Brussels, 10/12/2008 (Agence Europe) - Despite the strong reservations expressed last week by several European finance ministers (see EUROPE 9795), on Wednesday 10 December, the European Commission adopted a proposal to re-open the EU budget financial perspective to find the €5 billion needed in 2009 and 2010 to improve energy interconnections and for broadband infrastructure investment. This is part of the European economic recovery plan which is on the agenda of the European Council in Brussels on 11-12 December.
To support its proposal for a review of the financial framework, the Commission says that speeding up investment in trans-European energy interconnections and broadband internet infrastructure would allow the EU to shift to a low carbon economy. The Commission believes that the €5 billion can be made available in the “Competitiveness for growth and jobs” heading, from the margins in heading 2 “Conservation and management of natural resources”, which includes agricultural spending. The Commission proposes raising the commitment appropriations annual ceiling in heading 1a by €3 billion in 2009 and by €2 billion in 2010. This increase will be compensated by a lowering of the commitment appropriations annual ceilings in heading 2 by €3.5 billion in 2008 and €1.5 billion in 2009.
According to Commission calculations, the margins available and provided for heading 2 are €3.6 billion in 2008 and €3.85 billion in 2009. In order to reassure farmers, the Commission says that this decision will not prejudice the financing of necessary spending on the Common Agricultural Policy (CAP). The Commission undertakes to take the necessary steps to ensure that decisions on CAP spending, including on the “health check” agreement, will be respected.
Point 22 of the inter-institutional agreement of 17 May 2006 on budgetary discipline states that any review of the financial framework up to 0.03% of the EU's GNI (Gross National Income) would require a qualified majority vote in the Council. 0.03% of GNI is a little under €4 billion. Since the credit request is for €3.5 billion in 2008 and €1.5 billion in 2009, the vote in the Council will be by qualified majority. If the review had represented more than 0.03% of GNI, the decision would have had to have been adopted unanimously in Council.
In suggesting taking €3.5 billion from the margins of the 2008 agricultural budget, the proposal implies decisions before the end of the year. The ball is now in the European Council's court. Some diplomatic sources say the Commission proposal has come too late, and without knowing what projects are hidden behind these €5 billion. (L.C./transl.rt)