Brussels, 06/04/2006 (Agence Europe) - Dalia Grybauskaite, European Commissioner for the budget gave a mixed initial political opinion on 6 April about the result of the final negotiation on financial perspectives for 2007-13. She described the financial framework as “minimalist” but stressed that she was very much counting on the clause for the mid-term review in 2008-09 for modernising the structure for EU budget spending. The Commission called on the two branches of the budgetary authority to take swift action to definitively ratify the financial framework and the new text for the inter-institutional agreement.
Following the agreement from the institutions on the most recent adjustments to the financial perspectives package, Ms Grybauskaite informed the press that “we got the best result possible. This does not mean that the final result is the best solution. It is the minimum for enabling an enlarged Union to develop”. She emphasised that this compromise would at least enable them to put an end to “any threat of EU political or financial paralysis” and to guarantee the future of enlargement thanks to the planned funding. The Commissioner added that multi-annual planning had been re-launched and the risk of a return to an annual budgetary procedure had been avoided. Grybauskaite also explained that the choice of the supplementary amounts decided on (research and education etc) was a sign that “we're going” in the right direction of “modernisation of the budget”.
In her replies to the press, Ms Grybauskaite explained that this budget was “minimalist. It is the minimum necessary for going ahead”. She did, nevertheless, declare, to be very hopeful, given the commitment from Member States during the December 2005 European Council to review the budget (review clause). The Commissioner pointed out, “they will examine the structure of the budget and decide on what spending to allow and also discuss own resources”. She also considered that “this budget is well off target for their ambitions” and demonstrated that, “budgetary negotiating formulas should be changed in the future”. On the subject of reform of the own resources system, she said that she wanted to avoid any talk of a new “European tax”. She explained that up till now, the EU budget depended on the decision of Finance Ministers or the Treasury of Member States, “without EU citizens having a say”. The Commission will therefore propose “several options” on modalities for funding the future European budget, “without excluding the possibility of using new instruments”, concluded Commissioner Grybauskaite.
On the details of the 4 April agreement (EUROPE 9168), she confirmed that the three institutions had agreed to release € 4 billion extra in new money, distributed to the priorities outlined (Erasmus, TEN, research etc) and 2.5 billion more from the EIB guarantee fund. Ms Grybauskaite explained in detail that out of this € 4 billion, € 2 billion comes from redistributed funding: € 1.5 billion from the emergency aid reserve, which was now no longer part of the financial framework, € 500 million out of civil servants' pensions that had been re-directed to other priorities. The net increase in the financial framework decided on by the European Council in December is therefore only € 2 billion. The total amount of expenditure for 2007-13 for the EU-27 rises to € 864.36 billion. The Commission also highlighted the other results linked to the financial framework:
Inter-institutional Agreement: the EP will actively participate in the budget review process (income and spending) beginning in 2008-09 with the publication of the Commission's report. Ms Grybauskaite said that the EP would be “closely involved” in the budgetary review process, “We will take Parliament's contributions into consideration, particularly during the conference with national Parliamentarians who will debate improvements to the own resources system”. However, the Commissioner said that in compliance with legislation, the final decision will be taken at the European Council by unanimity.
The financial framework includes the creation of a Globalisation Adjustment Fund (€ 500 million a year, funded outside of the financial framework). The Commissioner confirmed that the maximum amount for the flexibility instrument remained € 200 million a year but that funding that was not used in this mechanism could be postponed and used up to two years after being released. The flexibility instrument could also be used over several years for the same category of spending.
Improvement in budget implementation: the most important factor involves the commitment by Member States to improve controls of Community funding. According to the Commissioner, Member States will have to designate a body responsible for fund certification and take into account the different political structures in Member States.