Brussels, 19/05/2005 (Agence Europe) - On Sunday in Brussels EU foreign affairs ministers will be in Brussels for a conclave to discuss financial perspectives for 2007-13. They will be examining the new version of the Luxembourg presidency's “negotiation document” dated 19 May, which suggests a sharp downward revision of the European Commission's initial proposals. The presidency is suggesting a restriction of the payment appropriations to between 1.06%-1.09% of Gross National Income (GNI) of the EU for seven year average, which corresponds to a compromise between the position of the six Member States (Germany, France, United Kingdom, Netherlands, Sweden and Austria) which demanded a 1% limit of GNI l and the Commission's proposal of 1.24%. The presidency intends to get to this figure by sharply reducing the proposals. For the “income” section of the budget, Luxembourg confirmed its wish to challenge the United Kingdom's budget rebate it has enjoyed for 20 years and to correct the situation of the following countries: Germany, Netherlands and Sweden, who pay more into the budget than they receive. The Commission swiftly reacted to the “disappointing” proposals, declaring, “we do not want a Europe on the cheap”. President Barroso will attend the meeting of foreign affairs ministers and will therefore have the chance to explain what points are negative in the new negotiation document version. The main elements are as follows:
Competitiveness for growth and jobs (research and technological development, Trans-European networks, education and training etc): the presidency text suggests an increase of between 8 and 11% of payment appropriations for 2006, whereas the Commission is proposing +194% (counting the growth adjustment funds which have not been kept by the Council). This will result in a sharp reduction in funds for research and TENs.
Cohesion for growth and jobs (cohesion policy): the presidency is suggesting how of focus structural and cohesion funds on the least developed regions and Member States, while including a satisfactory transition system, particularly for those contributing most to the effort. The presidency is proposing an overall contribution of between 0.37 and 0.38% of Gross National Income (GNI) of the EU at 27 Member States (as opposed to the Commission's 0.41%). The total envelope will be shared out as follows: 82% for the convergence objective (including Cohesion funds and aid for regions and countries in undergoing the gradual phase of aid suppression, 15% for the “regional competitiveness and jobs” objective (including funding for regions in the phase of gradual inclusion of aid of 3% for territorial cooperation). The Commission is planning on 78% for convergence, 17% for regional competitiveness and jobs and 4% for territorial cooperation. To take into account the capacity of Member States to use these resources, cohesion fund transfers cannot exceed 4% of GNI in any Member State destined for funding. The presidency is planning to provide specific treatment of remote regions and certain poorer regions of Austria, Finland and Sweden, which could benefit from additional aid (20 euros per inhabitant a year) under the European Regional Development Fund (ERDF-. The compromise includes a transition system for Member States and regions whose aid is being gradually eliminated or being set up. Gradual elimination (over two years) of the Cohesion Funds for Spain was maintained.
Preservation and management of natural resources (agriculture, rural development, fisheries and environment): the agreement at the summit of October 2002 on agricultural market spending is confirmed. The compromise includes additional sums for integrating Romania and Bulgaria into the Common Agricultural Policy. The envelope for fishing is revised slightly downwards.
For the other sections (freedom, security, and justice and external actions), the presidency is planning to revise the increased proposed by the Commission downwards.
Own resources: the presidency is suggesting that the British rebate is set for 2007 depending on the average of recent years and that it gradually decreases over the next few years. The document suggests “specific measures” for the Netherlands, Germany and Sweden for reducing the charges for these main net Union contributors.