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BackYesterday, the Irish Council Presidency, Commission President Barroso and European Parliament President Schulz surprisingly reached agreement on the EU Budgets for 2014 to 2020. Having agreed on a payment volume of over 908 billion Euros over a period of seven years, the Council got exactly what it wanted. In contrast, the European Parliament completely lost its credibility during the negotiations on the EU Financial Framework - instead of the 5 % increase the Parliament had demanded, the EU Budget has been cut by 5 %. However, the European Parliament has still to vote on the result of the negotiations in the plenary session next week. Surprises are not expected.
Whilst in the EU Financial Framework 2007-2013, the EU Budget was still 1,00 percent of the gross national income of the Member States, over the next seven years, the average volume of the EU Budget will only show a payment volume of 0,95 Percent of GNI. This means in absolute figures a total of 1.024 billion Euros at current prices from 2014 to 2020. The agreement between the three EU institutions now provides for the payment of 6 billion Euros to tackle youth unemployment immediately in the first two years of the new EU Financial Framework. Apart from that, another interim report is planned towards mid-term of the EU Financial Framework, which shall depict how the funds from the EU coffers have been spent so far.
Anticipating this result, EU Budget Commission Janusz Lewandowski presented the EU Budget Proposal for 2014 already on Wednesday. Lewandowski explained that 52 percent of the available funds to handle the old programme from the 2007 to 2013 period are still being used during the first year of the new financial period. Further 40 percent are earmarked for payments for the agricultural sector and administration. Only 8 percent of the funds - about 11 billion Euros - will be used for new programmes next year. Overall, a budget volume of about 136 billion Euro has been planned for 2014; about 6 billion less than this year.
The MEPs used the visit of the EU Budget Commissioner to once again voice their displeasure about the Council in respect of the Multiannual Financial Framework. Many EU programmes had been cut and many initiatives were hardly funded at all. In fact, very little money had been made available for core issues of the European Union, such as tackling poverty and unemployment: just about 5.7 billion Euros had been earmarked for the platform against poverty; the “Agenda for New Skills and Jobs” would receive 10.1 billion. 11.8 billion Euros shall be spent on the programme for “An Innovative Union”. Even if it is the objective of the European Union to ensure more investments and growth - the now adopted EU Budget will hardly make this happen.
Anticipating this result, EU Budget Commission Janusz Lewandowski presented the EU Budget Proposal for 2014 already on Wednesday. Lewandowski explained that 52 percent of the available funds to handle the old programme from the 2007 to 2013 period are still being used during the first year of the new financial period. Further 40 percent are earmarked for payments for the agricultural sector and administration. Only 8 percent of the funds - about 11 billion Euros - will be used for new programmes next year. Overall, a budget volume of about 136 billion Euro has been planned for 2014; about 6 billion less than this year.
The MEPs used the visit of the EU Budget Commissioner to once again voice their displeasure about the Council in respect of the Multiannual Financial Framework. Many EU programmes had been cut and many initiatives were hardly funded at all. In fact, very little money had been made available for core issues of the European Union, such as tackling poverty and unemployment: just about 5.7 billion Euros had been earmarked for the platform against poverty; the “Agenda for New Skills and Jobs” would receive 10.1 billion. 11.8 billion Euros shall be spent on the programme for “An Innovative Union”. Even if it is the objective of the European Union to ensure more investments and growth - the now adopted EU Budget will hardly make this happen.