Thursday

1st Jun 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.

Latest News

  1. EU data protection chief launches Frontex investigation
  2. Madrid steps up bid to host EU anti-money laundering hub
  3. How EU leaders should deal with Chinese government repression
  4. MEPs pile on pressure for EU to delay Hungary's presidency
  5. IEA: World 'comfortably' on track for renewables target
  6. Europe's TV union wooing Lavrov for splashy interview
  7. ECB: eurozone home prices could see 'disorderly' fall
  8. Adapting to Southern Europe's 'new normal' — from droughts to floods

Stakeholders' Highlights

  1. International Sustainable Finance CentreJoin CEE Sustainable Finance Summit, 15 – 19 May 2023, high-level event for finance & business
  2. ICLEISeven actionable measures to make food procurement in Europe more sustainable
  3. World BankWorld Bank Report Highlights Role of Human Development for a Successful Green Transition in Europe
  4. Nordic Council of MinistersNordic summit to step up the fight against food loss and waste
  5. Nordic Council of MinistersThink-tank: Strengthen co-operation around tech giants’ influence in the Nordics
  6. EFBWWEFBWW calls for the EC to stop exploitation in subcontracting chains

Join EUobserver

Support quality EU news

Join us