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Europe Daily Bulletin No. 10785
INSTITUTIONAL / (ae) budget

Lamassoure says budget unity could be under threat

Brussels, 13/02/2013 (Agence Europe) - Alain Lamassoure, the chair of the European Parliament's budgets committee, believes that, after the outcome of the European Council on the multiannual financial framework (MFF) on 7-8 February, the “conflict” between the European Council and the European Parliament has two dimensions. One dimension is political - the battle over the figures, budgetary flexibility, the revision clause, new own resources. The other dimension is institutional - because the European Council conclusions “ignore the Lisbon Treaty” in making provision for legislative changes.

Nevertheless, in its conclusions the European Council commits to respecting the procedures of the treaty. With regard to the MFF regulation and the rules on own resources, the Council will adopt the acts after approval of the Parliament (on the MFF) and after consultation with the Parliament (on own resources). The part of the agreement relating to the financial aspects of the sectoral legislative acts gives a mandate to the Presidency to finalise the legislative work in co-decision with the Parliament.

Agence Europe: How do you estimate the Parliament's margin for manoeuvre in the final negotiations on the financial framework?

Alain Lamassoure: In one of the draft conclusions there was a paragraph on budget flexibility that we were pleased about, but it was withdrawn at the request of David Cameron. If we are being optimistic, we could say that, if European Council isn't discussing it, it's because everything is negotiable. We will see how things lie pretty quickly.

There is another very important point that the European leaders didn't speak about, but which, in my opinion, has to be negotiable, and that's the unity of the budget. A few months ago we saw the beginnings of an idea, which was mentioned in three consecutive European Councils, on the own budgetary capacity of the eurozone. This idea has been put on the back-burner since the December European Council, so as to leave time for the German elections, but it will make its appearance again after the German elections. We are not necessarily hostile (at the Parliament) but on one condition - that this budgetary capacity for the eurozone is part of the Community budget. If that doesn't happen, we run the risk of seeing Europe split in two - with the so-called EU27 or 28 on one side for its old policies, and the eurozone budget (including everything that is innovative and interesting) on the other side, which could be fed by genuine new own resources. For the time being, the unity of the budget is not threatened but it will be from next autumn onwards (after the German elections).

Added to this is a new dimension which is under-estimated by the European Council. Of the 48 pages of the European Council conclusions, more than half relate to the legislative domain - which was acceptable before the Lisbon Treaty but is not so any longer. Nowadays everything that is legislative falls within the remit of the Parliament shared with the Council of Ministers. Indeed, in the European Council conclusions, on ten or so pages, it's explained how the cohesion funds will be distributed, what amounts will be added to such and such a country - but all that relates to the legislative procedure. A vote took place in the Parliament's agriculture committee on the common agricultural policy (CAP) reform but the European Council ignored it all and took a different position (Ed: especially on the convergence and greening of aid). There are presents for Poland and Slovakia, the leaders of the friends of cohesion…

Agence Europe: What will the procedure and timescale be for assessing the European Council conclusions?

Alain Lamassoure: The conclusions will depend on a three-part legal interpretation: (1) the two complementary texts (single vote of the European Parliament in accordance with the approval procedure) - in other words, the CAP regulation and inter-institutional agreement (flexibility, revision clause, unity of the budget); (2) the own resources decision (the Parliament is consulted). But the Parliament wants there to be - probably in the inter-institutional agreement - a statement with a political commitment to reforming the system of own resources, with a timescale and guidelines on how to do this; (3) the 70 draft legislative acts under way at the Parliament and Council. We need to ensure that the Parliament's right of amendment on the content of legislative decisions is not abnormally limited by the Council, before giving the final vote.

Agence Europe: Do you think that anything new might come into play on own resources?

Alain Lamassoure: We can decide tomorrow to allocate all or some of the financial transaction tax to the EU budget.

Agence Europe: Do you expect real negotiations on the three areas of flexibility, the revision clause and own resources?

Alain Lamassoure: There will be an awful lot of negotiation. The Parliament is very much at ease as there is no urgency for us. If there is no agreement by 31 December 2013, it is the 2013 ceilings that will continue to be applied. And we can very well come to an agreement on the legal bases of the programmes to follow from 2014 onwards on the bases of the 2013 ceilings. Around the Council's negotiating table some countries are in a great hurry because if there is no agreement by 31 December some rebates will disappear. The Parliament has every reason to leave this whole issue to its successor, with European elections due to take place next year.

Agence Europe: So there is a real risk of the agreement being rejected at the Parliament…

Alain Lamassoure: For the yes or no approval vote, we need 378 yes votes at the Parliament - otherwise the European Council conclusions will not be approved. The two extreme sides (GUE, eurosceptics, non-attached and extreme right) will vote against - except perhaps the British Conservatives. The Greens will vote against. In the ALDE Group, a third will vote for, a third against and a third will abstain. When it comes to the two big groups (EPP and S&D), the representatives of the parties in power in their country will have a strong incentive to vote in favour. Those who are in opposition will have no such incentive to vote for the European Council compromise.

Agence Europe: Will the Parliament be able to negotiate the amounts of the financial framework?

Alain Lamassoure: The European Council will not be able to avoid talking about this, given that, in the autumn, the German elections will be over. Before the plenary votes, the Parliament should swiftly adopt a resolution (in March) in which it will state everything bad that it thinks of the European Council agreement on the 2014-2020 financial framework. (Interview conducted by LC/transl.fl)

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