Brussels, 01/02/2013 (Agence Europe) - Wrangling between European leaders is becoming more intense ahead of the European Summit which, on 7 and 8 February, will be mainly devoted to the next budgetary framework 2014-2020. The last episode to date, after his meeting with the presidents of the European Commission, José Manuel Durão Barroso, and the European Council, Herman Van Rompuy, was when Italian Prime Minister Mario Monti met German Chancellor Angela Merkel in Berlin on Thursday 31 January before her meeting with French President François Hollande, on Sunday 3 February.
It is essential, Monti said, that the EU financial framework should support economic growth, employment and the economic and social cohesion of Europe. However, he went on, speaking shortly before his meeting with the chancellor, it is also important for the Italian contribution to be proportionate and equitable compared to those from other net contributors. Although not to the same extent as the United Kingdom, Germany does recommend substantial additional cuts (around €30 billion) to the last 7-year €973 billion proposal that the president of the European Council had put on the table. The cuts could affect all sectors, thus putting a brake on growth and employment, which are essential for countries such as Italy and Spain, which have been made fragile by the crisis.
Furthermore, the Italian prime minister considers his country's contribution to the European budget excessive. Italy was apparently the largest net contributor in 2011. Addressing British Prime Minister David Cameron, Monti apparently said it is necessary to have, in particular, reform of the reimbursement and rebate system that is to the advantage of some countries but financed by others. The system, he said, must become more transparent and equitable.
The Chancellor admitted that the budget talks would be tough because Italy was clearly going to defend its interests, but said she was optimistic about a successful summit, because a lot of progress had been made over the past few months. Germany will probably flesh out its position after an interview between Merkel and the French president, Francois Hollande, in Paris on Wednesday 6 February. Like Italy, France is determined the defend direct payments for its farmers. Despite the cuts it is demanding, Germany also wants to defend the recommended funding mechanism for regions like the Länder of east Germany, which would most likely otherwise no longer benefit from subsidies from the EU Structural Funds. The three leaders are expected to mount a common front against David Cameron, who is refusing to budge on the question of budget cuts. (FG/transl.jl/fl)