Saturday

21st Apr 2018

Member states continue budget bickering

  • EU ministers failed to reach a consensus on the Cypriot EU presidency's revised EU budget proposals. (Photo: Images_of_Money)

EU ministers on Monday (24 September) did not reach an agreement on the Cypriot EU presidency’s revised budget headings in the next seven-year, EU €1,033 billion budget pact.

The EU presidency had updated a so-called “negotiating box” which outlines the main elements and options for the multi-annual financial framework (MFF) negotiations.

Thank you for reading EUobserver!

Subscribe now for a 30 day free trial.

  1. €150 per year
  2. or €15 per month
  3. Cancel anytime

EUobserver is an independent, not-for-profit news organization that publishes daily news reports, analysis, and investigations from Brussels and the EU member states. We are an indispensable news source for anyone who wants to know what is going on in the EU.

We are mainly funded by advertising and subscription revenues. As advertising revenues are falling fast, we depend on subscription revenues to support our journalism.

For group, corporate or student subscriptions, please contact us. See also our full Terms of Use.

If you already have an account click here to login.

“Not all elements of our negotiating box were accepted by most or all member states, but all member states accepted the ‘negotiating box’ as a basis for further work", said Andreas Mavroyiannis, Deputy Minister for European Affairs of Cyprus, who chaired the meeting.

Mavroyiannis says spending cuts will be necessary in all MFF headings, which cover anything from job creation to farming subsidies. The EU presidency has yet to put any figures on the cuts on each but argues overall expenditure ceiling for 2014-2020 will have to be “have to be adjusted downwards”.

The UK wants €100 billion slashed from the budget. Britain's Europe Minister David Liddington told the BBC that the commission "should get into the habit of spending better, not always looking to spend more".

But other member states opposed the presidency’s revised plans to slash the budget, “arguing that the MFF was the major investment tool for promoting growth and creating jobs.”

Some also opposed any proposed cuts in the EU’s common agricultural policy (CAP) which eats up €55 billion of the EU’s budget every year. The delegations had argued against any reduction to the EU average of direct aid per hectare.

CAP is set to cost the EU €380 billion over 2014 to 2020 with each EU citizen paying around €105 a year for the scheme, of which €80 goes directly to farmers.

The commission also presented its plans to introduce its own VAT-based revenue stream. The EU budget is currently financed through customs duties, a uniform rate of 0.30% levied on the harmonised VAT base of each member state, and percentage levied on the GNI of each.

But the commission proposal would entitle it to tax businesses and individuals as well. They also discussed a proposal to draw revenue based on a financial transaction tax. Some member states rejected both ideas.

EU ministers will continue negotiations on 16 October and 20 November, with EU leaders to debate the issue on 22-23 November at a special summit. Cyprus is hoping for an overall deal by the end of the year.

Barroso fights to keep investment pot in EU budget

The European Commision has started banging the drum for a new €50bn pot of money that it says will reinvigorate Europe's economy. But the aid is unlikely to make it through budget negotiations unscathed.

Investigation

MEP friendship groups offer 'backdoor' for pariah regimes

MEPs are using so-called 'friendship groups' to cater to foreign governments without oversight and little public scrutiny. Initially set up to promote cultural exchanges, some have become lobbying platforms to push state views from governments with poor human rights records.

Getting secret EU trilogue documents: a case study

On Thursday, the European Parliament will vote on a political deal on organic farming, following 19 months of behind-closed-doors negotiations. EUobserver here details a five-month odyssey to get access to the secret documents that led to the deal.

News in Brief

  1. Audit office: Brexit 'divorce' bill could be billions higher
  2. MEPs urge better protection for journalists
  3. Dieselgate: MEPs back greater role for EU in car approvals
  4. European parliament adopts new organic farming rules
  5. EU granted protection to half million people in 2017
  6. Report: Facebook to carve 1.5bn users out of EU privacy law
  7. Greek court ruling permits migrants to travel to mainland
  8. Commonwealth summit hopes for trade boost after Brexit

Stakeholders' Highlights

  1. Nordic Council of MinistersWorld's Energy Ministers to Meet in Oresund in May to Discuss Green Energy
  2. ILGA EuropeParabéns! Portugal Votes to Respect the Rights of Trans and Intersex People
  3. Mission of China to the EUJobs, Energy, Steel: Government Work Report Sets China's Targets
  4. Martens CentreJoin Us at NET@WORK2018 Featuring Debates on Migration, Foreign Policy, Populism & Disinformation
  5. European Jewish CongressKantor Center Annual Report on Antisemitism Worldwide - The Year the Mask Came Off
  6. UNICEFCalls for the Protection of Children in the Gaza Strip
  7. Mission of China to the EUForeign Minister Wang Yi Highlights Importance of China-EU Relations
  8. Nordic Council of MinistersImmigration and Integration in the Nordic Region - Getting the Facts Straight
  9. Macedonian Human Rights MovementMacedonians in Bulgaria Demand to End the Anti-Macedonian Name Negotiations
  10. Counter BalanceThe EIB Needs to Lead by Example on Tax Justice
  11. ILGA EuropeTrans People in Sweden to be Paid Compensation for Forced Sterilisation
  12. International Partnership for Human RightsThe Danger of Standing Up for Justice and Rights in Central Asia

Latest News

  1. ECJ ruling set to end 10-year 'mouth tobacco' lobbying saga
  2. Whistleblowers, Syria and digital revolution This WEEK
  3. MEP friendship groups offer 'backdoor' for pariah regimes
  4. Macron and Merkel pledge euro reform
  5. Obscurity surrounds EU military fund's expert groups
  6. New EU party finance rules short circuit accountability
  7. Draghi to stay in secretive 'lobby' group
  8. Bulgaria offers lesson in tackling radical-right populists