Brussels, 17/06/2004 (Agence Europe) - Heads of State and governments from Member States of the EU will adopt on Friday in Brussels, neutral conclusions and procedure for continuing work on the next financial perspectives (2007-13). The European Council will just take note of the report by the Irish presidency, in which divergences between Member States are confirmed on the subject of the budget spending, future regional policy and changes to the own resource system (EUROPE 27 May 2004 p 8). EU leaders have suggested that the objective remains that of reaching a political agreement on the different legislative proposals at the European Council in June 2005 under the Luxembourg presidency.
The presidency report synthesises results from the debates which took place three months ago at the Committee of Permanent Representatives of the EU Member States (Coreper). In its conclusions, the European Council is expected to underline that the presidency document: represents a "useful contribution" for clarifying the subjects and the positions of the delegations; it allows the Commission to get feedback on its communication of 10 February on the issue in view of preparing the legislative proposals.
The Dutch presidency is invited to continue work in light of the problems identified in the document. The European Council underlines that the work on financial perspectives should take into account the positions of Member States and "keep to the spirit" of the planned timetable for the "multiannual strategic programme" (in other words, that it tries to get a political agreement in June 2005: Editor's note).
The presidency report (which never quotes the name of a Member State) confirms the hard-line position of six Member States (Germany, France, United Kingdom, Austria, Netherlands, Sweden), which is calling for the EU's level of budget spending to remain below 1% of Gross National Product (GNP). The presidency explains that these countries consider that the Commission communication "does not constitute an appropriate basis for legislative proposals" and they "do not accept the ceiling proposed by the Commission" (commitment appropriations representing an average of 1.26% of GNP in the EU of 27 during the 7 year period and 1.14% of GNP for payment appropriations). The report adds that certain delegations (including Sweden) have indicated that the current ceiling for own resources, set at 1.24% of GNP, was at "risk of being superseded if the level planned for expenditure was maintained and the average rate of growth was less than the 2.3% forecast by the Commission". The detailed analysis demonstrates that the level of funding planned for research and development in section 1a ("competitiveness for growth and jobs") divides Member States on the question of the quality of their university and research infrastructure). Most countries are hoping for an increase in funding for Trans-European networks. On regional policy (section 1b on "cohesion") the report confirms Spain, Portugal and Greece's desire to keep to the 0.41% GNP rate used for cohesion policy, a demand that is opposed by budget "net contributor" countries.