Brussels, 22/11/2000 (Agence Europe) - Aid to the Western Balkans will, on Thursday afternoon, be the dominant theme of the difficult consultation between the European Parliament and Council on the elaboration of the Budget 2001. Consultation will be followed by the second reading of the draft Budget 2001 by the Council on Thursday evening, with extensions during the night or into Friday morning. A compromise could perhaps take shape on the use of the flexibility instrument for the Balkans, but positions are still far apart. The Community contribution for the financing of BSE screening tests should also be a key, though somewhat controversial, point in Council consultation.
There is still divergence over aid to the Balkans - and the related question of aid to the Mediterranean - regarding the amount as well as the financing arrangements. Coreper confirmed the Council's position on Wednesday: 684 million for the Balkans, of which 200 million will be for Serbia and 230 million for Kosovo. The Commission would like an additional 200-250 million for the Balkans as a whole, and the European Parliament is expected to follow suit. During its first reading of the draft budget 2001, the EP had voted for 684 million for the Balkans, including 60 million for Serbia, and would now like to fix aid to Serbia at around 240 million. The Council continues to refuse revision of the financial perspectives to finance an increase in credits as foreseen.
A compromise could take shape on the use of the flexibility instrument to this end, if several conditions are fulfilled. The flexibility instrument, we recall, has a maximum of EUR 200 million, an amount which is not taken into account in calculating any one category of spending, which has the advantage of being able to exceed the expenditure ceiling for external policy without officially revising it. The Council refuses to use this instrument to increase the MEDA programme's budget (the Commission proposed EUR 850 million, a figure also voted in first reading by the EP, but the Council insists on a reduction of 150 million). Nonetheless, the French Council Presidency recognises it would be "more open" to accepting it for aid to the Balkans. The Council, however, still has to move forward in a way that is acceptable for both the other Institutions (that is, sufficient increase in the allocation for the Balkans). And the Commission will have to decide to take a clear stance: propose the flexibility instrument and insist on its adoption (finally acknowledging that it renounces revision of the financial perspectives), and reduce the sum for the MEDA programme. Finally, the EP, also, will have to agree to follow the same line. EUROPE recalls that the European Parliament has the last word on external aid, during its second reading of the budget. But the flexibility instrument can only be used by common accord between the EP and Council, on a Commission proposal.
The mad cow crisis was also part of the budgetary discussions. Coreper said this morning that it supported provision by the EU of EUR 60 million for BSE testing decided by the Agriculture Council Monday night. This figure was calculated on the basis of an EU contribution of 15 euros per test, for tests which cost 30 euros. The EP has already indicated it believes this to be a priority. The figure of 50-100 million was mentioned on the EP side, which assures an agreement is in sight. As it is a matter of compulsory spending, for which the Council decides as a last resort, there must be agreement during consultation.
Other subjects of discussion for the Council include: the employment initiative for which an agreement is expected, and credit payments, that the Council hopes to reduce. Their reduction compared to the Parliament's requests will be one of the aspects of the overall negotiation on the Budget 2001.