MEPs set for foreign policy showdown

Date: 30/11/00

By Simon Taylor

GOVERNMENTS are to hold an urgent meeting with MEPs in the next two weeks in an effort to settle a dispute over the European Parliament's demands for more influence over the Union's spending on foreign policy projects.

In return for the agreement they reached last week on next year's spending plans, MEPs want the right to be informed about all decisions involving the EU budget before the monthly meeting of foreign ministers.

MEPs argue that the Parliament's power in fixing the annual budget gives it the right to be informed, but member states claim this would give the assembly new powers to decide foreign policy.

"Basically the Commission gave them everything they wanted but we have to see that the conditions do not go too far," said one Union finance ministry official.

As part of last week's deal on the 2001 budget, MEPs lifted their threat to block the release of around €1.5 billion unless the administration improves its efficiency in paying out money. But they linked the concession to EU governments and the Commission fulfilling ten conditions, some of which member states believe would give the Parliament too much power.

In addition to the demand that they be informed about foreign policy decisions, MEPs also insisted on a review of the structure of committees made up of member state officials which take hundreds of decisions every week.

Finance ministry officials said a meeting would be held between the French presidency, MEPs and the Commission in the next two weeks to try to hammer out a deal.

They fear that if an agreement cannot be reached on the conditions, problems could arise when the full Parliament votes on the 2001 budget at its plenary session on 15 December - even though MEPs have promised not to jeopardise next year's spending plans.

Under the terms of last week's deal, the assembly has won the right to review the Commission's progress in reducing the multi-billion-euro backlog of unspent funds and in implementing key elements of Vice-President Neil Kinnock's reform strategy by the middle of next year.

In return, MEPs lifted their threat to withhold funds from next year's budget, including money for the 375 extra staff which Kinnock says are essential for the Commission to cope with its workload.

Under the deal with the Commission and EU governments, total spending will rise next year by 3.5% to €92.6 billion .

Budget Commissioner Michaele Schreyer welcomed the agreement, which pledged €839 million for western Balkans states next year including €240 million for Serbia and €175 million for Kosovo. "The message is that the European Union is reliable, both politically and financially, and is able to provide support for a peaceful, economically stable future for the western Balkans," she said.

Governments are to hold an urgent meeting with MEPs in an effort to settle a dispute over the European Parliament's demands for more influence over the Union's spending on foreign policy projects. In return for the agreement they reached on next year's spending plans, MEPs want the right to be informed about all decisions involving the EU budget before the monthly meeting of foreign ministers.