Thursday

27th Apr 2017

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.

Dear EUobserver reader

Subscribe now for unrestricted access to EUobserver.

Sign up for 30 days' free trial, no obligation. Full subscription only 15 € / month or 150 € / year.

  1. Unlimited access on desktop and mobile
  2. All premium articles, analysis, commentary and investigations
  3. EUobserver archives

EUobserver is the only independent news media covering EU affairs in Brussels and all 28 member states.

♡ We value your support.

If you already have an account click here to login.

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.

News in Brief

  1. EU parliament moves to lift Le Pen's immunity
  2. EU Commission launches probe into Hungary's university law
  3. Scots slowly losing appetite for independence - poll
  4. Council of Europe puts Turkey on watch list
  5. EU to put parental leave on political agenda
  6. Israel cancels German meeting over human rights groups
  7. Hungary's Orban will participate in EU parliament debate
  8. Malta floats cash-for-refugees plan

Stakeholders' Highlights

  1. UNICEFRace Against Time to Save Millions of Lives in Yemen
  2. Nordic Council of MinistersDeveloping Independent Russian-Language Media in the Baltic Countries
  3. Swedish EnterprisesReform of the European Electricity Market: Lessons from the Nordics, Brussels 2 May
  4. Malta EU 2017Green Light Given for New EU Regulation to Bolster External Border Checks
  5. Counter BalanceCall for EU Commission to Withdraw Support of Trans-Adriatic Pipeline
  6. ACCAEconomic Confidence at Highest Since 2015
  7. European Federation of Allergy and Airways60%-90% of Your Life Is Spent Indoors. How Does Poor Indoor Air Quality Affect You?
  8. European Gaming and Betting AssociationCJEU Confirms Obligation for a Transparent Licensing Process
  9. Nordic Council of MinistersNordic Region and the US: A Time of Warlike Rhetoric and Militarisation?
  10. European Free AllianceEFA MEPs Vote in Favor of European Parliament's Brexit Mandate
  11. Mission of China to the EUXinhua Insight: China to Open up Like Never Before
  12. World VisionViolence Becomes New Normal for Syrian Children

Latest News

  1. EU starts legal action against Hungary
  2. Brexit is about Europe's future as well
  3. Power struggle in Greenland: Three reasons why the EU should care
  4. Nordic and Baltic countries step up digitalisation efforts
  5. European states still top media freedom list
  6. Let’s not put European public health at risk
  7. Threatened Budapest university calls for EU support
  8. Orban set to face down EU threats