MEPs set for new battle with governments over Kosovo aid

Date: 06/01/2000

By Simon Taylor

EU governments and MEPs are set for a fresh battle over funding for reconstruction in Kosovo and other projects in the western Balkans in the spring, despite clinching a last-minute deal on the Union's budget for 2000 last month.

Member states and the European Parliament reached an 11th-hour agreement on the spending plans for this year just before the Christmas break, ensuring that €360 million will be provided for reconstruction work in Kosovo in 2000.

But the deal was only struck after the Parliament secured a commitment that the European Commission would produce a new proposal by April for a budget for projects in the Western Balkans covering several years. This was one of the assembly's key demands during last year's fierce tussles between MEPs and EU finance officials over the spending plans for 2000.

"We need a serious multiannual programme for the Balkans, with more funding," insisted German Socialist MEP Jutta Haug, who is responsible for drawing up the Parliament's opinion on the 2001 budget.

Jean-Jacques Bourlanges, the French centre-right MEP who masterminded the assembly's approach to the 2000 budget, denied that the real battle had been delayed until the spring. He insisted that the assembly had scored a significant victory by securing a commitment from the Council of Ministers to raise the ceiling on funds for external relations projects.

But national finance ministry officials are warning that governments are in no mood to agree to any major increases in funding for the Balkans simply because the Commission has agreed to table a new proposal.

Under the deal reached late last month, the Parliament and EU governments agreed a budget of €93.281 billion for 2000, 3.7% lower than the previous year's amount.

Farm spending will account for the largest share of the money at €40.99 billion, with €32.68 billion allocated to the regional aid programme. The total budget for external relations projects has been set at €4.86 billion.

MEPs have claimed victory in their battle to stop money for Kosovo being raised by making substantial cuts in development and human rights programmes. The €360 million for this year will instead be found by carrying over unspent funds from 1999 and moving money from other programmes designed to help countries in the Balkan region.

In a significant concession to governments, MEPs agreed to use €200 million from a special flexibility reserve intended to cover the costs of unforeseen crises such as Kosovo.

EU governments and MEPs are set for a fresh battle over funding for reconstruction in Kosovo and other projects in the western Balkans in the spring of 2000, despite clinching a last-minute deal on the Union's budget for 2000 in December 1999.