MEPs increase say in foreign policy in 2007 budget

BRUSSELS - EU member states and MEPs have reached a compromise deal on the next year's EU budget, with national governments agreeing to consult the European Parliament on budgetary implications of foreign policy activities and on the appointment of special envoys abroad.

The agreement adopted on Wednesday (29 November) comes after months of wrangling between member states, the European parliament and the European Commission, with the final package amounting to €115.5 billion to be spent on EU projects next year.

Compared to this year, the 27-strong EU - enlarged next year by Bulgaria and Romania -will see a budget increase of almost €3.5 billion.

The negotiations were particularly complicated due to controversy over a Finnish presidency plan to slash the commission's administration budget by €56 million.

The EU executive argued the cuts would have prevented it from recruiting 250 new staff from the two newest Balkan newcomers - as well as from other EU member states that entered the bloc in 2004.

But Helsinki's proposal was rejected last week, with both MEPs and some countries - notably Italy, Spain and Poland - opposing it.

In a bid to save the idea, however, the Austrian delegation this week tabled a declaration supported by several countries – such as Germany, Sweden and Slovakia - stating that the EU should by end of April 2007 outline a plan on how to cut the administration costs.

The document - set to be formally adopted along with the budgetary deal on Thursday - argues that EU bodies should boost their "productivity gains" and table "targeted measures" in areas such as staffing levels, building policy, tenders and IT investment.

More say for MEPs over foreign policy

As part of the compromise deal, MEPs have secured a boost in their say on financial and staff aspects foreign policy - an area currently primarily governed by the member states.

The parliament wants to be consulted on the appointment of EU special representatives abroad as well as on the financial implications of external missions, such as an upcoming EU mission in Kosovo.

In return, MEPs agreed to lift their blockade on funds for the EU's common foreign policy from €72.6 million as approved at the EP's first reading to almost €160 million.

According to the parliamentary rapporteur on the budget, Polish centre-right MEP Janusz Lewandowski, the agreed deal has incorporated the principle that the EU's projects "which are not functioning effectively should be deleted and replaced by successful ones."

MEPs are set to approve the 2007 budget in the budget committee on Thursday, a plenary vote scheduled for mid-December.