Brussels, 02/07/2009 (Agence Europe) - COREPER, the Committee of Member States' Permanent Representatives to the EU, noted unanimous agreement on Thursday 2 July on the draft EU budget for 2010. The EU Council of Ministers' first reading of the draft 2010 budget will take place on 10 July. It is basically a balanced budget that takes account of the straitened economic and financial situation of EU member states' own budgets. The budget has not yet taken account of the additional expenditure arising from the European Economic Recovery Plan (€2.4 billion in 2010) or the new administrative spending arising from the potential entry into force of the Lisbon Treaty.
At present, the Council's preparatory committees are forecasting a 2010 budget of €137.944 billion in commitment credits (€612.90 million less than suggested by the European Commission in its Preliminary Draft Budget), leaving room for manoeuvre of €2.374 billion. Payment appropriations of €120.521 billion are planned, in other words 1.02% of the EU27 gross national income (GNI). The Council reduced the payment appropriations set out in the European Commission's initial draft by €1.795 billion, removing €408.3 million from Heading 1a (Competitiveness for Growth and Employment), €293.1 from Heading 1b (Cohesion), €491.4 million from Heading 2 (Conservation and Management of Natural Resources, including €118 million in cuts in some farm spending) and €508.35 million from Heading 4 (The EU as a Global Player).
The €5 billion European Economic Recovery Plan was approved in April 2009. After an initial cash injection of €2.6 billion this year, a further €2.4 billion will be added to the 2010 Budget as follows: €1.98 billion for funding energy projects and €420 million for developing broadband in rural areas and boosting measures to deal with the 'new challenges' set out in the Common Agricultural Policy (CAP) health check. This €2.4 billion package has not yet been added to the draft 2010 Budget because it is expected to be funded through a 'compensation mechanism' using the 'budget agreement procedure' for the 2010 tax year, the second reading of which is scheduled for the end of the 2009 tax year.
Germany is expected to make a unilateral declaration pointing out that implementation of the aid programme for the most disadvantaged individuals in the EU must respect EU law. In late 2008, Germany lodged an appeal at the European Court of First Instance against EU Regulation 983/2008 on resources to be accounted for in the 2009 budget for the supply of food (from the EU stockpiles) for the poorest people in the EU. The programme will continue until the end of 2009, but there is a legal vacuum for 2010 and beyond until the Court of First Instance issues its ruling on the food aid programme's legal basis. Germany, along with the Czech Republic, Latvia, Finland, Denmark, the Netherlands and the United Kingdom, believes that the aid for the poorest individuals should not come from the CAP because the stockpiles no longer exist, and should be granted from the EU's social policy instead. (L.C./transl.fl)