Tuesday

19th Mar 2024

France and Poland main winners in first round of EU budget talks

  • Prospects for a deal on Friday are dimming (Photo: European Council)

The first day of talks between leaders on the €1 trillion EU budget framework broke up around midnight on Thursday (22 November) with France and Poland the main beneficiaries from a new compromise proposal.

Following criticism over his initial plans to slash agricultural subsidies and regional development funds, European Council President Herman Van Rompuy presented leaders with a fresh compromise text of figures on which to base negotiations.

Read and decide

Join EUobserver today

Get the EU news that really matters

Instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

The draft paper keeps to the same overall top-line figure of 972 billion stated in the proposal sent to national capitals last week, equivalent to 1.01% of GNI.

However, in a bid to pacify member states, it redistributes the cuts between budget headings.

Agriculture is the main beneficiary with an €8 billion increase, while intensive lobbying by the 15-nation "Friends of Cohesion" group led by Poland saw it rewarded by a €10.6 billion increase in funds.

The EU's own projects aimed at promoting jobs and growth are set to be the main losers from the new proposal.

The flagship Connecting Europe Facility, which focuses on infrastructure projects to develop Europe's transport, energy and digital networks would be cut a further €5 billion to €41 billion.

The Galileo space programme would also lose an extra €350 million. The irony of EU leaders cutting back on their own growth strategy, just months after agreeing on a €60 billion ' growth and jobs pact in June, was not lost on officials.

Meanwhile, the "Europe in the world" heading, which covers spending in Croatia and other candidates for EU membership as well as EU aid to the world's poorest countries is to suffer a further €5 billion cut.

The move is likely to deepen concerns of NGOs.

Commission President Jose Manuel Barroso earlier said that development aid could be among the biggest losers from the negotiations. Despite being in the firing line of a handful of the net contributor countries, led by the UK and the Netherlands, the draft leaves administrative spending in the EU institutions untouched.

As expected, UK Prime Minister David Cameron put forward a more ambitious cuts programme with a €890 billion budget. However, EU officials expect Cameron to accept a compromise based on the latest draft.

For his part, European Parliament President Martin Schultz told reporters that a comprehensive budget agreement is unlikely at this summit.

"There seems to be very little room from manoeuvre," he commented, adding that "what is probable is that there will not be an agreement."

Schultz also reiterated that the assembly would oppose any budget lower than the €972 billion Van Rompuy headline figure. "There is no chance the European Parliament will go along with this,' he said.

With the one-to-one "confessional' meetings between leaders and European Council President Herman van Rompuy delaying proceedings, the first formal session of negotiation lasted little over an hour, with the summit negotiations set to resume at midday on Friday (23 November).

If the summit breaks off without agreement, EU leaders are likely to come together in early in spring next year. However the later the deal, the higher the timetable pressure to get all the corresponding pieces of spending legislation agreed with parliament by end of 2013.

Opinion

EU budget: Don't cut the left arm to save the right

EU citizens will be the biggest losers of the power struggle on the Union's budget for 2014-2020, as any cuts will stifle growth and jobs, write MEPs Joseph Daul and Reimer Boege.

Leaders break off EU budget talks

EU leaders on Friday decided to break off 2014-2020 budget negotiations after a second compromise attempt failed to reconcile those wanting cuts and those asking for more money.

Opinion

How the EU can raise its game in the Middle East

Could the EU repair its reputation and credibility by taking action on Gaza? EU foreign affairs chief Josep Borrell, Spain, Belgium and Ireland, have worked hard to repair the damage, but have faced political headwinds due to internal divisions.

Latest News

  1. Borrell: 'Israel provoking famine', urges more aid access
  2. Europol: Israel-Gaza galvanising Jihadist recruitment in Europe
  3. EU to agree Israeli-settler blacklist, Borrell says
  4. EU ministers keen to use Russian profits for Ukraine ammo
  5. Call to change EIB defence spending rules hits scepticism
  6. Potential legal avenues to prosecute Navalny's killers
  7. EU summit, Gaza, Ukraine, reforms in focus this WEEK
  8. The present and future dystopia of political micro-targeting ads

Stakeholders' Highlights

  1. Nordic Council of MinistersJoin the Nordic Food Systems Takeover at COP28
  2. Nordic Council of MinistersHow women and men are affected differently by climate policy
  3. Nordic Council of MinistersArtist Jessie Kleemann at Nordic pavilion during UN climate summit COP28
  4. Nordic Council of MinistersCOP28: Gathering Nordic and global experts to put food and health on the agenda
  5. Friedrich Naumann FoundationPoems of Liberty – Call for Submission “Human Rights in Inhume War”: 250€ honorary fee for selected poems
  6. World BankWorld Bank report: How to create a future where the rewards of technology benefit all levels of society?

Stakeholders' Highlights

  1. Georgia Ministry of Foreign AffairsThis autumn Europalia arts festival is all about GEORGIA!
  2. UNOPSFostering health system resilience in fragile and conflict-affected countries
  3. European Citizen's InitiativeThe European Commission launches the ‘ImagineEU’ competition for secondary school students in the EU.
  4. Nordic Council of MinistersThe Nordic Region is stepping up its efforts to reduce food waste
  5. UNOPSUNOPS begins works under EU-funded project to repair schools in Ukraine
  6. Georgia Ministry of Foreign AffairsGeorgia effectively prevents sanctions evasion against Russia – confirm EU, UK, USA

Join EUobserver

EU news that matters

Join us