Brussels, 02/10/2014 (Agence Europe) - The members of the budget committee of the European Parliament can be sure of one thing. If she is confirmed in the post of budget commissioner, Kristalina Georgieva, who will also be vice-president of the Commission, will have her work cut out to try to resolve the problem of the payment appropriations. But will she succeed? Some could accuse the current commissioner for humanitarian aid, who has done excellent work in this position, of lacking in experience and precision in so complicated and sensitive an area as the budget of the EU. Among the other priorities and responsibilities which await Georgieva feature the mid-term review (in 2016) of the multi-annual financial framework (MAFF), the draft 2015 budget of the EU, the EU's own resources, the €300 billion investment plan announced by President Jean-Claude Juncker and a zero-tolerance approach to fraud.
Georgieva hopes to use the EU budget “wisely”, she said in her introductory speech. The MAFF 2014-2020 of €1000 billion has a direct impact on the lives of the citizens, she said.
Payment appropriations problem. The problem of the invoices still to be settled as regards payment appropriations must be resolved, said the commissioner-designate. This responsibility is of concern to the Commission (see other article on Barosso's letter). Georgieva said that from her very first day on the job, she would fight to conclude the negotiations on the amending budgets 2014 and the draft for 2015, in order to “melt the snowball of the unpaid invoices”. Otherwise, we will end up delaying programmes and having to pay interest, which would be a massive misuse of the taxpayers' money, she stressed. She feels that the problem can be resolved by applying flexibility. Answering questions put by José Manuel Fernandes (EPP, Spain), amongst others, Georgieva stressed that, first of all, the problem of the unpaid invoices needs to be resolved. This means taking action through the 2014 amending budgets and making use of the margins available. “We need to stabilise the situation. This is not all, we have to be cautious in the management and implementation of projects”. In response to criticism from Marco Zanni (Movimento 5 Stelle), Georgieva said that, for future payments, “we have started serious project planning work, to ensure that we are in a better position to check invoices and pay them”. We are in a suspension of payments situation, said Alain Lamassoure (EPP, France). The only money available, he said, is being used to pay for past things. Gerard Deprez (ALDE, Belgium) argued for urgent adoption of “a strategic plan to reabsorb the payment deficit as soon as possible”.
Own resources. This payment appropriations problem is linked to the change in how the budget is financed. It is no longer financed through independent resources, but by contributions from the national budgets. Lamassoure pointed out that the Parliament has made the reform of the system of own resources a key point in the agreement on the MAFF. The high-level group chaired by Mario Monti is working on proposals. The commissioner-designate expressed hopes that the working group would manage to make “credible and politically viable proposals”. The current situation is “unhealthy”, she said, because the share of real own resources has fallen, whilst the share of contributions based on GNI has risen. “This makes for tense negotiations between the countries”, she reiterated.
Mid-term review. The future commissioner argued that the budget should be designed in such a way as to create more growth and competitiveness and meet new challenges. There should also be discussions about the term of the next MAFF, to bring it into line with the cycle of the EU institutions (five years). We will have to see “how we can adjust this framework on the basis of events and see the execution of the MAFF. We will look at the state of the economy and the priorities, I am taking this task very seriously”, the commissioner-designate summed up.
€300 billion plan. Eider Gardiazabal Rubial (S&D, Spain) and Isabelle Thomas (S&D, France) raised this investment plan. “For my part, I am going to ensure that the European budget guarantees more investments and provides a 'leveraging effect'. We need instruments to encourage investors to come to the rescue of SMEs”, said the future commissioner (one euro invested should lead to 5 euro of investment). “This plan needs to be given over to public investment projects and we must unblock job creation capacity, particularly in the field of digital”, Georgieva added. We will have to be extremely vigilant as regards innovative financial instruments, she said. “It is said that between 20 billion and 40 billion could go to the European Investment Fund of the EIB”, said Thomas.
Fraud. In the budgetary discharge exercise, we have to end up with fewer errors, said Georgieva. Fraud tarnishes European projects and we need to create a European public prosecutor, she stressed.
Administrative expenditure. On EU administrative staff, Georgieva spoke in favour of developing a management policy based on talent and bringing together diversity. “The President has asked me to ensure that 40% of management positions are held by women by the end of my term in office”. She acknowledged the need to explore all options to find savings. (LC)