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Europe Daily Bulletin No. 9033
Contents Publication in full By article 11 / 41
GENERAL NEWS / (eu) eu/budget

Commission calls for reflection on specific budget effects of British rebate

Brussels, 22/09/2005 (Agence Europe) - Budget Commissioner, Dalia Grybauskaité highlighted, during the presentation of the European Commission report on EU spending distribution by Member States in 2004, of the specific budget effects of the British rebate it has been receiving since 1984. With a graph to help her she pointed out that 21 Member States out of 25 were paying a budget contribution in keeping with their national wealth but that the United Kingdom was an exception to the rule (whose contribution is proportionately much lower than its national wealth). Three other countries (France, Italy and Spain) which are funding more than 50% of the British rebate (and which are in the reverse situation to that of the United Kingdom). Grybauskaité explained that Italy was contributing as much a 23%of the British rebate, France 20% and Spain 14%. She deemed this kind of comparison very interesting while leaving it up to everyone concerned to draw their own conclusions.

The 2004 report on the distribution of spending in the EU does not include any surprises. The main net contributors to the EU budget in relative terms are in relative terms: Netherlands (-0.44% of Gross Domestic Product, a shortfall of 2 billion euros), Sweden (-0.38% of GNP) Germany (-0.33%).
Ms Grybauskaité also noted: - the best execution of spending since 2000 (98.4% in 2004, as opposed to 96.6% in 2003, 87% in 2002, 85.9% in 2001 and 89.9% in 2000); - a marked reduction on spending on agriculture (43.5% of the total in 2004, as opposed to 49% in 2003); - respect for commitments to the ten new Member States (a positive budgetary balance). She explained that funding to new Member States as part of structural actions (Structural funds and other Community initiatives) would show clearly in 2005.

As in 2003, the Commission document shows that Spain was in absolute terms the main beneficiary of EU spending in 2004, with 16.35 billion euros (17.81% of total EU spending), way above France (12.94 bn, 14.09%), Germany (11.74 bn, 12.79%) and Italy (10.36 bn, 11.29%). In 2003, Italy was in third position as it received relatively high payments in the structural funds. The United Kingdom is next (7.12 bn, 7.76%), Greece (5.80 bn, 6.32%), Belgium (4.93 bn, 5.38%) Portugal (4.41 bn, 4.81%). Ireland is in ninth place as o, 2003, Poland is in tenth position (2.71 bn, 2.96%). In percentage of gross domestic product, the main beneficiary is Greece (3.52%), followed by Portugal (3.35%),Lithuania, Estonia and Latvia, then Ireland and Spain. Luxembourg is way ahead in terms of significant amounts of administrative funding (for buildings).

As was the case previously, France is the main beneficiary of agricultural spending (9.43 bn euros, 21.6% of the total), ahead of Spain (6.34 bn, 14.6%), Germany (6.06 bn) and Italy (5.04 bn). In 2002, Germany was in second position ahead of Spain, mainly because of direct aid paid in advance to farmers affected by floods. Next came the United Kingdom, Greece, Ireland, Netherlands, Denmark, Austria, Belgium, Finland, Sweden and Portugal. Poland was in fifteenth position.

Spain is by far the main beneficiary of structural actions, with 28.2% of funds, as in 2003, 2002 and 2001. It is followed by Germany (13.6%), Italy (13.2%), Portugal (10.2%), Greece (8.3%) and France (7.0%). The United Kingdom is in seventh place, as in 2003, and Poland in eighth position. For internal policies, Germany (14.7% of the total) was the main beneficiary in 2004, as in 2003 and 2002, ahead of France, Belgium, United Kingdom and Italy. Belgium and Luxembourg benefited respectively of around 56% and 19% of administrative spending in the EU in 2004. France is in third position, with around 7%. In total, 3.21 bn was paid to the ten new Member States in 2004 under compensation and pre-accession strategy. The main beneficiary was by far Poland (42.9 %), followed by the Czech Republic (16.3 %) and Hungary (10.7 %).

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