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Europe Daily Bulletin No. 8793
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GENERAL NEWS / (eu) eu/barroso commission/budget

Dalia Grybauskaité recalls that new Commission can change financial framework proposals

Brussels, 24/09/2004 (Agence Europe) - Commissioner-designate for Financial Programming and Budget Dalia Grybauskaité considers the current proposals on Financial Perspectives for 2007-2013 "are a sound basis" to allow an agreement on the issue "by end 2005". She recalls, however, that the incoming Commission "is free to make modified proposals if it deems it necessary, notably in the light of ongoing discussions with the European Parliament and Council". These explanations were given in her answers to the questionnaire from members of the EP Committee on Budgets before her hearing scheduled for 28 September.

On the subject of proposals on the "incoming recipts" chapter of the budget (creation of a new source of financing and correction of budgetary imbalances), the former Lithuanian Finance Minister said she was convinced of the need to simplify European budget financing to make it sufficiently transparent so that it may be understood by others than those in the restricted circle of experts. On the proposal for phasing out the British rebate, she considers that the cost of enlargement must be fairly shared and that excessive budgetary burdens in relation to the relative prosperity of any Member State "risks undermining unity of purpose within the Union". "I therefore support the objective of finding a solution to this situation", she writes in her answers.

Ms Grybauskaité delivers a mitigated judgement about the provisions of the European Constitution concerning the future financial framework. While welcoming the introduction of a "multi-annual financial framework", she expresses disappointment that unanimity has been chosen for adoption of this framework by Member States. In her view, this rule could hamper the ambitious agreements in the enlarged Union. Ms Grybauskaité considers, moreover, that the changes made to budgetary procedure mark a positive evolution toward simplification. She mainly cites abolition of the distinction between compulsory and non-compulsory expenditure and the fact that it is the European Commission presenting the draft budget. In her view, however, there would have been greater simplification if the Parliament had been called upon to make the initial decision, with the amended draft budget then being submitted to Council.

Furthermore, pending formal ratification by the European Commission, the Commissioner-designate considers the Commission should, in its actions and proposals, take into account the prospect of the new Constitution and reject the spirit of the Constitution each time it is possible and useful to do so. In areas where innovations made by the Constitution demand implementation measures, the Commission can, she says, begin preparing proposals. According to Ms Grybauskaité, the Commission may also ensure that European citizens are clearly and objectively informed of the provisions of the Constitution, naturally abstaining from any misplaced interference in national debates.

Ms Grybauskaité, who entered the Commission on 1 April this year, reminds MEPs that she holds no function in the business or finance world "or any other commitment likely to be incompatible with the post of Commissioner". She is not affiliated to any political party and does not hold a political post. Since 1991, her career in Lithuania has been closely linked to European affairs: first of all as Lithuanian minister for international economic relations, then at the Foreign Ministry before becoming Finance Minister from 2001 to 2004, which is an "essential attribute for being Budget Commissioner", she said. She specifies that, as Finance Minister, she was closely involved in Lithuania's expedited economic and structural reform process, whose effectiveness and quality implementation are well-known. She also has experience as a diplomat and negotiator, having been main negotiator for the Free Trade Agreement at the IMF and the World Bank.

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