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Europe Daily Bulletin No. 9855
Contents Publication in full By article 11 / 31
GENERAL NEWS / (eu) eu/budget

Ecofin 2010 to request “justified resources” due to crisis affecting national budgets

Brussels, 05/03/2009 (Agence Europe) - “The budget of the European Union for 2010 should provide sufficient and justified resources to implement and develop efficiently and effectively the various policies of the Union, bearing in mind their multiannual nature. The current economic situation, which places additional pressure on national budgets, makes all this even more important”. The conclusions the Ecofin Council is expected to adopt on Tuesday 10 March on the budget guidelines for 2010 therefore indicate that the European Union is confronting unexpected challenges, in particular, the current financial and economic crisis. In this context, the Council will underline the importance of the European economic recovery plan, as endorsed by the European Council of 11-12 December. EU member states will point out that the budgetary procedure for 2010 will take place in a year which will see the election of a new European Parliament and which is the last year of the mandate of the current Commission. In this regard, the Council will underline the importance of “continuing to strengthen cooperation” between the Community institutions, which is “a key factor of a smooth and successful budgetary procedure”.

The Council believes that the conclusions emphasise the need for strict compliance with the Multiannual Financial Framework (MFF). Expenditure must strictly remain within the limits fixed therein and sufficient margins must be maintained under all the ceilings of various headings and sub-headings of the MFF, with the exception of sub-heading 1b, “for the purpose of sound financial management and notably to cater for unforeseen circumstances”.

As regards some sectoral issues, the Council identifies the following elements as crucial in preparing the 2010 budget. For Competitiveness for Growth and Employment, the Council stresses the importance of fostering investment, particularly in infrastructure and energy, in full compliance of the European Council's conclusions of December 2008. With regard to Competitiveness for Growth and Employment, it is essential to reach cruising speed in the implementation of Structural and Cohesion Funds and avoid recurrent under-execution in these areas. In the context of the current economic downturn, special attention should be paid inter alia to the simplification of rules and procedures, rapid start of programmes and projects still pending, including the relevant major projects, and increased pre-financing. It therefore requests the Commission to speed up the compliance assessment procedures of the management and control systems in order to start the interim payments as soon as possible in 2009. Concerning Common Agricultural Policy (CAP) spending, the Commission is invited to present realistic forecasts already in its Preliminary Draft Budget (PDB) and then in its “ad hoc” letter of amendment of October. As regards Citizenship, Freedom, Security and Justice, the Council recalls the importance of allocating sufficient resources to EU policies such as immigration. As far as External Actions are concerned, the Council stresses that sufficient margin under the ceiling of heading 4 is vital for the European Union, in order to enable it to provide for unexpected needs and crises. In this context, the Council draws attention to the constantly growing role of the Common Foreign and Security Policy (CFSP) and the need for it to continue to be adequately funded. The Council recalls that the common objective for Administrative Expenditure is increasing efficiency along the same lines adopted by member states to optimise the use of resources.

In conclusion, the Council recalls that the budget is one of the most significant tools to guarantee the accountability of the European Union towards its citizens; likewise it is fully aware that an accurate and accountable use of EU resources is one of the essential means to reinforce the trust of European citizens. (L.C/transl.rh)

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