MEPs make budget peace with EU constitution

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By Bruno Waterfield
- 24th May 2004

Conciliation procedure rather than ‘tie-break’ budget stand offs has satisfied MEPs in an EU constitution row over the powers of the European Parliament.

The parliament had gone in fighting to re-launched constitution talks over jealously guarded powers to scrutinise – and sign off – the EU budget.

MEPs will never forget that the parliament’s 1999 refusal to sign off the budget led to the resignation of the European Commission amid a corruption scandal – changing the course of the EU.

Under a new EU constitution national governments and chanceries were keen to claw back control over Europe’s spending in a bid to give the EU’s council of finance ministers the final say.

But amid confusion on the parliament side, MEPs continued to brief against Irish EU presidency proposals up until the last minute, an 11th hour compromise has satisfied both sides.

Parliament’s observer at constitution talks Klaus Hänsch signalled an all clear for the deal.

“Nothing has got worse for the European Parliament,” he said.

The senior Socialist MEP can live with a conciliation process which treats both sides equally - a key issue for parliament.

“We haven’t said we accept it yet but this result is acceptable. For me it is tenable,” he said.

Complex new procedures will now see three week ‘conciliation’ periods between parliament and national officials rather than stand-offs loaded in favour of finance ministers should MEPs contest Brussels budgets.

In the event of a failure to agree the commission will be forced to present a new budget proposal and the approval procedure will start again.

“It means placing an extra burden on the commission but we are ready to help in the spirit of compromise,” said an official.

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