Brussels, 29/04/2009 (Agence Europe) - On Wednesday 29 April, the European Commission adopted a preliminary budget for 2010 that is quite ambitious: a 1.6% rise in commitment appropriations and a 5% increase in payment commitments compared to the 2009 budget if amending budgets are taken into consideration, including the 4/2009 amending budget, which still requires formal adoption by the Parliament for funds for 2009 for economic recovery (EUROPE 9890). Siim Kallas, the European commissioner for administrative affairs, said that the recovery will occur in 2010 and citizens ought to be able to feel it on the ground. Kallas is temporarily taking over the budget portfolio while Dalia Grybauskaité is back in Lithuania where she is a candidate in the first round of the presidential elections on 17 May.
Mr Kallas informed the press that the level of spending ought to allow for greater expenditure. The Commission is proposing a Community budget for 2010 of €138.6bn in appropriations, 1.18% of the EU's Gross National Product (GNP) and €122.3bn in payments (1.04% of GNP). The economic recovery will be at the heart of next year's spending. Funds for the main research and energy programmes will increase by more than 12% and the envelope for cohesion policy will also grow.
Heading 1 competitiveness and cohesion for growth and jobs. The Commission is counting on €62 billion in payment appropriations for competitiveness and cohesion, with 44.9% accounting for the biggest slice of the budget. Sub-heading 1a competitiveness (€12.8bn), the preliminary budget includes: Trans-European Networks for transport and energy, which will receive funding of 12.7% above 2009's figures (€1.08bn); funding for the innovation and competitiveness programme will increase from 3.3% (to €0.5bn); 2010 will be the European year of the fight against poverty and social exclusion, will benefit from a budget of almost €20 million and will be accompanied by a whole series of initiatives to help all member states; the EU's radio-navigation satellite programme, Galileo, will obtain €0.9bn (+8%); the amount for research and development is expected to rise to €6.2bn in 2010. Sub-heading 1b cohesion (€49.4bn, a 2% increase on 2009 figures), the gradual introduction of funding for member states that joined the EU in 2004 and 2007 (EU-12) will continue. For the very first time, EU-12 countries will receive most of the funding from Cohesion and Structural Funds (52%). The EU-12 had 47% in 2008.
Heading 2 management of natural resources. The Commission is counting on appropriations of €59bn for 2010, 5.1% more than in 2009. The budget planned for the Common Agricultural Policy (CAP) will rise to €43.8bn in 2010, 6.4% more than in 2009. The 12 new countries of the EU will receive 19% of total agricultural aid in 2010, €11bn (as opposed to 18% in 2009 and 16% in 2008). Thanks to the CAP, the single market and the increase in market prices, the income of EU-12 farmers is now 47% more than their pre-accession incomes, noted Mr Kallas. Spending on rural development will increase by 2.4% and reach almost €15bn.
Section 3 citizenship, freedom, security and justice. The Commission is planning on a 13.5% increase in spending under sub-heeding 3a to €1bn (freedom, security and justice). These funds will go to projects for fighting crime and terrorism and help control immigration. The envelope for the 3b sub-heading (citizenship) is expected to be €600 million (-0.3%)
Heading 4 external action. In 2010, the EU intends to continue its assistance to least developed countries and continue to defend a “strong position in this respect on the world scene”. For the entire heading, however, the Commission is only allocating €7.9bn (1.8% more than in 2009), which represents 5.7% of the total EU budget (as much as for administrative spending). EU aid to developing countries through the development cooperation funding instrument will increase by 1.7% and reach a figure of €2.4bn. Pre-accession aid increases by almost 5% to stand at €1.6bn. Funding for the EU's Common Foreign and Security Policy (CFSP) will increase by 16% to reach €282 million. €170 million is also planned for the food facility in 2010.
Heading 5 for administrative spending. The Commission is suggesting an envelope of €7.8bn for 2010 (2.1% more than in 2009), with a moderate increase in Commission spending (+0.9%) to €3.6bn.
Recovery plan. In April 2009, the European Parliament, Council and Commission agreed to mobilise an additional €5bn for energy, the internet in rural areas and new challenges linked to health and the CAP. Following the first injection of €2.6bn in 2009, a further €2.4bn will be added to the 2010 budget. The source of this funding is due to be decided during the 2010 budgetary procedure. (L.C./transl.rh)