2007-13 budget deal agreed

By Simon Taylor

Date: 06/04/06

MEPs have managed to win a EUR 4 billion-increase in the EU's spending for 2007-13 in negotiations with the Austrian presidency of the EU, concluded late on Tuesday night (4 April).

Announcing the deal on Wednesday, MEPs and European Commission President José Manuel Barroso said they were not satisfied with the final agreement between the Parliament and the Council. But Hans-Gert Pöttering, leader of the Parliament's biggest group, the centre-right EPP-ED, said: "We know we couldn't have achieved more." This view was shared by other group leaders.

The deal brings the EU budget for 2007-13 to EUR 866.4bn - from EUR 862.4bn agreed by EU government leaders in December 2005. This included EUR 2.1bn more for programmes aimed at boosting competitiveness and innovation. It breaks down as an extra EUR 500 million for trans-European networks, EUR 800m more for lifelong learning and an extra EUR 300m for research and development.

German centre-right MEP Reimer Böge said the additional money would enable 40,000 more students to take part in the Erasmus exchange programme.

A range of programmes on health and consumer protection, youth and culture also received a boost of EUR 500m while the parties agreed an extra EUR 1bn for the EU's neighbourhood and partnership instrument (up EUR 200m) and EUR 800m more for foreign policy missions.

But under the deal EUR 2bn allocated in the December agreement was moved off the budget as funding for the emergency aid reserve (EUR 1.5bn) and for EU officials' pensions (EUR 500m).

The presidency and the Parliament also agreed to increase European Investment Bank funds by EUR 2.5bn to provide loans for research and development and small- and medium-sized enterprises.

MEPs had to make a number of concessions in other areas as part of the agreement. They failed in their attempt to convince the Council to increase the annual flexibility instrument to cope with unforeseen foreign policy emergencies beyond the current level of EUR 200m a year. Unspent funds from this instrument will be rolled over for two years.

They also failed to win influence over the review of all aspects of the EU budget - both spending and resources - to take place in 2008-09.

EU governments also rejected a request from the Parliament to provide formal declarations that they were properly monitoring how EU funds were spent, promising instead to work towards getting the Court of Auditors to approve the Union's annual accounts for the first time.

National governments are expected to approve the agreement with the Parliament in the next few weeks while MEPs should endorse the package at the May plenary session in Strasbourg.

Article reports on an agreement reached between Members of the European Parliament and the Austrian Presidency of the Council on the EU's multiannual budget for 2007-13. Negotiations were concluded late on 4 April 2006 with the agreement on a €4 billion-increase compared to the deal reached between Member States' Governments at the December 2005 European Council. National governments were expected to approve the agreement with the Parliament within few weeks while MEPs were to endorse the package at the May 2006 plenary session in Strasbourg.

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