EurActiv: ‘Brexit’ and ‘future of Europe’ muddle EU’s budget decision-making

30 May 2017

Günther Oettinger presented the draft EU budget for 2018, acknowledging decision-making difficulties. He said the next long-term budget should be tabled by next summer, to take into account the Brexit context and the decisions on the future of the Union.

[...] The draft budget for 2018 contains €161 billion in commitments and €145.4bn in payments. The Commission labelled it an exercise in stimulating job creation, especially for young people, and boosting growth and strategic investments. Commitments for 2018 are up 1.4% from 2017, and payments up 8.1% from 2017.

Commitments are the total volume of promises for future payments that can be made in a given year. Payments are the actual money paid in a given year from the EU budget to cover commitments. Commitments must be honoured with payments, either in the same year or, particularly in the case of multi-year projects, over the following years.

Replying to a question regarding the 8.1% increase in payments, he explained that this was not a hike for the UK before Brexit, but a result of the 2014-2020 EU structural and investment programmes reaching cruising speed in 2018, after a slow start in the first years. [...]

One novelty in the draft 2018 budget was an envelope of €40 million for defence research, which in the German Commissioner’s words opened the chapter of common financing for a future defence policy.

He said that more flexibility between financial years and within a financial year, as well as between different budget headings, would be achieved when the mid-term budget review was approved. Currently the midterm review of the 2014-2020 budget is blocked by the UK.

“The UK government has told us, and we respect this, that in the UK there is a principle that during a general election campaign the government cannot take any decision of political significance,” Oettinger said.  He insisted that the Commission had heard only “formal reasons” for this situation, and no objections of substance, therefore he expected unanimity to be found in the Council after 8 June, even if London abstains.

Midterm review to be adopted with 2018 budget

He also said that the expectation was that the draft budget for 2018 would be adopted together with the midterm review, which would allow the EU executive to meet its duties and tasks. But he added that in a parallel communication the Commission had informed the Parliament and the Council of “the huge disadvantages” that could arise in case of a UK veto after the 8 June elections.

EURACTIV asked Oettinger how he expected the UK to approve the €40 million for research in the defence sector, as the country opposes a coordinated EU defence strategy. The Commissioner replied that a reflection paper was in preparation, focused on introducing efficiency through further cooperation in defence. However, he said nothing regarding the UK positions.

Asked about the next multiannual EU budget, which will start in 2021 and will run for five, six or seven years, Oettinger said the Commission was under the obligation to present a draft by the end of the current year, but there were two obstacles. The first was the Brexit process, and the second the discussion about the future of Europe, which could lead in different directions: “more” or “less” Europe would each have direct implications on the budget.

Of all five scenarios proposed by Commission President Jean-Claude Juncker for the way forward after Brexit, the real scenario is Number 3: “Those who want more do more,” which is another way of saying that the EU will be multi-speed, EURACTIV.com was told.

He said he would hold discussions with ministers of the member countries and with the European Parliament on whether it would not be wiser to submit a budget by summer next year, which would take stock of the consequences of Brexit and of the discussions on the future of Europe. [...]

Full article on EurActiv

 


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