Brussels, 14/10/2008 (Agence Europe) - On Monday 13 October 2008, the members of the European Parliament's budgets committee decided to postpone their vote on the amendment to the current budget (2008) to provide €750 million for farming in developing countries (see EUROPE 9757 and 9759). This will have the direct impact of meaning there will not be any payment appropriations in 2008 from this fund and the entire budget (€1 billion) will have to be distributed in a different manner. The Commission initially planned for the money to be spent in two tranches: €750 million in the 2008 budget and €250 million to be foreseen in the 2009 budget.
A representative for the French Presidency of the EU suggested seeking an over-arching solution to the fund when negotiating the EU's 2009 budget. It is hoped that agreement can be reached at the meeting on 21 November 2008 between the two arms of the EU's budget authority (the EP and the Council) ahead of second reading of the draft budget for 2009 by the member states.
The hesitancy over the €750 million initially earmarked for 2008 is due to disagreements on how the full aid package (€1 billion) is to be funded. The EP's budgets committee wants the budget to be revised to earmark the funds from heading 4. The European Commission suggested using money not used in heading 2 of the common agricultural policy (preservation and management of natural resources). The Council agrees on one thing - that the budget should not be revised - but is undecided about which funding option to back - heading 2, heading 4 or the European Development Fund. (L.C./transl.fl)