Brussels, 12/01/2006 (Agence Europe) - The European Parliament in Strasbourg on 18 January is expected to reject the 16 December European Council's common position (deal) on the Financial Perspectives 2007-2013, kicking off negotiations between the EU institutions on how to improve the deal. The draft EP resolution by German Christian Democrat MEP Reimer Boge, whereby the deal is rejected, was adopted in the evening of 11 January by the members of the EP's Budgets Committee in special meeting.
Adopted by a show of hands, Boge's draft resolution rejects the European Council budget deal because it 'does not guarantee an EU budget enhancing prosperity, competitiveness, solidarity and cohesion.' The resolution notes that the Council's common position does not enable the EU to 'face new challenges'. The Budget Committee regrets that Member States have restricted themselves to financing 'traditional policies with redistributive character', disappointed that the Council gave priority to 'national interests' rather than to fostering the 'European dimension' of the EU budget. The draft resolution is disappointed that the Member States did not really get to grips with the important issue of own resources.
The President of the European Commission, Jose Manuel Barroso, the President of the European Parliament, Josep Borrell and the acting President of the European Council, Austrian Chancellor Wolfgang Schussel, will meet in Strasbourg on 18 January to agree on the procedure and timetable for the negotiations on the Financial Perspectives. The EP things it will take until the end of March before it can formally agree the Financial Perspectives 2007-2013. The EP's agreement is required before the EU's new budget can be formally adopted. (See EUROPE 9105 on comments by Chancellor Schussel and the President of the ECOFIN Council, Karl-Heinz Grasser).
The first three-way budget talks will be held on 23 January, when the European Parliament's Budgets Committee briefs the Austrian Presidency and the European Commission on the line the European Parliament will be taking in the negotiations. On 1 February, the European Commission will publish a draft net inter-institutional agreement, which may incorporate some of the European Parliament's demands for budget flexibility (a mechanism to allow easy release of extra funding in the event of economic crisis and natural disasters in the EU and beyond). The EP will be making an ambitious case, hoping to boost the EUR 9 bn deal agreed upon by heads of state in December 2005 to get back to the level of spending suggested by the Luxembourg Presidency in June last year. The Council will point out that there is little room for manoeuvre.
The EP plans to stand its ground when it comes to funding for programmes to boost competitiveness, growth and employment (the Lisbon Strategy and R&D), domestic security and foreign affairs. It is also calling for reform of the Financial Regulation to improve the way spending programmes are implemented and greater Member State responsibility in managing EU funds (the EP wants national authorities to certify that EU funding has been properly spent).
In a press release, Reimer Boge welcomes the fact the Budgets Committee following his recommendations virtually unanimously. He said MEP want to negotiate constructively with the Council and pointed out that the EP has to have its say on the Financial Perspectives (see Special Issue 9092 and EUROPE 9093). Boge says the talks should not only look at the scale of the funding agreed by the European Council (1.045% of GNP) but also spending priorities and the EP's codecision on all spending, including on foreign affairs.