Thursday

19th Oct 2017

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.

Court hearing in MEPs 'private' expenses battle

The European parliament claims the media and public do not have a right to supervise or monitor the public role of MEPs, says Natasa Pirc Musar, a lawyer representing journalists, in a transparency battle against the assembly.

Eurogroup closes Schaeuble era

Eurozone finance ministers bade farewell to their longest-serving and most influential colleague, while preparing to also replace its chairman at the end of the year.

EU agencies defend research ahead of glyphosate vote

As the renewal of the weedkiller glyphosate is a hot potato on the EU agenda, with a vote in the Parliament on Thursday, the role of two closely-involved EU agencies has come under scrutiny.

Europeans more positive about EU, survey shows

On balance, 55 percent of British respondents said the UK had benefited from EU membership. Among all European respondents, 47 percent said their voice counted in the EU.

News in Brief

  1. EU summit moved to previous building after fumes scare
  2. Catalonia will 'not back down'
  3. New toxic incident in EU building ahead of summit
  4. Murdered Malta journalist's family invited to Parliament
  5. EU food safety chief denies keeping studies 'secret'
  6. EU states pledge 24,000 resettlement places so far
  7. US ready for arms sale to update Greece's F-16 fleet
  8. Austria's Green leaders step down following election failure

Stakeholders' Highlights

  1. EU2017EENorth Korea Leaves Europe No Choice, Says Estonian Foreign Minister Sven Mikser
  2. Mission of China to the EUZhang Ming Appointed New Ambassador of the Mission of China to the EU
  3. International Partnership for Human RightsEU Should Seek Concrete Commitments From Azerbaijan at Human Rights Dialogue
  4. European Jewish CongressEJC Calls for New Austrian Government to Exclude Extremist Freedom Party
  5. CES - Silicones EuropeIn Healthcare, Silicones Are the Frontrunner. And That's a Good Thing!
  6. EU2017EEEuropean Space Week 2017 in Tallinn from November 3-9. Register Now!
  7. European Entrepreneurs CEA-PMEMobiliseSME Exchange Programme Open Doors for 400 Companies Across Europe
  8. CECEE-Privacy Regulation – Hands off M2M Communication!
  9. ILGA-EuropeHealth4LGBTI: Reducing Health Inequalities Experienced by LGBTI People
  10. EU2017EEEHealth: A Tool for More Equal Health
  11. Mission of China to the EUChina-EU Tourism a Key Driver for Job Creation and Enhanced Competitiveness
  12. CECENon-Harmonised Homologation of Mobile Machinery Costs € 90 Million per Year

Latest News

  1. EU okays Privacy Shield's first year
  2. EU seeks to decrypt messages in new anti-terror plan
  3. EU agencies defend research ahead of glyphosate vote
  4. Spain points at elections as exit to Catalan crisis
  5. How EU can ensure Daphne Caruana Galizia's legacy survives
  6. Juncker dinner to warm up relations with eastern EU
  7. Court hearing in MEPs 'private' expenses battle
  8. The unbearable lightness of leadership