Governments reject bid to end row over Kosovo cash

Date: 18/11/1999

By Simon Taylor

EU GOVERNMENTS have rejected attempts by Budget Commissioner Michaele Schreyer to broker a compromise solution to the dispute between member states and MEPs over funding for reconstruction in Kosovo.

National budget officials agreed late last week that the extra money required should come from savings on other external relations initiatives instead of increasing the Union's overall budget for foreign policy projects.

The decision is bound to spark furious protests from MEPs, who insist that EU governments must provide more money to pay for unforeseen events such as the crisis in Kosovo.

At last week's meeting, national officials accepted most of the compromise proposals for next year's Union budget tabled by Schreyer two weeks ago. But they rejected the Commission's call for most of the extra €180-million needed for reconstruction projects in Kosovo to be taken from rural development funds, which would have meant increasing the overall external relations budget.

Afterwards, EU diplomats sought to play down speculation that this would provoke a new row with the European Parliament, which wants to see spending on foreign affairs increased above the €4.55-billion limit agreed by EU leaders earlier this year.

They claim the amount of additional funding needed for Kosovo could be lower than the €500 million originally suggested by the Commission and the World Bank, avoiding the need for a battle over the extra cash.

"There is a view among the member states that we just do not know what the real cost of Kosovo will be," said one official, adding that it would be difficult to hold talks with MEPs on how to raise the cash until the precise costs were known. " We are not close to the moment when we can discuss it," he said.

But some diplomats believe that the Parliament is determined to use the dispute to flex its political muscles. "The Council is talking about spending money while the Parliament is talking about its power. It is as if we were playing rugby and they were playing soccer," said one.

Further talks will now be held with MEPs on possible solutions to the dispute, but officials say they expect Union budget ministers to endorse their officials' approach at their meeting next Thursday (25 November).

Schreyer this week stressed the importance of reaching an agreement on the aid for Kosovo. "I would find it catastrophic if the EU failed to live up to its responsibilities," she told European Voice.

The Commissioner added that one of the biggest priorities was to help the province with its balance of payments' difficulties, pointing out that public servants such as teachers were currently working without being paid.

EU governments have rejected attempts by Budget Commissioner Michaele Schreyer to broker a compromise solution to the dispute between Member States and MEPs over funding for reconstruction in Kosovo.