Strasbourg, 25/10/2007 (Agence Europe) - On Thursday 25 October, the European Parliament approved in first reading the draft budget for 2008 with sharp increases in expenditure and is urging other institutions to negotiate with the EP on adjusting the financial framework to find the monies required to launch the EU's satellite navigation programme known as Galileo. A tough battle lies ahead for the three EU institutions over finalising agreement on the EU budget for 2008. The next stage in the proceedings will be the second reading by the Council on Friday 23 November of the draft budget for 2008.
Adopting the report on the draft budget 2008 by Kyosti Virrankoski (ALDE, Finland) by 487 to 73 with 15 abstentions, the European Parliament welcomed the European Commission's 19 September 2007 proposal calling for a review of the financial framework in order to ensure suitable funding for Galileo and the European Technology Institute (ETI). The EP foresees a total of €890 million in commitment appropriations for Galileo and €400 mil in payment appropriations, and hopes agreement can be reached among the institutions on revising the financial framework. The EP also approved the draft amendment to the Preliminary Draft Budget for 2008 adopted by the European Commission on 17 September 2007 that sets out an increase in payment appropriations for Kosovo (€120 mil) and Palestine (€142 mil), representing a total of €262 mil compared with the figures initially put forward in the Preliminary Draft Budget (PDB). For administrative expenditure, the EP agreed to the new posts requested by the Commission but wants to put €49 mil in reserve while awaiting research from the European Commission on the recruitment of officials from the new EU member states.
Following the vote in first reading at the EP, the EU's draft budget for 2008 has a total of €129.69 billion in commitment appropriations, or €1.29 bn more than what the Council had foreseen in first reading in July 2007. The EP's version has €124.2 bn in payment appropriatoins, or €4.79 bn more than in July (the Council's first reading). The draft budget for 2008, as adopted by the EP at the moment, represents 0.99% of the EU27 gross national product (GNP) in payment credits, compared with 0.95% of GNP (€119.41 bn) after the cuts made by the Council in July (and 0.97% in the PDB).
Competitiveness (Heading 1a). €10.34 bn (commitments). The EP rejected the cuts in expenditure foreseen by the Council in first reading, particularly the cuts in the multi-annual programmes adopted in codecision that aim to implement the Lisbon Strategy. It restores the funding scrapped by the Council and suggests increases for priority projects like the 7th Framework Programme for Research and Galileo, etc.
Cohesion (1b). €46.87 bn (commitments). The EP regretted the cuts in expenditure made by the Council in the Structural Funds and Cohesion and has restored them.
Natural Resources (2). €56.38 billion (commitments). The EP opposes what it describes at the slashes suggested by the Council in several agriculture budget and has restored them. It recognises, however, that the Council will have the final word on compulsory expenditure. The slow pace of adopting the rural development programmes is an area of concern for the EP.
Freedom, Security and Justice (3a). €728 million in commitments. The EP has put the funding for the 'Return Fund' in reserve while awaiting adoption of the legal basis. Frontex's budget has been set at €70 mil (see related article).
Citizenship (3b). €614 mil (commitments).
'External Action' (4). €7.2 bn in commitments. The EP has approved the requested increases (for Kosovo and Palestine) and is even suggesting an extra €10 mil in this connection. It has cut common foreign and security policy spending (CFSP) by €40 million and, as recommended by the European Parliament's Budget Committee (see EUROPE 9526) it is calling for the flexibility instrument to be used to provide €87 mil for CFSP expenditure and other priorities (including Kosovo and Palestine). (L.C.)