Brussels, 07/02/2013 (Agence Europe) - European leaders met in Brussels again on Thursday 7 February in order to try and find an agreement on the 2014-2020 multiannual financial framework. The start of their work was announced for 8.30pm.
According to the last information before going to press, the latest compromise proposals prepared by Herman Van Rompuy were due to focus on a total envelope of €956.9 billion for commitment appropriations, which represents €15 billion less than in the November compromise. Payment appropriations are around €929 billion, in other words around €10-15 billion less than in the November draft. These figures would correspond more or less to what British Prime Minister David Cameron and German Chancellor Angela Merkel are calling for.
The main part of the cuts would be seen in the envelope for infrastructure (from €31.2 billion in November to about €20 billion, while the Commission is counting on €40 billion, without counting the €10 billion coming from the structural funds). The budget for infrastructure is nonetheless the bearer of future jobs in the telecommunications, internet and renewable energy sectors. Cuts have also been made to the envelopes for administrative spending and external action expenditure. The EU solidarity fund and globalisation adjustment fund would apparently also be affected by cuts.
The sums recuperated would not allow much contribution, compared to the November draft, to the allocation for common agricultural policy (CAP) aid and cohesion policy aid. These two policies underwent the main part of the cuts in the November compromise.
Van Rompuy has proposed an initiative for youth employment allocated between €5-6 billion over seven years, according to indications, which is to be distributed between the regions of the EU that are most affected by youth unemployment. Part of this youth fund would come from new money and part from the European social fund.
Merkel said on her arrival at the European Council: “We can't currently say if there will be an agreement. The various positions are still quite far apart.” French President François Hollande for his part said that if the compromise for the EU 2014-2020 budget should lead to “forgetting agriculture and ignoring growth”, he would “not agree”. “France is well aware that savings need to be made but, at the same time, we must not weaken the economy”, he said. Before the start of the summit he met the heads of government from Spain and Italy, Mariano Rajoy and Mario Monti.
As far as British Prime Minister David Cameron is concerned, he said on Thursday that there would “not be agreement” on the European budget without further cuts. He said that in November the figures presented were too high and that they must come down. “If that's not the case, there will not be agreement”, he said.
The Czech prime minister seems to be just as inflexible and said that he had “come to Brussels for the discussions on the multiannual budget with a strong and clear mandate from the Czech government”. He also said that he was ready to “use the veto”. Earlier, Mario Monti had also threatened to veto any agreement that he considered as bad for his country and for Europe.
Suggested revision clause. Jean-Pierre Audy MEP (EPP, France) called on Thursday 7 February for a political revision clause in the 2014-2020 European financial framework. He supports the idea of a financial revision clause in 2016. He is pleased that the idea of a revision clause in 2016 is making headway. This is to give the member states breathing space on the financial level as they have to confront recovery of their public finances, a contribution to the EU budget and funding the European Stability Mechanism. “I am proposing freezing appropriations for the 2014-2016 period and negotiating a revision clause for the 2017-2020 period”, Audy said. The political context will be different and Audy believes that the developments should therefore be taken into account. “In 2016, we will have a new president of the European Parliament, a new European Commission, and a new president of the European Council. In 2016 most of the states having signed the treaty of stability, coordination and economic governance (“golden rule”) should have ratified it. In 2016 will should have allocated the EU own resources. In 2016 it is possible the United Kingdom might have left the European Union. Before 2016 and at the 2014 European elections we will be able to hold a political debate on all the main subjects related to the financial framework - agriculture, cohesion funds, scientific research. Let's not take decision without consulting the people!” he said (our translation throughout). Audy believes that the political context is not favourable to a good European agreement and that it is necessary to leave a bit of time now and again in order to find European ambition, confidence in democracy and hope of the people in Europe again. (LC/transl.fl)