Parliament seals 2014 EU budget and the spending ceiling until 2020

European Parliament. Extraordinary meeting of the Committee on Budgets on Multiannual Financial Framework 2014-2020 in the EP in Strasbourg – The Committee first heard as statements by Alain Lamassure (EPP, FR), Chair of the EP Committee on Budgets and a cutaway by MEP Ann Jensen, EP rapporteur on the EU budget for 2014. (EP Audiovisual Services

European Parliament. Extraordinary meeting of the Committee on Budgets on Multiannual Financial Framework 2014-2020 in the EP in Strasbourg – The Committee first heard as statements by Alain Lamassure (EPP, FR), Chair of the EP Committee on Budgets and a cutaway by MEP Ann Jensen, EP rapporteur on the EU budget for 2014. (EP Audiovisual Services).

Finally, the European Parliament, after obtaining from the Council (that is the member state governments) what was possible to squeeze out in these times of widespread austerity, yesterday approved both the 2014 budget and the 2014-2020 financial framework, which sets limits on EU’s spending for the next seven years. Yesterday, the Budgets Parliamentary Committee voted both those financial exercises.

In detail, yesterday, Parliament’s Budgets Committee approved the EU’s long-term budget (Multi-annual Financial Framework – MFF) for 2014-2020 and 2014 budget, along the lines of the deal struck earlier this week between the legislators and the member states. Parliament’s final votes on these budgets are scheduled for next week in the full house. Presumably, the largely positive vote in the Committee anticipates the plenary’s decision. The MFF was approved by 28 votes to 5 with no abstentions, while the draft amending budget 9 for 2013 (flood compensation, shortfalls in research) approved by 33 votes to 2 and 0 abstentions.

Amending budgets

Amending the 2013 budget was at the centre of disagreement between the Parliament and the Council. It concerned the built in shortcoming of EU budgetary exercises. To explain this, it is needed to analyse, in short, the very structure of EU budgets. Every November, the Council and the Parliament approve next year’s financial balances, which contain two main items; actual spending and appropriations (undertaking of liabilities). The latter are usually larger than the former. As the years pass those differences accumulate.

In September 2013 there were still unpaid bills of €3.9 billion, pending even from the 2012 exercise. This is money owed to member states, local authorities and other entities for having completed projects co-financed by the EU. Already at the beginning of 2013, the Commission had estimated that all the unpaid bills amounted to €11.2 billion, not at all a small amount. Because of this oversized magnitude of pending obligations, the Parliament feared that the Council will try to cover a part of it from 2014 resources, thus even further reducing the already cut down next year’s budgetary spending.

Insistent legislators

The Parliament has consistently stressed the need to fill the entire payment gap for 2013 prior to agreeing on the MFF, the next long-term EU budget period starting in 2014. It didn’t make sense to agree on a budget for 2014 – the first year under the new MFF – if the previous year ends with a series of unpaid bills. When the Commission tabled its first request for additional funds (€11.2 billion), the Council proposed a two-tier approach: €7.3 billion were approved early this year and the outstanding amount (€3.9 billion) was left to be settled later on in the year.

At this point, it has to be clarified that, towards the end of 2012 when the 2013 budget was discussed and approved, the Parliament, the Council and the Commission had agreed to cover all those gaps within the following year. However, the Council while approving in July to pay €7.3bn, left the €3.9bn in the air. It was exactly the €3.9bn that separated the Parliament and the Council until this week.

In its resolution of 3 July 2013 regarding the overall 2014-2020 MFF spending, the Parliament had stressed that the €3.9 billion had to come through before the end of this year otherwise the Parliament would not give its green light to the MFF and the 2014 budget. Time passed and November came. Finally, after negotiating through last Monday night, the Parliament and the Council struck a deal early on Tuesday, which remedies that €3.9bn in payment shortfalls during the current fiscal year.

In short, last Tuesday morning everything was clarified and yesterday’s vote in the Budgets Parliamentary Committee was a rather typical procedure.

 

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

Benefits of rural migration effect often overlooked, new UN report suggests

Politicization of migrant ‘crisis’ in Hungary making them scapegoats, independent UN human rights expert warns

What do the economic woes of Turkey, Argentina and Indonesia have in common?

Latvian economy is thriving, but boosting productivity, improving social protection and transitioning to a low-carbon productive model are vital for sustainable and inclusive growth

EU elections: The louder the threats and the doomsaying the heavier the weight of the vote

Bundestag kick starts the next episode of the Greek tragedy

The Europe we want: Just, Sustainable, Democratic and Inclusive

Blockchain can change the face of renewable energy in Africa. Here’s how

FROM THE FIELD: Weather reports come to aid of Uganda’s farmers

Concern rising over fate of Rohingya refugees sent home by India: UNHCR

The MWC14 Sting Special Edition

We don’t need to ban plastic. We just need to start using it properly

Huawei answers allegations about its selling prices

How telehealth can get healthcare to more people

Eurozone stuck in a high risk deflation area; Draghi expects further price plunge

EU-Japan trade agreement enters into force

UN agency chief calls Ethiopia’s revised refugee law ‘one of most progressive’ in Africa

Digital transformation and the rise of the ‘superjob’

The next Google in biotech: will it be Chinese?

DR Congo: efforts to control Ebola epidemic continue, UN food relief agency doubles assistance to affected people

Amsterdam is getting a 3D-printed bridge

I cycled over 6,000km across the United States to document climate change. Here’s what I learned

3 ways to fight stress at work

Germany’s strong anti-bribery enforcement against individuals needs to be matched by comparably strong enforcement against companies

We all have a ‘hierarchy of needs’. But is technology meeting them?

Technology can help us end the scourge of modern slavery. Here’s how

Saudi Arabia, China, among 14 nations under UN human rights spotlight: what you need to know

European Parliament and Eurovision sign partnership for European Elections

France is building a village for people with Alzheimer’s

Greece’s last Eurogroup or the beginning of a new solid European Union?

UN ‘prioritizing needs’, ramping up aid, as Hurricane Dorian continues to batter the Bahamas

Gender equality and medicine in the 21st century

“Leaked” TTIP document breaks post 8th negotiations round silence and opens door to critics

‘Crippling to our credibility’ that number of women peacekeepers is so low: UN chief

Women must be at ‘centre of peacekeeping decision-making’, UN chief tells Security Council

This app lets you plant trees to fight deforestation

Africa Forum aims to boost business, reduce costs, help countries trade out of poverty

EU–US: What is the real exchange in a Free Trade Agreement?

Eurozone: Even good statistics mean deeper recession

The EU Commission vies to screen Chinese investment in Europe

With security improving in DR Congo’s Kasai, thousands of refugees head home from Angola

Partnerships key to taking landlocked countries out of poverty: UN Chief

These are the world’s 20 most dynamic cities

Biggest London City Banks ready to move core European operations to Frankfurt or Dublin?

New Erasmus: more opportunities for disadvantaged youth

What is digital equality? An interview with Nanjira Sambuli

‘Race against time’ to help women who bore brunt of Cyclone Idai: UN reproductive health agency

At UN, Cuba slams US ‘criminal’ practices undermining country’s development

UN chief hopes for new agreement after Israel concludes international observation mission

Migrant workers sent more money to India than any other country last year

Security Council condemns ‘heinous and cowardly’ attack in Iran

Opening – Parliament expresses support for victims of Fuego volcano in Guatemala

Kenya wants to run entirely on green energy by 2020

A Sting Exclusive: “The Digital Economy and Industry are no longer opposing terms”, Commissioner Oettinger underlines live from European Business Summit 2015

Can Obama attract Iran close to the US sphere of influence?

This is what the world’s CEOs really think of AI

COP21 Breaking News: “We must accelerate the process”, Laurent Fabius cries out from Paris

Migrant caravan: UN agency helping ‘exhausted’ people home

European Citizens’ Initiative: Commission registers ‘Mandatory food labelling Non-Vegetarian / Vegetarian / Vegan’ initiative’

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s