By Bruno Waterfield - 11th May 2004
The European Commission has slashed national dues for the EU’s 2004 budget following a €5.47 billion surplus on Brussels 2003 books.
Cash-strapped capitals facing budget deficits – and EU ire over euro rules setting tight fiscal guidelines – get welcome relief on European contributions.
Budget bad boys in Berlin, Paris and Rome, subject to EU reprimands on breaching te EU Stability and Growth Pact’s three per cent of GDP debt limit, get a shot in the arm.
Germany’s EU bill has been slashed by €1.2bn, French dues are down €890 million and Italy’s purse is €737m fatter.
“Not only do we have a historically low budget in 2004, but member states financing burden will be further reduced by the under-spend of last year,” said Schreyer.
“The news that 2004 contributions can be reduced will be good news for some member states which have difficulties.”
The German EU budget boss dismissed the possibility that the 2003 surplus may give ammunition to governments seeking budget caps.
National treasuries – headed up by the EU’s six biggest cash givers - are pushing hard for annual spending to capped to one per cent of Europe’s income.
Commissioners are fighting off the move which would see real term cuts to planned 2007 – 2013 expenditure of 1.14 per cent.
Schreyer does not believe that final 2003 spending of 0.93 per cent will damage the EU executive’s budget case following the Europe’s May 2004 expansion from 15 to 25 countries.
“2003 was a budget made for 15 member states,” stressed the commissioner.
She accused penny pinching European finance ministers of comparing “apples to pears” in budget rows.
“If you compare what is comparable… over the years we keep up the same level of budgetary balance,” said Schreyer.
“Finance ministers come up with wish lists… the commission must balance different policy areas and different member states.”
Jibing at Berlin’s strong attacks on EU spending plans Schreyer reminded Germany and other critics that unlike national capitals Brussels was not allowed to run up debts.
“We can not knock up even a deficit of three per cent,” she said. “Any going into the red is banned.”
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