Brussels, 22/12/2008 (Agence Europe) - There is going to be a wait for new funding from the Community budget for the economic recovery. Although the Commission plans on mobilising up to €14.4bn from the Community budget, the additional envelope of €5bn for large scale trans-European energy and network projects and broadband infrastructure has still not been approved by the Council of the EU. The European Commission was planning on these funds coming from the Common Agricultural Fund (CAP) section for 2008 (€3.5bn) and 2009 (€1.5bn). As €3.5bn from the current (2008) has to be used up, the budget decision must be made before the end of the year.
At this stage, for reasons related to budgetary discipline, this timetable is still posing a problem for net contributor countries (particularly Germany, Austria, Netherlands and Sweden). Many countries are also reluctant to give their verdicts in the absence of a list of concrete Commission projects. Although the European Council has, in principle, opened the way up to a revision of the financial framework, it has not given any clear indication of how these funds will be raised. It has also made any operation subject to a Commission presentation of concrete projects (taking into account geographical balance). At the end of the last meeting on Thursday 18 December, of the Committee of Permanent Representatives from Member states to the EU (Coreper), the possibility of obtaining the qualified majority necessary for approving the reallocation of funds, still appeared uncertain. The Commission is due to submit such a list of projects for funding, to COREPER on Tuesday 23 December. This final meeting of EU27 ambassadors this year will therefore be the last chance to gain approval for funding from section 2 for 2008. (A.B./trans/rh)