Brussels, 07/05/2013 (Agence Europe) - At a meeting of the presidents of the European Commission, Parliament and Council of Ministers in the evening of Monday 6 May, the basis of a compromise to get the negotiation process going again on the European Union's multiannual financial framework (MFF, budget for 2014-2020). The first three-way talks on the MFF for 2014-2020 will take place on Monday 13 May. Work is continuing on the demand that the member states provide more cash so that the outstanding invoices for 2012 (totalling some €11.2 billion) can be covered, but are nowhere near agreement. EU economy and finance ministers will discuss the draft second amending budget for 2013 on Tuesday 14 May.
The compromise allowing the re-launch of budget talks was reached after a two-hour meeting between the president of the European Commission, José Manuel Barroso, the president of the European Parliament, Martin Schulz, and the Irish prime minister, Enda Kenny, who currently chairs the Council of Ministers. In a press release, the Irish Presidency of the EU Council of Ministers said that the three presidents “agreed on the vital importance of reaching agreement on the multi-annual financial framework (MFF) for 2014-2020. They agreed that work on both the MFF and the draft amending budget for 2013 (Ed: €11.2 billion) will be taken forward in parallel, with work on the draft amending budget continuing on the basis of a two phase approach. The Irish Presidency's aim remains to reach agreement on both during our Presidency of the Council of the EU (Ed: by the end of June 2013)”.
Schulz said that considerable progress had been made. The EP wants to ensure that all the invoices to the EU in 2013 will be paid. Talks on the EU's long-term budget can now begin, he said, noting that the EP refused to agree to budgets that would not cover expenses, thus repeating some of the mistakes that have been made in member states' budgets.
Further debate ahead on paying off 2012 invoices
The deadlock was mainly due to draft amending budget No. 2 for 2013, which is for an extra €11.2 billion to be added to the budget to pay the outstanding invoices from 2012. The European Parliament demands that the €11.2 billion be paid off before talks begin on the MFF for 2014-2020. The Irish Presidency will have its work cut out for it. Net contributor countries are divided over the amount to be paid in the first instalment (see EUROPE 10840). On Tuesday 7 May, the Irish Presidency submitted a draft compromise to the Coreper whereby €7.3 billion would be paid off immediately, and the remaining €3.9 billion later this year. At the Coreper meeting, the “cohesion” countries backed this idea. Some of the net contributor countries, like the Netherlands, the United Kingdom, Denmark and Sweden, said it was too soon to release such a big sum and more information was needed about exactly what the outstanding bills were for. Germany says the draft amending budget must not be agreed to until the EP has provided guarantees that it will agree to conclude talks on the MFF. The draft amending budget will be discussed at the Ecofin Council meeting on 14 May.
Alain Lamassoure (EPP, France), chair of the EP's budgets committee, said the Irish Presidency hoped a qualified majority vote would be possible on Tuesday on paying the first instalment of €7.3 billion, but the EP demands a promise to pay the second instalment too. He warned that, if this is vetoed, then the talks on the MFF for 2014-2020 will be put on hold.
The MFF talks will begin at a three-way meeting on 13 May and will focus on four issues - flexibility, a review clause, own resources and budget integrity. The institutions agree not to change the actual amounts (agreed upon by the European summit) for administrative spending. They also agree to speed up the talks on the terms and conditions of employment of European officials (see EUROPE 10840). (LC/transl.fl).