on the EU's budget for 2013. In addition to the clash over payment appropriations for 2013, the two arms of the budget authority will be fighting it out to find a solution to the shortfall in the 2012 budget (€9 billion in payment appropriations).
The Budget Council will start on Friday at 10.00am and is expected to come up with guidelines for the Cypriot Presidency for the Conciliation Committee meeting on the 2013 budget later the same day. After the Conciliation Committee meeting, the Budget Council will resume and discuss developments. If the Conciliation Committee reaches agreement on a common document, the Council and the Parliament will have a fortnight to approve it.
On 24 July 2012, the Council decided to restrict the 2013 budget to €132.70 billion in payment appropriations, a 2.79% increase on 2012. The Council suggests €149.78 billion in commitment appropriations (up 1.27%). The Parliament wants €137.90 billion in payment appropriations (up 6.82%) and €151.15 billion in commitment appropriations (up 2.20 %). The main sticking points are the total budget as measured in payment appropriations; - under sub-heading 1a (Competitiveness), the Parliament wants funding for measures like the EUROPE 2020 Strategy and research that would break the cap set for the multi-annual financial framework (MFF, the seven-year budget), using the flexibility instrument to raise €50 billion of the extra funding. The Council says the MFF upper limits are sacrosanct and it dislikes use of the flexibility instrument for this end; - under sub-heading 3a (Freedom, Security and Justice), the Parliament wants appropriations earmarked for domestic security to be placed in reserve, which the Council opposes. One of the trickiest issues will be the draft amending budget 6/2012 to cover the 2012 budget shortfall (€9.0 billion in payment appropriations, see EUROPE 10720 for details). (LC/transl.fl)