By Martin Banks - 21st November 2011
In order to continue bankrolling ITER, cuts will likely be made to the EU research budget
Helga Trupel
Parliament's biggest political group says the two per cent EU budget rise proposal for next year which was agreed at the weekend represents a "strong signal" for Europe.
Member states thwarted an attempt by parliament to push through a major increase in the EU's budget next year.
Lengthy budget talks ended at 3am on Saturday with settlement on a 2.02 per cent budget increase - close to a budget freeze in real terms at €129.86bn.
Previously, parliament, in defiance of pleas from some members to accept a standstill budget because of the global economic crisis, had maintained demands for a budget increase of 5.2 per cent for 2012.
But three-way talks involving negotiators from the parliament, commission and EU council have now ended at a much lower figure.
The agreement is now subject to adoption by parliament and member state governments.
Reaction was swift with Giovanni La Via, the EPP spokesman on budget 2012 proposals, saying, "This agreement shows the will of the European institutions to send a message of hope and responsibility to citizens, taking into account the current difficult times of crisis.
"The budget will be especially focused on investment and actions essential to promote economic growth in the EU."
He said the EPP group was "satisfied" with the outcome of Friday's talks, adding, "For us it was important to ensure the financing of key policies, such as research, innovation, support for small and medium-sized enterprises, business competitiveness, and protection of the agriculture sector and management of migratory flows."
"Parliament and council have also adequately funded the common agricultural policy and cohesion policy, which account for about 70 per cent of community resources."
"I believe that today, more than ever, we need convincing answers to give to those who put in doubt the very essence of being together in Europe, and I think that the agreement found today proves that the EU is there and works to give real added value to its citizens."
However, the Greens criticised the deal, which they said "represents a scale back of the original proposals by the commission".
The group said it is also concerned about the proposed spending in key areas, notably the "disproportionate" amount of funding for nuclear energy.
Green budgetary spokesperson Helga Trüpel said, "This deal represents a scaling back of ambition for Europe and for an EU response to the crisis, mirroring the narrow-minded austerity focus of EU governments at national level.
"The EU budget is a key instrument for European investment and should be a key instrument for stimulating European economic recovery in response to the crisis but this deal will reduce its ability to do so."
She added, "The proposed spending in key areas will also fail to ensure the sustainable transformation of the European economy, by prioritising investment in green technologies, and limit the ability of the EU to meet the goals it has set for itself under the 2020 strategy.
"The EU is falling behind emerging economies in terms of sustainably transforming its economy and this budget will fail to redress this."
Trupel, a German member, went on, "The council took a particularly hypocritical approach as regards funding for the ITER nuclear fusion project. Despite its blind focus on cutbacks across the budget, the council is still insisting that the ballooning costs for ITER are met under the EU budget.
"Instead, with nuclear fusion a technology that will not be commercially-viable before 2050, if ever, the council should finally give up on pouring public funds into this hugely expensive white elephant."
"In order to continue bankrolling ITER, cuts will likely be made to the EU research budget, where the funds could be used to support technologies that might actually contribute to the European economy in the short-term."
Further reaction came from James Elles, budget spokesman and lead negotiator for Britain's Conservative MEPs, who said, "Our consistent argument in favour of a freeze in the budget has succeeded in preventing an increase that would have been outlandish and unacceptable in such tough economic times.
"The UK prime minister greatly helped and led the way by stating early in the process that a standstill had to be the goal. He then rallied other key nations to that view, and in negotiations that pressure bore down heavily on the parliament's unrealistic ambitions.
"To trim spending is the only responsible way when sovereign debt is undermining the euro and the global economy.
"Our persistence is winning over other groups and MEPs to our philosophy that the EU needs to spend just as much effort on saving funds as spending them."
