By Martin Banks - 22nd October 2009
Is this the way parliament wants to bring the budget closer to the citizens?
Marta Andreasen
A huge row has flared after parliament voted on Thursday in favour of next year's EU budget being increased by 10 per cent.
MEPs in Strasbourg voted in favour of a budget figure of €127.5 bn for 2010, compared with this year's budget of €116 bn.
The commission had recommended a figure of €122.3 bn while member states, or the council, said it should be fixed at €120.5 bn.
Critics say a budget rise is the "last thing" Europe needs at a time of economic downturn.
But parliament's budget rapporteur László Surján said the proposed rise will "ensure that the crisis can be overcome."
He said that following the big majority in parliament for the proposal, he expects "very difficult and tough negotiations" to start with member states.
He said the €120.5 billion suggested by council was not sufficient and that the figure put forward by parliament offers a "global solution" to all member states to cope with the downturn.
He said, "The budget for 2010 needs to be the answer to solving the economic crisis and to re-launching the European economy. Therefore, more money is needed, while respecting the principal of value for money."
Members of the budgets committee had proposed increasing the budget by some €6 bn.
Parliament and member states will now enter into negotiations in an attempt to resolve the impasse.
UK deputy James Elles, Conservative budgets spokesman, said, "In the midst of a recession now was not the time to be putting extra billions onto the EU's budget lines.
"Deficit levels in some member states are at an historic high. In some countries the debate is not about where the money is going to be contributed but about the levels of cuts which will be needed to bring the expenditure back into line.
"It is not the time for parliament to be seen to be voting through billions of euros extra into the budget line for 2010.
"Conservatives will be looking closely at where monies can be reasonably executed in a way that is not excessive given the current economic climate.
"We will support increases in a number of areas that are compatible with our manifesto commitments, such as investing in new technologies, but we will be looking at other areas where expenditure savings can and should be made."
UKIP deputy Marta Andreasen, a former chief accountant at the commission, said, "This is unbelievable that in these times of financial and economic crisis.
"But what is worse is that, while the council at its first reading in July put forward a reduction of almost 2 per cent on the preliminary draft budget, this parliament is now proposing an increase of 5 per cent on it.
"The 2010 budget would then end up being over €127 bn in payment appropriations which equates to 1.08 per cent of the EU’s gross national income.
"Is this the way parliament wants to bring the budget closer to the citizens?
"It is all very nice to want to subsidise the Special Olympics in Poland and Greece and the European Youth Olympic Winter Festival in the Czech Republic, or even Xacobeo 2010, but our constituents have other priorities in their lives, such as paying their mortgages and giving a reasonable education to their children."
It is estimated, for example, that the daily cost of the EU for the UK currently amounts to €45m per day and the proposed increase will bring it to €50m or more with the reduction of the rebate.
She went on, "There are many other priorities in the UK to invest this money in, and now that the commission has warned that Britain is in danger of going bust due to its high level of national debt, this country would be happy to have a significant reduction on its EU contributions, and I am sure that other countries would also be happy with a similar reduction.
"Year after year the Court of Auditors has been unable to give us satisfaction that the EU budget has been legally and regularly spent, and I was really concerned at the lack of control over taxpayers’ money when I was the chief accountant of the commission back in 2002.
"But still parliament wants to put more money into the EU coffers. Do not count on me ever to vote in favour of any increase in the budget."
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