Wednesday

27th Sep 2023

EU budget agreed after MEPs settle for €3.8bn spending hike

  • MEPs have signed off on a €132.8bn budget for 2013 (Photo: European Parliament)

The 2013 EU budget has been agreed after MEPs signed off on a deal worth €132.8 billion in Strasbourg on Wednesday (12 December).

The agreement breaks months of deadlock between MEPs, the commission and national governments.

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

It increases EU spending next year by just €3.8 billion, over €5 billion less than the sums demanded by MEPs and the EU executive.

It also includes a controversial deal providing just €6.1 billion of emergency funding to the European Commission to cover outstanding bills from 2012.

In October, the commission tabled an emergency budget worth €9 billion, with the EU's student exchange Erasmus programme and the European Social Fund among items facing a cash-flow crisis.

However, with member states refusing to stump up the extra cash in full, the EU executive will now roll over 2012 payments worth roughly €2.5 billion into 2013.

Speaking in Strasbourg, Alain Lamassoure, the centre-right chair of the assembly's budget committee, complained that by rolling over payments the deal "respects the treaty but betrays its spirit."

Green budgetary spokesperson Helga Trupel said the agreement would "lead to a budget hole of at least €9 billion at the end of next year."

For his part, Italian conservative Giovanni La Via, who drafted the parliament's position on the budget, said that the funds would "guarantee investment in growth and job-creation."

Following the vote, the EU's budget commissioner warned that a repeat cash-shortfall would probably occur in 2013.

"The approved budget will in all likelihood not be sufficient to pay the incoming bills ... the pressure on the 2013 EU budget will be tremendous. There is a serious risk that we will run out of funds early in the course of next year," warned Janusz Lewandowski.

He added that "by systematically cutting the commission's estimates, the Council transforms the EU annual budget in a budget for nine to 10 months; last year we ran out of cash to pay all the claims in November, this year was in October and next year I expect this to happen even earlier."

The budget includes a 6.4 percent increase for EU research and development funding, alongside a 6.3 percent rise for the trans-European transport network.

The foreign aid budget also rises by 1.9 percent to cover extra funds to support Palestine. The EU's three main institutions will see a real terms cut.

MEPs told to prepare for budget cuts

MEPs should brace themselves for an overall cut in the next EU budget framework, commission President Barroso has warned.

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.

Column

Will Poles vote for the end of democracy?

International media must make clear that these are not fair, democratic elections. The flawed race should be the story at least as much as the race itself.

Latest News

  1. EU and US urge Azerbijan to allow aid access to Armenians
  2. EU warns of Russian 'mass manipulation' as elections loom
  3. Blocking minority of EU states risks derailing asylum overhaul
  4. Will Poles vote for the end of democracy?
  5. IEA says: Go green now, save €11 trillion later
  6. The failure of the Just Energy Transition Fund in South Africa
  7. EU and G7 tankers facilitating Russian oil exports, report finds
  8. EU trade chief in Beijing warns China of only 'two paths' forward

Stakeholders' Highlights

  1. International Medical Devices Regulators Forum (IMDRF)Join regulators, industry & healthcare experts at the 24th IMDRF session, September 25-26, Berlin. Register by 20 Sept to join in person or online.
  2. UNOPSUNOPS begins works under EU-funded project to repair schools in Ukraine
  3. Georgia Ministry of Foreign AffairsGeorgia effectively prevents sanctions evasion against Russia – confirm EU, UK, USA
  4. International Medical Devices Regulators Forum (IMDRF)Join regulators & industry experts at the 24th IMDRF session- Berlin September 25-26. Register early for discounted hotel rates
  5. Nordic Council of MinistersGlobal interest in the new Nordic Nutrition Recommendations – here are the speakers for the launch
  6. Nordic Council of Ministers20 June: Launch of the new Nordic Nutrition Recommendations

Join EUobserver

Support quality EU news

Join us