By Bruno Waterfield - 7th June 2005
MEPs have taken a stand on the future of EU spending as national capitals war over Brussels spending ahead of a June 16 summit of European leaders.
The European Parliament has set out budget plans from 2007 to 2013 that are lower than original projections from the EU executive but higher than cost-cutting governments.
The parliament backed proposals drawn up by German MEP Reimer Böge by 426 votes to 140 against, with 122 abstentions.
Brussels chief José Manuel Barroso has welcomed a parliament budget blueprint which is €150 billion more generous than maximum spends sought by some penny pinching national treasuries.
“The European Parliament has shown leadership and good sense by putting the policy needs of the EU first,” he said.
“We respect the work done by MEPs in this domain, and note with satisfaction that they are backing a budget on the same scale proposed by the commission.”
“I hope member states can follow this example, and match resources to requirements, rather than impose arbitrary limits.”
Europe’s largest cash contributors – Austria, Britain, France, Germany, Sweden and the Netherlands – are seeking to slash EU expenditure.
The six net contributors – those who pay in more than they get back from EU coffers - are seeking to peg expenditure at one per cent of Europe’s Gross National Income (GNI).
Under the parliament’s ‘financial perspectives’ spending, measured as ‘commitments’, is pegged at 1.18 per cent of EU Gross National Income (GNI).
The European Commission is proposing 1.24 per cent or just over €1 trillion for the seven year period.
Cuts proposed by MEPs amount to some €47.5bn compared to a possible €197.9bn saving sought by member states.
A recent compromise from the Luxembourg EU presidency proposed 1.06 per cent or cuts of €149bn.
The commission is hoping that parliament’s budget intervention – support from MEPs is required for any future deal – will help tilt the scales at next week’s summit.
“Clearly, this report has great importance for the final phase of the negotiations,” said Barroso.
“I hope that the [EU] presidency will carefully consider the very balanced views expressed by parliament and take due account of them in the final round of negotiations.”
Negotiations for the EU budget have entered the endgame ahead of next week’s Brussels summit – a gathering also to be dominated by Europe’s constitution crisis.
The Luxembourg EU presidency is holding bi-lateral talks ahead of a ministerial “conclave” on June 11.
Barroso is urging EU leaders to do a deal on European expenditure despite referendum rejections to the European constitution in France and the Netherlands.
“When faced with political problems, the worst reaction would be to do nothing and remain paralysed. Rather, we should show that the EU remains a dynamic political force, strong enough to continue its work in the face of difficulties,” he told MEPs.
“I believe that, at a time when some would expect the union to be in disarray, an agreement on the financial perspective would show its determination to overcome problems and help generate renewed political impetus.”
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