Brussels, 13/12/2006 (Agence Europe) - The European Parliament is expected to adopt the EU budget for 2007 on Thursday 14 December, despite the fact that many MEPs feel the financial accommodation reached only partially meets their aspirations (see EUROPE 9322 on the budgets committee recommendations and 9317 on the success of the inter-institutional negotiations). A few hours before the plenary session debate on 12 December, the rumour running around the corridors of the EP was that the Council intended to review the compromise on updating the financial regulation arrangements (see EUROPE 9318). Some MEPs threatened to vote against the budget, before finally being reassured by the Finnish Presidency.
During the budget debate, the rapporteur on the general EU budget, British Conservative MEP James Elles, welcomed the compromise reached between the institutions on a very prudent budget on the level of payment appropriations (€115.5 billion, or 0.99% of EU Gross National Income), since it will be a start-up year for new programmes in the 2007-2013 financial framework. He said he expected need to rise in following years. Mr Elles acknowledged that the EP's first reading approach, consisting of putting considerable funds in reserve, sometimes lacked coherence. That was why, after intensive discussions with the Council and Commission, the EP would lift the reserve on funding for the Common Foreign and Security Policy (CFSP) and administrative spending. In addition, on first reading the EP decided to hold 30% of funds, a total of over €500 million, in reserve for four lines, the execution of which seemed to pose problems. Ultimately, and thanks to the constructive response from the Commission, the EP will release most of this funding and retain only €29 million in reserve on four lines.
Louis Grech (PES, Malta), the rapporteur on the budgets of the other institutions, stressed that waste had to be avoided, and said he was concerned by delays in the Commission's recruitment of new officials to meet the needs of the 2004 EU enlargement. He pointed out, however, that the 801 posts requested by the Commission for 2007 had been approved. The institutions were called on to provide fuller reports on their activities to make it easier to check that funding is being used properly and justify the execution of the budget appropriations. Mr Grech stressed, too, the need for better cooperation between the institutions. The Economic and Social Committee and Committee of the Regions joint administrative services should help to avoid double employment and to reduce costs. The EP recommended that a study to assess the functions and activities of these two institutions be carried out by the end of 2007 at the latest.
Ingeborg Grässle (EPP-ED, Germany) urged the Council to accept the compromise on the financial regulation amendments. She said that the EP would not see its rights removed on budgetary matters, and warned that the EP would not approve the 2007 appropriations if Member States were to call the improvements made by the EP to the text on the financial regulation into doubt.
Speaking on behalf of the EU Council of Ministers, Finnish Finance Secretary of State Ulla Maj Wideroos said that the institutions were arriving safe and sound, thanks to the general agreement on the 2007 budget. “We have resolved all the various areas of conflict,” she said, and she felt that the 2007 budget allowed account to be taken of EU priorities: enhancing competitiveness and cohesion within Member States and meeting commitments resulting from EU enlargement. The 2007 budget was an increase, “without being too much of a burden”, and provided for a “realistic” level of payment appropriations. She said that the Council had been guided by the principle of strict budgetary discipline. She gave assurances that the Council would adopt the new financial regulation text agreed with the EP. She welcomed the fact that this year the institutions had not needed to use the flexibility instrument (which allows an overspend of up to €200 million in a financial framework column).
The Commissioner with responsibility for the budget Dalia Grybauskaité expressed her satisfaction at the outcome of the budgetary procedure (new financial regulation, approval of posts requested) and acknowledged that everyone had made great efforts to find a compromise that allowed complete agreement on the 2007 budget to be achieved. The EPP-ED and ALDE groups were generally pleased with the outcome of the 2007 budget negotiations. The European Socialist group gave its backing to the agreement, while, at the same time, considering the appropriations to be to little given the policies to be developed. The Greens/EFA group said it intended to vote against the package and, just as it often does before an EP vote, presented an alternative proposal significantly increasing appropriations, especially for EU action throughout the world. The other groups (GUE/NGL and UEN) also criticised the EU budget's lack of ambition. (lc)