Europe Finally Faces 2007 with a Budget

The Financial Perspectives for 2007-2013 have been settled between the Commission, the European Parliament and the EU Council. As with most negotiations, all parties were reluctant to praise the final draft.

Josep Borrell, President of the European parliament, announced in the plenary that a final deal was reached between all the institutions. It represents the addition of “€4 billion of fresh money”, when compared to the agreement that was brokered under the British presidency and that was rejected by the parliamentarians. This extra amount will be allocated to the Erasmus trans-European education program, long-life education, research and innovation and support for SMEs.

But all groups spoke of a half victory. It was perhaps President Borrell that put it better when he talked of a “satisfied dissatisfaction”. The EPP-ED rapporteur on the financial perspectives, MEP Reimer Boege, welcomed the settlement. "The result obtained by our negotiating delegation means European added-value in both quantitative and qualitative terms", Boege said today in the plenary of the European Parliament.

As for the PSE – IDEA, Group President Martin Schulz and the Group's Budgets negotiator, Ralf Walter, issued a joint statement praising the document and calling it “a victory both for the European Parliament and common sense." They also stressed the new responsibilities lie within the member states with this new framework. "A central part of this agreement relates to the role of the member states which now have specific responsibility for expenditure of the funds. They must report on the use of resources”, they reportedly said.

The Council was represented at its highest level by sitting President, Austrian Chancellor Wolfgang Schussel. He was the most positive and relieved of all the participants in the discussions. After the Luxembourg Summit had failed to reach a deal and the one that was finally brokered under the British presidency was rejected by Parliament, the Council was under pressure to provide with a budget before it actually came into force.

Only three months after the ordeal, the Austrian leader acclaimed the final cut as a “clear improvement from the European Council’s proposal”. He stressed the importance of having a “new financial framework for the 10 new member states”.