Brussels, 17/11/2014 (Agence Europe) - On Saturday 15 November, the EU member states succeeded in reaching an agreement on the Council position on the amending budgets for 2014 and on the draft budget for 2015. Their agreement followed long hours of negotiation within the Committee of permanent representatives of the members states to the EU (Coreper).
On Friday 14 November, the Ecofin Council - meeting in budget format - did not manage to define its position on the package (amending budgets for 2014, draft budget for 2015, proposal on own resources). It stated on Friday evening that discussions would continue over the weekend. On Saturday 15 November, Coreper met for the whole day in order to define a common position. This was finalised and agreed in Coreper during the morning of Monday 17 November.
Race against the clock. At the time of EUROPE going to press, the Council was submitting its common position (in conciliation) on the budget package to the European Parliament at 5.00pm. The conciliation on the 2015 budget expires at midnight on Monday 17 November. If the conciliation effort does not come to a successful conclusion within the deadline, the European Commission is required to present a new draft budget for 2015.
Invoice payment. The draft amending budget no. 3 to the general 2014 budget aims to increase the payments in the EU 2014 budget by €4.7 billion so as to cover the pending invoices. The Commission has proposed financing this additional sum by mobilising the contingency margin up to €4 billion. The position the Council submits in conciliation provides for the use of this margin up to €2.01 billion. The Parliament risks not accepting this plan as it defends the Commission's initial proposal. The Council doubtless has a small margin for negotiation.
Own resources. The draft amending budget no. 6 for 2014 covers writing a sum of €9.5 billion into the budget as a result of reviewing the forecasts of EU resources and it also covers the corresponding decrease of GNI (Gross National Income) contributions. In addition, it integrates an increase in traditional own resources, reducing the contributions of the EU member states to the EU budget by a total of €420 million. Alongside this, the Commission has made a proposal enabling the member states to spread the payment of the additional budget required of them until 1 September 2015.
In the Council position it is stated that the Commission will assess to what extent there have been repayments at 1 December. The Commission will make a refund proposal. This issue is particularly important for France, which would like a refund in 2015. The Commission will be able to assess how much has been paid and refunded by the EU countries and it is only then that it will make a refund proposal to the debtor member states. If just the UK does not repay the sum due at 1 December, there should be a sum of €6.5 billon which can be shared among the countries that should obtain a refund on their contribution.
Agriculture. In its amending letter 1 for 2015, the Commission had proposed redeploying €397 billion in agricultural payments to respond to needs in other areas. It proposed mobilising €344.3 million of the €433 million that makes up the reserve for crises in the agricultural sector in order to finance measures to diminish the effects of the Russian embargo on EU agricultural products. Indeed, the Commission found the additional money and notes a lower use (up to €110 million) of certain measures linked to the Russian embargo (as in the area of aid for perishable fruit and vegetables).
European Parliament calls for roadmap on unpaid invoices. In the view of the Parliament, the most urgent invoices (€4.7 billion as provided for in the draft amending budget no. 6 for 2014) should be paid using the money collected from competition fines (€5 billion). This sum of €5 billion should not be redistributed to the EU member states, in the Parliament's opinion. The snowballing of the debts should be stopped, according to the Parliament's negotiators. If the €4.7 billion is not paid, the EU will start 2015 with an amount of unpaid invoices to the tune of €26-28 billion, the negotiating MEPs state - Jean Arthuis (ALDE, France), the chair of the Parliament's budgets committee, and the rapporteurs, Eider Gardiazabal Rubial (S&D, Spain), Monika Hohlmeier (EPP, Germany) and Gérard Deprez (ALDE, Belgium). The Parliament supports a roadmap being drawn up with a precise timetable for reducing the unpaid invoices. It would like a long term solution to this. (LC)