23 October 2013

Plenary Session: Budget 2014 - Parliament reverses Council cuts in research and jobs expenditure

Parliament proposes a 2014 budget of €142.6 billion in commitments and €136.1 billion in payments. These amounts are down on this year's budget by €8.1 billion (commitments) and €4.3 billion (payments). The Council had previously reduced the Commission's budget proposal by €240 million in commitments and €1.06 billion in payments, to €141.8 billion and €134.8 billion respectively. 

Don't touch areas vital for economic recovery, MEPs say

In areas that MEPs believe are vital to boost the economy, such as the digital agenda, research, entrepreneurship and (youth) employment measures, Parliament followed the Budgets Committee's recommendations to reverse the €629 million payment cuts proposed by the Council in July and to top up the budget with an extra €34 million.

"Jumbo package" to be negotiated

Committee chair Alain Lamassoure (EPP, FR) cited the many outstanding budgetary issues. "We have negotiations ahead on a jumbo package, including the amending budgets for 2013, the 2014 budget and the MFF 2014-2020. Parliament is taking its responsibility this week by fast-tracking draft amending budget 6, which is needed to enable the Commission to pay the bills due from next month onwards. All of us, Council, Commission and Parliament, will now have to take their responsibilities in the difficult negotiations ahead. But let one thing be clear: Parliament will not allow deficits to be rolled over to next year." 

Next steps

Following the plenary vote, Parliament and Council have a 21-day "conciliation" period in which to strike an agreement. If conciliation produces an agreement, it will be put to a final vote at the November session.

Meanwhile Parliament is waiting for the Council to approve amending budget N° 8 (€3.9 billion). This amount is needed to cover this year's budgetary shortfall and the Council's approval of it is a prerequisite for Parliament to give its blessing to the EU's long-run budget for 2014-2020. Another amending budget (N°9) which should cover aid to Germany, Austria and Czech Republic to repair this year's flood damage and help Romania to cope with the aftermath of a drought, also still needs to be agreed.

Press release

Statement by Commissioner Lewandowski

"Today's vote on the European Parliament's position on Europe's budget for 2014 opens the start of the conciliation period between the Parliament and the Council.

I welcome the Parliament's vote that supports the Commission's estimates of needs for next year. This is a sensible position: as our heads of states and governments constantly call for more work and investment at EU level in areas such as growth and jobs or science and research, we cannot, as proposed by the Council, cut those very same areas in the EU budget.

As illustrated by the recent discussions concerning the needs to reinforce the 2013 budget, we cannot start the next financial period (2014-2020) with an annual budget that will evidently not cover all the needs.

The Commission's proposal for next year's budget was a serious cut compared to last and previous years, despite the increased competencies bestowed upon the EU; at the same time over 90 per cent of the EU budget consists of giving Europe's regions, businesses, scientists, students, farmers, NGOs a sorely needed financial boost. Therefore I can only hope that the conciliation period will produce an agreement on a budget that promotes growth, employment and innovation while enabling the EU to honour its commitments.

Statement

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