Monday

11th Dec 2023

Brussels has tough time justifying bigger budget

  • European Commission building in Brussels - the executive says that it is undertaking its own administrative cuts (Photo: guppiefish)

The European Commission on Wednesday (25 April) had an uphill struggle explaining why next year's EU budget needs to go up by 6.8 percent, even as it preaches austerity to member states.

The increase - to €138 billion from €129.1 billion for 2012 - is largely due to promised payments for various projects in member states that are now being called in.

Read and decide

Join EUobserver today

Become an expert on Europe

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

... or subscribe as a group

The finer points of the EU's multi-annual budget system - which sees member states make payment promises only to baulk at actually footing the bill further down the line - are being lost on the EU public however, as Brussels becomes increasingly associated with hypocrisy on spending.

Both European Commission president Jose Manuel Barroso and budget commissioner Janusz Lewandowski made the case for the extra money.

"[It is] not for me. It is for Europe, the regions of Europe and the workers of Europe," Barroso told press in Brussels. Lewandowski noted that 5.6 percent goes towards paying EU salaries and other administrative costs while the rest goes to "Europe."

They pointed out that they have a "legal obligation" - as do member states - to respect all the commitments made when governments approved the projects.

Not paying up will only increase national debt problems, said Barroso, noting that Slovakia's Prime Minister Robert Fico said as much to him during a visit to Brussels on Tuesday.

"[Fico] said: 'Look, we have now made this payment, if the European budget does not cover these payments as has been promised us, our deficit will increase'."

Lewandowski said the gap between "commitments of the past and payments available" is growing. He explained that the accumulated shortfall had reached around €200 billion at the end of 2011, adding that reducing the budget will exacerbate the problem. He suggested that money was going where it is "desperately" needed.

The draft budget proposes €62.5 billion for "job friendly growth" in Europe - of this €49 billion is for structural and cohesion funds, money that goes to the EU's least developed regions. Some €9 billion has been earmarked for research.

The commission suggested the EU will never manage to complete the single market if it is left to member states to take the initiative to make cross-border investments in areas such as energy. "Frankly you will be waiting forever," said Barroso.

It is likely to have a hard fight on its hands in the current political climate.

France has already said the budget draft is "impossible, unjustifiable and unacceptable." The 2013 budget has to be agreed by member states and the European Parliament.

Spain's Nadia Calviño backed to be EIB's first female chief

With less than a month to go before the start of a new leadership of the European Investment Bank, the world's largest multilateral lender, the path seems finally clear for one of the candidates, Spanish finance minister Nadia Calviño.

Analysis

Is there hope for the EU and eurozone?

While some strengths may have been overlooked recently, leading to a more pessimistic outlook on the EU and the euro area than the truly deserve, are there reasons for optimism?

EU public procurement reform 'ineffective', find auditors

The EU Commission reformed procurement directives to make bids more attractive (and competitive), but the reform has failed, say auditors. Procedures now take longer, and the number of direct awards and individual tenders has increased over the past decade.

Spain's Nadia Calviño backed to be EIB's first female chief

With less than a month to go before the start of a new leadership of the European Investment Bank, the world's largest multilateral lender, the path seems finally clear for one of the candidates, Spanish finance minister Nadia Calviño.

Analysis

Is there hope for the EU and eurozone?

While some strengths may have been overlooked recently, leading to a more pessimistic outlook on the EU and the euro area than the truly deserve, are there reasons for optimism?

Latest News

  1. How Moldova is trying to control tuberculosis
  2. Many problems to solve in Dubai — honesty about them is good
  3. Sudanese fleeing violence find no haven in Egypt or EU
  4. How should EU reform the humanitarian aid system?
  5. EU suggests visa-bans on Israeli settlers, following US example
  6. EU ministers prepare for all-night fiscal debate
  7. Spain's Nadia Calviño backed to be EIB's first female chief
  8. Is there hope for the EU and eurozone?

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?

Join EUobserver

Support quality EU news

Join us