Brussels, 05/12/2005 (Agence Europe) - On 5 December, the UK Presidency presented its first compromise proposal on the financial perspectives 2007-2013. It will be debated in Brussels on 7 December by the ministers for foreign affairs, meeting for a conclave. The European Council of 15 and 16 December will attempt to reach an agreement in Brussels.
The proposed compromise, which Jack Straw put forward at the end of the afternoon, provides for a budget of 846.75 billion EUR in commitment appropriations for the EU of 27 for the whole of the period, which represents 1.03% of gross national income (GNI) of the EU. In payment appropriations, the proposed budget will stand at 807.42 billion EUR, or 0.98% of EU GNI. The United Kingdom would increase its contribution by 8 billion EUR over the whole of the period, for the sake of fair funding of enlargement. The President of the European Commission, José Manuel Barroso, said that this compromise was unacceptable and unrealistic. The sums put forward are those of a budget for a "mini-Europe", but it is a strong Europe we need, said Mr Barroso in a press release.
The UK Presidency is reviewing the text presented last June by the Luxembourg presidency downwards by 24.7 6 billion EUR (commitment appropriations). This cut will affect all headings of the budget, except that of agricultural market expenditure and direct payments to farmers. The heading of rural development will also be cut by 7 billion EUR, and 2 billion EUR would be used to pay for the agricultural integration of Bulgaria and Romania. This would mean that the CAP would be preserved as is, as France and Ireland, amongst others, have called for, even though the Presidency plans to examine the possibility of reforming it in 2009.
Compared to the compromise in June, the Presidency is recommending a reduction of 8% in the structural actions in favour of the new Member States of the EU (which, according to Mr Straw, would receive 150 billion EUR). It proposes a total budget for the structural actions of 296.9 billion EUR, compared to 309.6 billion EUR in June. Furthermore, the British compromise provides for compensation of 2.8 billion EUR in favour of Spain for its losses in terms of the cohesion fund, which is the same amount as that proposed by the Luxembourg Presidency, and which was rejected by Spain.
On the revenue plank of the budget, London suggests a formula which would be equivalent to a reduction of 8 billion EUR in the British rebate over the period 2007-2013, which would, all the same, rise to 7 billion EUR around 2013. If no changes are made, it will stand at a level of 7.7 billion EUR.