2007 budget: higher expenditure but with better value for money

MEPs say the overall payments figure for next year's budget should be around €121.6 billion (1.04% of the gross national income of the EU-27), as compared with the €114.61 billion (0.98% of GNI) proposed by the Council at its first reading in July. This difference will be the key issue at the conciliation negotiations in late November.

 

 

The committee backed the new strategy of ensuring “value for money” proposed by James ELLES (EPP-ED, UK), the general rapporteur on the budget.  For a number of budget lines, accounting for around €400 million, 30% of their funds should be placed in reserve, say MEPs.  The funds would be released only when the European Commission has proved that the programmes are providing good value. 

 

According to James Elles, "At the start of a new financial perspective, it is vital to tackle seriously those areas in the budget where particular lines are suspected to have weaknesses in implementation". 

 

Mr Elles has proposed that cost-benefit studies be carried out in policy areas including the common foreign and security policy (CFSP) and communication policy.   Questions have also been asked about the value for money of policies and programmes such as the European Neighbourhood and Partnership policies, research for small firms and Euratom/nuclear fusion and radiation protection. 

 

This strategy will also enable Parliament to emphasise its own policy priorities. In particular, the committee is calling for increased funding for the Lisbon agenda, cohesion and external action.

 

Programmes which would benefit include transeuropean networks, nuclear safety and Life+.

Lastly, the value for money strategy is intended to pave the way for the mid-term review of the budget scheduled for 2008-2009 which was agreed during the negotiations on the 2007-2013 financial perspective.

 

 

MEPs believe the heading used to fund EU action outside its borders (The EU as a global partner) is likely to be underfunded in 2007-2013, as it was in the last financial perspective.

 

However, the Budgets Committee does not want the flexibility instrument to be used, by contrast with previous years. Instead it voted for funds to be redeployed between budget lines.

 

The committee is seeking increases in areas including financial assistance for Palestine (+ €15 million in commitments, making a total of €173 million) and for the countries "to the east of Jordan" (+€15 million). In addition, €100 million is earmarked for reconstruction in Afghanistan and placed in a special line created for this purpose.

 

This money would be found by slashing by €86.6 million - i.e. by 50% - the total CFSP budget. It should be noted that Parliament is still calling on the Council for an ongoing dialogue between the institutions on the main issues and fundamental choices of the CFSP.

 

 

For Heading 5 (Administrative expenditure), the Budgets Committee wishes to restore the level of funding suggested in the Commission's preliminary draft budget. MEPs thus oppose the Council's proposal to reduce the number of posts at the Commission over the next few years. However, they want to place €50 million in reserve.  The release of these funds would be subject to a number of conditions, including a "screening" exercise, or assessment, of the Commission's staff needs.

 

 

As regards "pilot projects and the preparatory instruments", members of the committee have at this stage adopted a list of projects, including Euroglobe (a pilot project for an itinerant Globe theatre designed to promote a European public forum for debate, culture and study), an anti-terrorism database and better business and scientific links with China and India.

 

 

Lastly, turning to the EU agencies, the Budgets Committee proposes setting their budget at the level agreed for 2006, plus an increase of no more than 2%. The increase for 2007 will go into the reserve pending receipt of a justification for the rapid increase in the agencies' budgets. A notable exception is the Frontex agency, whose budget would be increased by €14 million to fund patrols on the EU's borders.