Battle for budget

Magda Dąbska

European countries have two weeks to gain a compromise in budgetary issues. The Multiannual Financial Framework 2014-2020 has entered in its final stage and become an object of fierce discussion between European politicians.

The Commission has proposed an overall ceiling of € 1 033 billions under five headings: smart and inclusive growth (48%), sustainable growth: natural resources (37%), global Europe (7%), administration (6%), security and citizenship (2%). The proposal of Cypriot Presidency postulates savings at least 50 milliards euros and budget of the EU in 2014-2020 should not exceed € 980 mlds. The main areas touched by cuts are: cohesion policy ( € -11 mlds), Common Agriculture Policy (€ -9 mlds), competition (€ -19 mlds) and Foreign Policy of the EU. In that case, Poland will receive € 75 mlds euros. It means that Poland will get € 5 mlds  less for projects realized within Structural Funds and Common Agricultural Policy.

However, the Cypriot proposal is unlikely to be accepted by other European countries. Even, within Commission and European Parliament, there is a criticism towards these cuts. Some of the MEPs say that the European Union needs ambitious budget that will stimulate a growth in far- reaching perspective. Therefore, the reduction in area of Research and Innovation at the expense of Common Foreign Policy should not be accepted.

Some trends among net contributors can be observed during this discussion. There is a group of countries in favour of radical cuts like United Kingdom, Sweden and Denmark who want to reduce the budget by 200 mlds euros. As a last resort, the UK would like to maintain the budget on current level or increase it by 2% at the very most. Germany, France, Netherlands, Austria and Finland belong to fraction of “moderate cuts”, and they want to bring the budget down by 100 mlds euros. The last group, where is Poland and 14 other countries, is satisfied with Commission’s proposal, and it does not want any cuts.

Two weeks short of the meeting of the European Council the situation seems be stalemate. On one hand, the Commission rejected the Cypriot budget proposal. On the other hand the British prime minister- David Cameron does not agree with Commission’s version of budget, and he warned about his veto. Will the European politicians make a concession or a system of provisional twelfths will be applied?

Sources

  1. http://europa.eu/newsroom/highlights/multiannual-financial-framework-2014-2020/index_en.htm
  2. http://www.cy2012.eu/index.php/en/news-categories/areas/general-affairs/press-release-cyprus-presidency-presents-revised-negotiating-box-for-the-multiannual-financial-frame
  3. http://www.euranet.eu/eng/content/view/full/165212
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