13/12/2010

EU Budget 2011 - Parliament votes on new draft budget

By Katarzyna Klaus, Polish Press Adviser

The European Parliament is set to vote on a new draft budget for the EU in 2011. The new budget was presented on 26 November by the European Commission after negotiations between the Parliament, Council and Commission on a previous budget failed. MEPs have now agreed to set the increase in payments at 2.91% in comparison to 2010, on condition the Council agrees to their political requests (an active role of the European Parliament in the negotiations of the next Multiannual Financial Perspective, an agreement on genuine flexibility mechanisms and a proposal from the European Commission on new own resources for the EU by 1 July 2011). The Parliament's resolution stresses its main objective - "to provide the EU with a sustainable budget that can be fully and predictably implemented from the beginning of a financial year".

Parliament's priorities

The draft budget 2011 to be voted on Wednesday 15 December in plenary takes on board all the increases for the priority lines as adopted in plenary reading on 20 October. It means that such programmes as Youth in Action, Lifelong Learning Programme, Erasmus Mundus, as well as assistance to Palestine will receive proper funding next year.

TIMELINE:

April - Commission's draft budget

In April the Commission presented the 2011 draft budget under the theme "The future beyond the crisis - laying the cornerstone for smart, sustainable and inclusive growth". It proposed €142.6 billion in commitments (up 2.2% on 2010) and €130.1 billion in payments (up 5.9%).

The planned 5.9% increase in payment appropriations was welcomed by Polish MEP Sidonia Jędrzejewska, Parliament's Rapporteur for the EU 2011 budget, but she expressed disappointment with the increase in commitments.

"The most important programme for youth is the lifelong learning programme, which finances the Erasmus programme. This is the flagship for me, since it means less well-off students can also afford to go abroad. If I see the planned increase of 2.2% - this does not even cover the inflation rate - it is no improvement at all," said Ms Jędrzejewska.

August - Council's position

In August the Council slashed 3.6 billion Euros off the EU budget for 2011 proposed by the European Commission. Member States stressed the need for austerity in the EU budget, because of the economic crisis. One billion euros less than the European Commission wanted for the EU's poorest regions, €13 million less for schooling EU officials' children and a near freeze on recruitment in Brussels are among the 2011 EU budget proposals put forward by Member States.

October - EP adopts draft budget 2011

"The budget of the EU is not similar to a national budget, it is oriented towards investment and is a tool for fighting the crisis. I hope we will have an open and direct dialogue with the Council, so we can successfully adopt a wise, sensible budget for 2011. The European Parliament has demonstrated much self discipline by voting on its reading within the margins of the current Multi-annual Financial Framework (MFF)," highlighted Sidonia Jędrzejewska MEP, as Rapporteur.

November - tough negotiations

In November the negotiations for the 2011 EU Budget entered a decisive phase. The two arms of the EU budgetary authority (Council and Parliament) were to establish a common position that should reconcile the European Parliament's call for a 6.19% increase in payments and the Members States' declaration on not going above 2.91% growth compared to 2010. The increase proposed by the Parliament reflected the life cycle of the EU's key projects, which will enter their fifth year in 2011. On 16 November negotiations collapsed. "The failure to agree on the 2011 EU Budget is very bad news for the European Union. The Council's refusal to start official discussions on future financing of EU policies, the Parliament's role in the negotiations of the next Multiannual Financial Framework or the own resources issue is regrettable. Unfortunately, several Member States do not want to discuss the implementation of the Lisbon Treaty," commented Siodnia Jędrzejewska. "There is a growing discrepancy between what the Member States expect the EU to do and the willingness of the Member States to finance those new tasks" - she stressed.

December - Parliament's position

Sidonia Jędrzejewska's proposal on the new draft budget was adopted in the Budget Committee on 8 December. The European Parliament will have its final vote on the 2011 budget on 15 December. If plenary agrees with the vote in Committee, the budget will be passed and the dossier will go back to the Council for their final approval.