Brussels, 21/11/2008 (Agence Europe) - Agreement on the main points of next year's seemed close between EU Finance Ministers and the European Parliament on the evening of Friday 21 November. Discussions focused on the technical arrangements for financing the billion euro to help agriculture in developing countries and on the level of payment appropriations in the Community budget in 2009. After holding consultation negotiations with the Parliament, the Council was due to meet to complete its second reading of the draft 2009 budget. Formal adoption by the EP of the Community budget for 2009 will take place at the plenary session of 15-18 December in Strasbourg.
The €1 billion “food facility” to provide a helping hand to a number of third countries in response to the increase in food prices has, in a way, been ring fenced. What had to be found was how to finance it under column 4 (external relations) of the budget. As it had said, the French Presidency of the Council, during consultation with the EP, argued for a three-year programme (2008-2010) and a combination of three funding sources: - re-allocation of credits within column 4 (despite the fact that this column, is under pressure); - use of the emergency aid reserve; - and use of the flexibility instrument. The Parliament delegation, led by Reimer Böge (EPP-ED, Germany) and including the 2009 budget rapporteur Jutta Haug (SPD), fought to win some new money, unable to discuss revision of the financial perspective with the Council.
The first draft compromise, brought forward in early afternoon, provided for: €250 million in re-allocation of credits, €250 million in new money (thanks to the re-opening of the inter-institutional agreement in order to increase the emergency aid reserve), €400 million under the flexibility instrument and €100 million from the emergency aid reserve. Some member states were less than enthusiastic about re-opening the inter-institutional agreement (for which unanimity in Council in required). Under the first compromise, the billion would be allocated as follows: €272 million in 2008, €548 million in 2009 and €180 million in 2010.
Credit appropriations. The Council and EP also discussed the level of total payment appropriations for the 2009 budget. The first offer from the Presidency was €116.126 billion (0.897% of EU gross national income).
The European Parliament and the Council were also due to agree the updated farm budget (letter of amendment No 2/2009). Needs were reduced by €1.030 billion in commitment appropriations and by €378 million in payment appropriations (against the preliminary draft budget). Council was to endorse an increase of €185 million for the programme to distribute food the most underprivileged (funding for this programme, then, came to €500 million for 2009).
In EU external activities, the Community institutions were due to agree letter of amendment No1/2009 which provides for a further €179 million in commitment appropriations, with €40 million of which for Kosovo and €139 million for Palestine. It also provides for an additional €180 million in credit appropriations (for Palestine). Thus, for 2009, the total aid budget for Kosovo would be €469.3 million in commitments and €225.4 in credits. For Palestine, funding would be €300 million in commitment appropriations and €288 million in credit appropriations.
Reflection group. The Council and EP were to agree letter of amendment No3 to the 2009 budget. It creates a new title within the Council budget (section II), with €1.06 million, for the reflection group, chaired by Felipe Gonzalez (set up by the European Council on 14 December 2007).
Reduction in national contributions in 2008. The Council and PE were to agree on the draft amending budget No10 to the 2008 general budget, which takes account of a rise in revenue forecasts (by €2.045 billion) and a reduction (of €4.891 billion in payment appropriations) in expenditure. With regard to expenditure, the breakdown is: - competitiveness for growth and jobs (under column 1a) (€50 million); cohesion for growth and jobs (under column 1b) (€4.515 billion); - fisheries agreements reserve (column 2) (€20.7 million); - citizenship (sub-column 3b) (€40.3 million); - EU as a world player (column 4) (€226 million). The combined effect of the increase in revenue forecasts and the reduction in credit appropriations means a reduction of €6.936 billion in member states' contributions to the 2008 budget. Lastly, the Council and EP supported the draft amending budget (No11/2008) allocated €7.6 million in commitment and credit appropriations from the European Union solidarity fund following the drought on Cyprus. (L.C./transl.rt)