Brussels, 26/11/2007 (Agence Europe) - The Council of Ministers of the EU adopted without debate on Monday 26 November the results of the second reading of the draft budget for next year. The two branches of the budgetary authority, the Council and the European Parliament, concluded an agreement on the evening of Saturday 23 November on the budget for next year, including the financial arrangements for the future European satellite navigation system, Galileo. The European ministers responsible for the budget now pass the baton to their colleagues in transport, who are to attempt on Thursday 29 November in Brussels to reach an agreement on the broad outlines of an industrial provision for putting all of the 30 satellites involved in orbit by 2013.
Only Germany voted against the compromise obtained in the Ecofin Council, as a protest against the financing methods retained for the Galileo programme. Germany was opposed to the very end to funding the programme entirely from the Community budget, necessitating a revision of the financial framework 2007-2013. It reiterated its desire to use national contributions via the (intergovernmental) structure of the European Space Agency, in order to guarantee a “fair return” for national industry. Spain, whose industry is also involved in the project, abstained from the vote.
After the Ecofin Council meeting on Friday 23 November, Emanuel Augusto Santos, the Deputy Secretary of State for the budget from the Portuguese finance ministry, welcomed an “important agreement” with the European Parliament on the 2008 budget. The Portuguese presidency welcomed the fact that “all our objectives have been achieved”: - a solution on the financing arrangements for Galileo (€3.4 billion from 2008-2013) and the European Institute of Technology (€309 million between 2008-2013); - a compromise on the level of payment credits for 2008; - and a consensus on credits for the Common Foreign and Security Policy (CFSP), including for operations in Kosovo.
“Very happily we have concluded an agreement to pursue and complete the Galileo project, which was our top priority”, said the European Parliament rapporteur on the 2008 budget, Kyösti Virrankoski (ALDE, Finland). Now, in the future, Europe will no longer be “dependant” on American, Russian or Chinese systems; it will have its own satellite navigation system, added the MEP, in whose view the project “will enable the performance of European industry to be improved” in this area. On the subject of external actions, the EP's aim was to preserve both aid to Kosovo and Palestine and funding for other programmes which it considers a priority. “In our view, the EP has great responsibility to developing countries and on humanitarian aid and cooperation”, the rapporteur continued, stating that “thanks to this budget we can satisfy these demands”.
Dalia Grybauskaité, the budget commissioner, was also “very satisfied”. For the first time in the history of the European budget, the Commission proposed spending more in 2008 on competitiveness, growth and employment and cohesion than on agriculture. “And our proposal stayed the course”, she said, in the knowledge that the agreement made is “based on the Commission proposal”.
Funding for Galileo. The Commission had already programmed €1 billion in commitment credits between 2007 and 2013. That left €2.4 billion to find over the same period. The three institutions agreed to find the extra funds by revising the financial framework for 2007-2013. The €2.4 billion will be mobilised as follows: 1) increase of €1.6 billion in commitment credits under heading 1a (competitiveness for growth and employment) over the period 2008-2013, thanks to unused agricultural spending from 2007 (the institutions agree that this use of unused CAP funds will be a one-off); 2) use of €400 million from the 7th framework programme on research; 3) mobilisation of €200 million in credits redeployed under heading 1a competition and employment (including Euratom funds); 4) mobilisation of the flexibility instrument for €200 million (this budgetary procedure allows the ceiling of a heading in the financial perspectives to be exceeded by a maximum of €200 million).
For the year 2008, the funds envisaged for Galileo now stand at €940 million in commitment credits and €300 million in payment credits.
European Institute of Technology. The ETI, which will lead “communities” bringing together researchers, business and academics, will have €309 million in commitment credits over the period 2008-2013. These funds come from the unallocated margins under the 2008-2013 ceilings of heading 1a (competitiveness and employment).
Payment credits. The Council and Parliament agreed to limit the total volume of credit payments for 2008 to €120 346 billion. This represents 0.96% of the gross domestic income (GDI) of the EU of 27 and 5.71% more than the 2007 budget.
CFSP. As the Council wanted, the 2008 budget for the CFSP will be €285.25 million in commitment credits (€125 million or 79% more than in 2007), of which €162 million in total for EU civil, police and rule of law missions in Kosovo. The flexibility instrument will be used for €70 million to finance part of the credits for the CFSP. In payment credits, the CFSP budget will rise to €195.9 million.
The second reading of the draft 2008 budget by the European Parliament will take place on 13 December in Strasbourg. It will not be until the mini-plenary in Brussels on 18-19 December that the president of the EP will sign and adopt the Community budget for next year. (L.C.)