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Image header Agence Europe
Europe Daily Bulletin No. 11255
Contents Publication in full By article 11 / 29
INSTITUTIONAL / (ae) budget

Mario Monti tests resistance at Council over own resources

Brussels, 17/02/2015 (Agence Europe) - Mario Monti, who chairs the high level group on own resources, attempted to obtain a response on Tuesday 17 February from EU finance ministers to the very sensitive question of reforming the EU's own resources system.

After addressing MEPs, who have often proved supporters of genuine reform for providing the EU with real own resources (see EUROPE 11247), Mario Monti presented the Ecofin Council with the broad guidelines of the first report (published at the end of December 2014) from the high level group on own resources.

The thrust of Mario Monti's contribution was that there have been calls for structural reforms at national level and that certain structural reforms are also necessary at a European level. He pointed out that the very difficult debates last year on the 2015 budget related to the revenue section in the EU budget.

The former president of the Council in Italy between 2011-2013 pointed out that in 2013, 83% of budget revenue consisted of direct contributions from national budgets, “which explains a lot of misunderstandings”.

The first report from the high level group describes the efforts made and the criteria to develop a solid own resources system. He referred to several criteria: fairness, efficiency, stability, transparency and subsidiarity etc.

He also said that they should not examine own resources without taking into account the broader context.

Minister Wolfgang Schäuble from Germany spoke of an excellent report and made two recommendations: 1) because, ultimately, it is necessary to convince national MPs, it will also be appropriate to take into account national level perspectives; 2) the more we work on spending, the more convincing we will be on action regarding revenue.

The British minister supported his German counterpart and highlighted the need to verify how money is spent. He pointed out that on the question of own resources, the British position was well known (don't touch the British rebate) and suggested that nothing should be changed (unanimity is required).

France basically called for budget considerations in the eurozone to be taken into account.

Poland highlighted the necessity of distinguishing discussions from spending from those on revenue.

As Germany and the United Kingdom had referred to the spending section in the EU budget, Mario Monti asked whether this should be interpreted as an encouragement to expand the mandate of the high level group on own resources. The British minister replied, “Looking at how our money is spent is useful”. The Latvian Presidency of the Council said that it would prefer the high level group to concentrate on its current mandate, whilst acknowledging that this group was “independent”. (Lionel Changeur)

Contents

ECONOMY - FINANCE - BUSINESS
INSTITUTIONAL
SECTORAL POLICIES
EXTERNAL ACTION