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Nine EU countries call for slim EU budget

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Published 12 September 2011, updated 13 September 2011

Nine EU countries are expected to table an official position slamming the European Commission's proposal for the bloc's long-term budget for the period 2014-2020, according to a draft seen by AFP agency.

Ministers from nine EU countries including Britain, France and Germany are expected to sign up to a position paper slamming the Commission's plans for a 2014-2020 budget seen as bloated in times of economic austerity, the AFP sources said on 10 September.

The draft document says "the Commission proposal is too high. The increases of spending over the next multi-annual financial framework are significantly in excess of what is needed for a stabilisation of the European budget".

"Member states are making considerable financial efforts to support Europe and at the same time are undertaking tough consolidation efforts," it adds.

Among the other countries involved are net contributors to the European Union budget including Austria, Denmark, Finland, Italy, the Netherlands and Sweden, which is hosting a ministers' meeting in Brussels today (12 September) to discuss the issue.

"Total spending for the 2014-2020 period needs to be substantially lower," the draft document states. "We need to make the best use of the European budget to create better conditions for growth and make Europe more competitive. We need to spend better, not to spend more."

On 29 June the Commission proposed to increase the EU budget from the current €976 billion to €1.025 billion for the next seven-year period, which starts in 2014 (see 'Background').

However, the Commission proposal is seen as the starting point of what promises to be drawn-out negotiations, with a final decision not expected before the second half of 2012.

The 2014-2020 budget is on the agenda of talks between Europe ministers today (12 September).

Positions: 

In response to a question on the reports, the Commissioner for Financial Programming and Budget Janusz Lewandowski said "A first evaluation of our proposal was done [at the June ministers of economy meeting] in Sopot, quite positive."

Downplaying the importance of the letter, he added that "I do believe that what was put on the table at the end of June is the real response."

Similarly, Mikołaj Dowgielewicz, secretary of State for European Affairs of Poland, which currently holds the presidency of the EU, argued that "I think if you look at this text that was leaked this morning, you would discover that there is absolutely nothing surprising."

"Those delegations expressed those views in the discussions but it doesn't really influence the course of negotiations on the MFF because what you have in the negotiations is now a technical process that has to be advanced," he said.

Dowgielewicz went on to note that decisions in this process would not be taken this year.

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Under fire: Commission President José Manuel Barroso
Background: 

On 29 June José Manuel Barroso, president of the European Commission, proposed to increase the EU budget from the current €976 billion to €1.025 billion for the next seven-year period, which starts in 2014.

This represents a 4.8% increase, which is beyond the average 2% inflation recorded in the last decade.

In a bid to woo member states that are opposed to further rises in the EU budget, the Commission proposed to reduce national contributions, in line with austerity measures adopted across Europe.

In a bid to reduce contributions that come directly from national coffers, the Commission suggested levying new taxes directly, a proposal that was strongly rejected by the UK, which labelled it "unrealistic".

The EU tax could take several forms: a tax on air transport or a share of new financial, corporate or energy taxes, as well as an EU VAT.

A high-level conference devoted to the EU's next long-term budget is due to take place in late October, Barroso recently announced.

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