Brussels, 06/02/2004 (Agence Europe) - On Tuesday in Strasbourg, the European Commission is expected to adopt its communication, "Making Europe More Prosperous: the Political Agenda and Financial Framework of the Enlarged EU 2007-2013". It will be meeting up the day before in Brussels for final arbitration, especially for the maximum ceiling level for spending and the political emphasis to give on future decisions on own resources (setting up of a generalised correction mechanism and new resource).
Most Commissioners favour a spending ceiling of "1.24%" of Gross National Product (GNP) (which corresponds to the current ceiling for own resources), which is around EUR 154 in commitment appropriation. Uncertainties, however, remain with regard to the taking into account, within this limit, of the budgetisation of European Development funds (which represents 0.3% of GNP) and Solidarity Funds (0.01%). The Commission will have to distance itself for the appeal for austerity launched last December by six net contributor countries, which do not want the budget to exceed 1% of the enlarged EU's GNP. The Commission explains that the reduction in the budget to this level would necessitate a reduction in EU goals as framed by the Lisbon objectives, as well as in external aid, neighbourhood policy, cohesion and rural development.
With regard to own resources the Commission is expected to reach a decision on the need to set a figure for the generalised correction mechanism, which will set a ceiling for the level of net contribution to the percentage of GNP. The Commission will produce a more detailed proposal on more precise reflection with a view to creating a new resource. Some sources consider that the three options that have been retained in the initial draft communication (genuine VAT resource, energy tax and corporation tax on profits) could disappear from the final draft EUROPE 3 February 2004 p 12).
The Commission is also expected to confirm whether it intends to propose a new classification of the budget sections that reflect more accurately the political priorities of the EU at 27, namely: improved growth potential, implementation of Lisbon strategy, creation of "freedom, justice and security area" and the strengthening of EU influence in the world (see details for these sections in EUROPE 28 January p 8).
The first section entitled "sustainable development" will be divided into tows political areas:
"Competitiveness, employment and sustainable development": an envelope estimated at EUR 24 bn in 2013 (an increase of 212% compared to the loans planned for 2006) would allow the EU to strengthen technological research and development, promote enterprise competitiveness in the fully integrated single market, improve the quality of education and implement the European social agenda. The budget for research will be multiplied by two to reach EUR 13-14 bn by the end of this period. Also planned:
"Cohesion for growth and jobs": the budget in this section (which is mainly inspired by the current section 2 for structural action) will increase by 30% to reach around EUR 49 bn in 2013. 80% of spending will be used for convergence policy (aid to under developed regions and funding for the phasing out of former Member States), 15% will go to improving competitiveness and 5% will be dedicated to cross-border cooperation.
In the second section, "Management of natural resources", agricultural spending and rural development twill figure, as well as expenditure on environmental policy. This section will benefit from a budget of EUR 57 bn up to 2013.
Spending expected in the fourth section "EU as a Global Partner" will increase by 38% to reach EUR 10 bn in 2013, to which EUR 4.3 bn will be added for the same period in case of EDF budgetisation.
Administrative spending will finally be integrated into the different policies, but an "administration" section will cover spending on pensions and European schools.