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Europe Daily Bulletin No. 11156
EUROPEAN PARLIAMENT PLENARY / (ae) budget

Council budget cuts provoke outrage

Brussels, 16/09/2014 (Agence Europe) - During a plenary debate on Tuesday 16 September, MEPs criticised the position of the Council of the EU on the EU's draft budget for 2015. They protested against the reductions in payment appropriations decided by member states when the EU is short of funds to pay invoices.

Enrico Zanetti, Italian Secretary of State for Economic Affairs, presented the Council's position on the EU draft budget for 2015 (see EUROPE 11147), providing for a total of €140.00 billion in payments (+3.3% compared to 2014) and €145.08 billion in commitments (+1.7%). Compared to the amounts proposed by the Commission, the Council has reduced payments by €2.1 billion and commitments by €522 million. Zanetti stressed that “savings are needed on certain credit lines so that unexpected events can be tackled”. He argued that the reductions were based on an evaluation of the programmes.

Jacek Dominik, European Commissioner for the Budget, pointed out that the 2014 budget, if adopted with all the amendments proposed by the Commission, will remain €4 billion below 2013 payments level. The 2015 budget will remain €2 billion less than the budget from last year if it is adopted as proposed by the Commission. The commissioner said: “We are very far from the spending levels we were used to”. Dominik said that he was disappointed by the Council decisions on the 2015 draft budget and emphasised that “what the Commission requested for 2015 will not be enough if we respect our commitments for 2014”. He called on the Council to agree to the amending budgets proposed for 2014 and asserted: “Given the shortage of payment appropriations for 2014, the Commission can only regret the Council's position on the draft budget 2015”.

Monika Hohlmeier (EPP, Germany), the rapporteur on the 2015 budget stated: “What the Council is doing leaves me speechless”. She cannot understand why the Council reduced spending on research, SMEs and humanitarian aid, and warned that the EP would have to tighten its belt, despite the additional spending required (new status).

Eider Gardiazabal Rubial (S&D, Spain), the other rapporteur, said that funding in certain sectors (research, infrastructure and transport) needed to be strengthened, yet the Council had done the opposite. She said that there is a significant disparity between the respective positions of the Council and EP and that the reductions carried out by the Council “are not viable”.

Jean Arthuis (ALDE, France), the chair of the EP budgets committee argued for a “fighting budget”. He called for “specific and maximum flexibility in the 2015 budget”. He also sounded the alarm with regard to the growing disparity between commitment and payment appropriations and deplored the fact that “the remaining amounts to be paid are soaring, and unpaid bills are increasing” and all this, despite the EU treaties prohibiting getting into debt. (LC)

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