Brussels, 08/09/2005 (Agence Europe) - On Tuesday in Strasbourg, the members of the European Parliament and the European Commission voiced firm objection to the cuts in funding for EU research and external actions made on 15 July by Member States during the first reading of the draft budget 2006. The next stages in budgetary procedure for 2006 are: - the EP will vote at first reading on 27 October, in Strasbourg (in the light of the results of work on 4, 5 and 6 October by the parliamentary committee on budgets) and the second reading in Council will be held on 24 November.
Speaking on behalf of the British EU Council Presidency, Ivan Lewis, Economic Secretary at the Treasury, was there to present the results of the first Council reading of the draft budget 2006 to the EP (EUROPE 8992). He recalled the meagre results of the consultation meeting between the Council and the EP delegation (EU contribution for rebuilding countries of Asia whose coasts were devastated by the tsunami, mobilisation in 2005 of the Solidarity Fund for Slovakia which was struck by fierce storms, and review of the 2006 financial perspectives to allow modulation of direct aid). According to Mr Lewis, the results of the consultation are a “very promising beginning to our relationship”. He was confident that, by conserving constructive and permanent dialogue, “we will be able to find an appropriate agreement on a balanced and satisfactory budget for 2006”. He then went on to list the principles that have guided the Council in its work: budgetary discipline, respect of the ceilings for financial perspectives, and limited and controlled growth of payment appropriations with strict financial management. Mr Lewis recalled the constraints that weigh on the national budgets of Member States and the need to justify public spending in the eyes of the citizens. He mentioned the increases decided by the Council, mainly in the field of research (+12% compared to the 2005 budget) and structural actions (+9.8%), before giving details of the results heading by heading. He above all specified that the Council had agreed by an “overwhelming majority” the new posts requested by the Commission for EU enlargement and new tasks. Lewis admitted that a slight reduction had been applied to take into account the delays in recruitment for posts during previous years. The British Presidency concluded by saying that the draft budget meets various EU priorities.
Budget Commissioner Dalia Grybauskaïté criticised the cuts by Council in the following areas: - internal policy (including research): according to the Commissioner, the cuts in funding are not justified and cannot be backed by the Commission as the amounts proposed initially correspond to projects already underway; - external policies: reductions will create at least three serious problems, Ms Grybauskaïté says: - they go against the decision of the General Affairs Council, especially when it comes to aid for rebuilding Asia and the new commitments under development aid; - they place new actions in danger such as aid for the process of withdrawal from Gaza, - and they do not allow account to be taken of the new fisheries agreement signed with Morocco. The Commissioner pointed out that 90% of the personnel recruitment objectives had been achieved by 31 July 2005 and she therefore considers that the cuts decided by the Council resulted from a “misunderstanding”.
EP Rapporteur Gianni Pittella (PES, Italy) considered as “striking” the difference between the fabulous declarations by Tony Blair and the harsh reality of the figures. The chairman of the committee on budgets, Janusz Lewandowski (EPP-ED, Poland) deplored the “selective cuts” operated by Council, especially in credit lines linked to the Lisbon strategy. On the subject of cuts for external policy, Mr Pittella said redeployment of funding is not sufficient and that it would therefore be necessary to set the flexibility instrument in motion (allowing a maximum of EUR 200 million to be made available over and above the ceilings set in the financial perspectives). This opinion is shared by many MEPs, including Véronique De Keyser (PES, Belgium), whose report was on behalf of the committee on foreign affairs.
Criticism by MEPs was all the more virulent as this is the last budget before the next financial perspectives (2007-2013).