Brussels, 28/06/2013 (Agence Europe) - On Friday 28 June, reacting to the agreement the previous day on the European Union's budget (see EUROPE 10876), the European Summit said it “welcomed the agreement reached on the EU's Multiannual Financial Framework (MFF) for the coming seven years.” On Wednesday 3 July, the European Parliament is due to endorse the final compromise, which will then be given formal legal status in September in a vote on the draft budget legislation. David Cameron surprised everyone by bringing up the question of protection of the British rebate.
At a press conference after the summit on Thursday, the president of the European Council, Herman Van Rompuy, sad that the summit had reached agreement and the approval of the seven-year budget by the member states was unequivocal. It adopted the MFF negotiated with the European Parliament on Thursday, explained the French president, François Hollande (see EUROPE 10876). The German chancellor, Angela Merkel, said that the MFF agreement was an important step towards ensuring predictability in spending and promoting growth. She said it was also a crucial decision in terms of improving the EU's ability to tackle unemployment, particularly youth unemployment.
In the conclusions document, the European Summit “called for the rapid formal adoption of the MFF Regulation and the associated Interinstitutional Agreement. In this connection the European Council also welcomed the agreements reached on new programmes such as ERASMUS, COSME, Horizon 2020 and the Employment and Social Innovation programme. The European Council stressed the importance of: adopting before the end of the year the different EU programmes which support the achievement of the EUROPE 2020 Strategy; rapidly implementing the Structural Funds as well as the programmes for the competitiveness of enterprises and SMEs (COSME) and for research and innovation (Horizon 2020), which have a particular importance in the context of supporting SMEs; accelerating the implementation of the project bonds pilot phase. The Commission intends to present its assessment by the end of 2013”.
The heads of state managed to find a solution to the ultimatum made by the British prime minister, David Cameron, at the opening of the summit, who said he would only vote in favour of the budget if there was an absolute guarantee of continuation of the British rebate. He said it was absolutely essential for the agreement reached in February to be maintained and for the British rebate to be protected. London fears that the new way that the common agricultural policy (CAP) will be financed will slightly reduce the tax basis and therefore the size of the British rebate, but other countries, like France, are concerned that they would have to provide money to compensate if the British demand is satisfied.
The president of the European Council, Herman Van Rompuy, said that nothing will change for the British rebate, but technical measures would be required to achieve this. A British government source said they had received the assurances they needed and the British rebate is secure, just as all the EU leaders agreed four months ago.
The French president, Francois Hollande, said the size of the British rebate had been decided in the negotiations in February, but the way it is calculated may be adjusted. He said that this would not impact on France. A European source said that France and the other countries had been assured that they will receive compensation.
The German chancellor, Angela Merkel, said they had been able to reach agreement. Asked about the spat over the British rebate, she said they had been faced with the budget rebate question - the British rebate, the German rebate, a large number of rebates that generate debate, but she thought the important signal that evening was that they had overcome the disagreements and been able to reach agreement.
The British rebate dates back to 1984. The series of reforms to the CAP has resulted in a reduction in the British rebate and from 2014 onwards, some of the expenditure financed by the British will change category and appear under rural development (the second pillar). This will cost the British a lot because it will mean their rebate being reduced by more than €200 million a year. (LC/transl.fl)
At the end of the European Summit, the British prime minister, David Cameron, said: “There have also been discussions again about the British rebate that protects us from shouldering an unfair burden of EU spending. Frankly this should not have been necessary. In February, after repeated attempts to water down the rebate, we reached a clear deal that it would remain unchanged. Since then some have tried to question whether we should still get a rebate on agricultural spending in new member states. Now it sounds technical, but it would have cost £1.5 billion pounds sterling. So I have defeated this latest attempt to cut the rebate. We will get the rebate in the years ahead on the same basis than we do now. Let me say, the British rebate is fair, it is right and I will not allow changes that can undermine the rebate in any way”.
The Belgian prime minister, Elio Di Ruppo, said that there had been a deadlock after the presentation of a table on how the rebate was calculated, and sadly this had happened today and created a climate lacking in solidarity because whenever people talk about rebates, what they mean is not giving anything to other people, even if one is a rich country. (LC with EH and MD/transl.fl)