Brussels, 12/09/2007 (Agence Europe) - On Wednesday 12 September, the European Commission adopted a public consultation document on the EU budget review for 2008-09. Entitled “Reforming the Budget, Changing Europe” this communication aims to provide the means for reflecting on changes that need introducing, as well as on spending and income. Following this consultation phase of all stakeholders (at local, regional, national and European levels), which is expected to last until 15 April 2008, the Commission will present a proposal at the end of 2008, or beginning of 2009, that expresses its ideas on EU budget reform. The most controversial proposals, however, on the new financial framework (that cover a five or seven year period beginning in 2014) will not be unveiled until the end of 2010 or beginning of 2011 by the next Commission. When the 2007-13 budget was agreed by member states in December 2005, the European Council called on the Commission to present an “exhaustive and broad review of all EU spending, including the CAP, and of all other resources, as well as the British rebate”.
During a press conference, José Manuel Barroso, the president of the European Commission, declared that publication of this consultation document aimed to open a “no-taboos debate on European Union spending priorities, this also means, no taboos debate on future policy”. The president of the Commission explained that this did not yet involve a proposal on the next financial perspectives: “At this stage, it is not a proposal for the future financial perspective. The overall size of the budget and detailed breakdown will naturally be presented by the next Commission before 2014”. Mr Barroso concluded: “We want to stimulate a debate on policies' added value”.
Mr Barroso stressed that “the budget is changing but Europe and the world are changing even faster”. Subsequently, a budget review aims to help the EU change and make better choices that respond to future challenges, added Mr Barroso. He provided a few examples highlighting the considerable developments in Community spending. In this regard, Common Agricultural Policies (CAP) payments in 1985 absorbed 70.8% of the total EU budget. In 2013 this agricultural spending was expected to represent only 32% of total volume. Funding policies linked to competitiveness, external actions and rural development was originally very limited (only 7.3% of the budget). The new priority accorded to economic development and competitiveness will allow for funding for these policies to increase to 26% in 2013 (10.2% for competitiveness, 6.3% for external actions and 7.3% for rural development). Barroso could also have pointed out that funding for regional policy (Structural and Cohesion Funds) will increase from 17.2% in 1988 to 35.7% of the budget in 2013.
Barroso says “CAP must change”
In reply to questions from the press, Mr Barroso welcomed the fact that the French president, Nicolas Sarkozy, had taken the initiative in launching a debate in his country on the future of the CAP. The president of the Commission said that the world was changing and so must the CAP. Barroso said that the EU had to do more to preserve its rural world and take into account new concerns (the environment, quality of life and food safety). Mr Barroso confirmed that that the Commission would present its CAP bill of health on 20 November (EUROPE 9473 on the proposals envisaged by the services of Agriculture Commissioner Mariann Fischer Boel.) Without entering into the details of the draft, he indicated that the Commission would be suggesting a gradual increase in cross compliance, more support for rural development, and the creation of new aid instruments that were more compatible with WTO rules.
In addition, Barroso indicated that the “British rebate” would also be debated during the 2008-09 budget review. He admitted that there was a link between the CAP and the rebate to the United Kingdom, as demonstrated during the difficult 2005 negotiations on financial perspectives for 2007-13.
Dalia Grybauskaité, the commissioner for budget affairs, appeared more ambitious. She declared that even the name of the initiative had the whiff of reform about it, which could lead to changes in Europe. She added that this reflection process on the budget is expected to be launched at the same time as the discussion on treaty reform. She said that she hoped that the agreement that member states reached on the new EU treaty would help the Commission set priorities for the presentation of concrete proposals on the future financial resources of Europe by the end of 2008 at the latest. (lc)