Brussels, 17/11/2008 (Agence Europe) - EU Council of Ministers' committees put together a compromise deal last week to be defended in second reading on Friday 21 November 2008 of the EU's draft budget for 2009. The only countries which have not agreed to the deal are Poland and Germany. Poland says that too great a cut has been made in farm spending and Germany opposes a large hike in funding for the food aid programme for highly vulnerable people. The Committee of Permanent Representatives of the member states to the EU (COREPER) will discuss the matter on Wednesday 19 November to put the finishing touches to preparations for the Budget Council of 21 November 2008.
The compromise reached at COREPER on Wednesday 12 November confirmed the work of the Council's budget committee, discussing the Council's first reading in July 2008 and amending the three amending letters published by the European Commission. The first is on aid for Kosovo and Palestine; the second on farm spending (a fall of €1.3 billion) and the third on changing the nomenclature to take account of the work of the Reflection Group established by the European Council of 14 December 2007 (chaired by Felipe Gonzalez). The draft second reading of the budget at the Council has an overall EU budget for 2009 of €136,028 billion in commitment appropriations and €113,914 billion in payment appropriations (0.88% of the EU's gross national income). This is very different from the European Parliament's first reading: €3.3 billion less in commitments and €10.4 billion less in payments.
On farm spending, the Council agreed to a €185 million rise in the 2009 budget for the programme to distribute food to highly disadvantaged people in the EU. A Council source said there would be €500 million in total to help the least well off.
COREPER also prepared for the concertation meeting between the Council and a European Parliament delegation on Friday 21 November 2008. The main issue on the agenda will be the farm fund (farm aid of a billion euros for the world's poorest countries). The French Presidency of the Council of the EU said that people were not at loggerheads and there was a desire on both sides to strike a responsible agreement. The Council and EP agree on several points - refusal to finance the fund using unused monies earmarked under the Common Agricultural Policy (therefore dropping the European Commission's initial proposal), with both arms of the budget authority calling for the monies to come from Heading 4 (EU foreign action); solutions have to be found to cover the full €1 billion. Some sources also suggest that the Council would not have been opposed by the EP if it wanted the fund to cover three years (2008-2010) rather than two (2008-2009). The Council argued that adding an extra year was logical because the EU wants to fund more fundamental action rather than simply sending EU funding for big international organisations. The Council and the EP disagree on where the billion euros should come from. Member states want a combination of several sources of funding (the flexibility instrument, the emergency aid reserve and redeploying funding from Heading 4), whereas the EP delegation opposes any redeployment, preferring a revision of the Financial Perspectives (overall budget). Therein lies the rub - striking a balance between these two opposing views. A diplomat explained that both sides want agreement to be reached and budget experts can be incredibly creative.
The other big point on the agenda will be total payment appropriations. The final deal will have to be similar to the European Commission's preliminary draft budget and its amendments, in other words a total of some €120 billion in payment appropriations. (L.C./trans.fl)