EU Parliament passes first cut in seven-year budget

The EU Parliament passed on Tuesday the new seven-year budget worth EUR 960 million in commitment, representing the first cut in the history of the economic block of 28 countries.

The budget running through to 2020 fell by over EUR 34 billion, pushed by EU members that called for austerity measures.

Herman Van Rompuy, president of the European Council, twitted the new multiannual financial framework (MFF) was “mondernised and realistic”, marking a clear shift towards investments for growth and jobs.

Romania has successfully negotiated an 18 percent hike in funding in the new budget to around EUR 40 billion, comprising the common agricultural policy, the structural and the cohesion funds. The government is seeking greater involvement of banks in the next MFF, in a bid to increase the absorption of EU funds, which is set to reach 30 percent by year end in the current EU budget.

“The European Parliament would have preferred a much more ambitious MFF targeted more towards the key challenges facing the EU today. A more ambitious MFF would have seen higher amounts available in the EU budgets and would have boosted a job-rich recovery,” commented Martin Schulz, president of the EU Parliament.

The Parliament passed in the new budget a “revision clause”, requiring the European Commission, the executive arm of the EU, to review the budget in 2016, with the option of revising it.

The new framework also provides greater flexibility for commitments, both between years and types of expenditure.

“The future budget will fulfill this role even better than in the past, because we have focused it more than before on areas where Europe adds value. We have modernized our policies, simplified our programs, and put a stronger emphasis on the quality of spending,” commented Jose Manuel Barroso, EC president.

The Council of Ministers is set to approve the new budget on December 2.

Ovidiu Posirca

DMCA

PROTECTED