MEPs head for EU budget clash

MEPs are heading for a €7bn fight with national governments and the EU presidency over Brussels budgets for 2007.

The European parliament has backed an EU spending plan for next year set at 1.04 per cent of Europe’s gross national income, governments have set a 0.98 per cent ceiling.

Janusz Lewandowski, chair of the parliament’s budget committee, signalled that one confrontation would be over staffing levels in the European commission.

The Finnish EU presidency has proposed a freeze on commission recruiting in 2007 and up to 2000 job cuts over the next seven years.

“Our position… is that the new functions of an enlarged EU require qualified staff. We are conditionally supporting the commission in this respect,” Lewandowski said.

Parliament’s lead MEP on the 2007 budget, James Elles, warned governments that a properly functioning commission was needed to ensure “value for money” on EU funding programmes.

“We do not think the council’s decision is logical. We want value for money, you don’t get it by cutting staff that are needed to implement programmes,” he said.

But MEPs are putting pressure on the commission by putting 30 per cent of funds for flagship transport projects such as Galileo in “reserve”.

The parliament is seeking clarification that cash will be properly spent before releasing the money during later negotiations.

“We want to be sure we where money is going,” said Elles. “We want to be able to have a statement of value for money by the end of the year.”

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