Strasbourg, 18/01/2006 (Agence Europe) - Adopting a resolution from the Budget Committee on 18 January (541 to 56 with 76 abstentions), the European Parliament rejected the European Council's deal on the Financial Perspectives 2007-2013 (see EUROPE 9111 and 9108), confirming its desire to negotiate a better budget deal with the other EU institutions, improving on the deal reached by heads of state after hours of tough bargaining on 16 December 2005.
The EP says the European Council deal 'does not guarantee an EU budget enhancing prosperity, competitiveness, solidarity, cohesion and security in future, in compliance with policies already decided by the Council itself… and does not provide for a sufficient and detailed flexibility mechanism… or sufficient accompanying measures for example to ensure better implementation and control of expenditure of funds in Member States.' The EP demands greater involvement in the process of revising the EU budget (income and expenditure), due to start in 2008 with the publication of a report by the European Commission.
In the one amendment adopted by the plenary, the EP 'notes that the conclusion of the European Council focus on traditional policies which are administered by Member States rather than putting emphasis on policies enabling the Union to face new challenges and to develop European added value for citizens; deplores in this context the unacceptable reduction in commitments for competitiveness, growth and employment, despite the emphasis given by all the EU institutions to the Lisbon strategy, and the cuts for citizenship, freedom, security and justice and external actions; deplores, moreover, the fact that Member States fight to preserve their national interests rather than fostering the European dimension and have been unable to address the major issue of reforming the own resources system.'
The EP concludes by saying it is 'willing to enter into constructive negotiations with the Council on the basis of respective positions provided the Austrian Presidency is entrusted a real negotiating mandate. Is determined to defend the quantitative, structural and qualitative elements of its negotiating position and to enhance the European dimension of agricultural, internal and external policies.' The European Council reached a deal on 16 December agreeing on a total budget of EUR 862.363 bn in spending, equivalent to 1.045% of EU27 GNI (gross national income). On 8 June 2005, the European Parliament called for a budget of EUR 974.837 bn, the equivalent of 1.18% of EU27 GNI.
To facilitate the talks between the Council and the EP over endorsement of the EU's future budget (the Financial Perspectives), the European Commission will be publishing a new draft inter-institutional agreement on 1 February. The President of the European Commission, Jose Manuel Barroso, said the draft agreement will cover three main areas, namely greater EU budget flexibility and resource 'reactivity', creating a Globalisation Adjustment Fund, and a revision clause. The Commission feels the new flexibility will be vital if agreement is to be struck between the institutions, Barroso told the plenary.