BUDGET: BOGE REPORT EXPECTED TO BE APPROVED WITH MINOR CHANGES.

The EP's "temporary committee on policy challenges and budgetary needs of an enlarged Union 2007-13" will hold a debate and vote on May 10 in Strasbourg on the report by Reimer Boge (EDD-ED, Ger) on the 2007-13 Financial Perspective (FP). Despite the fact that the 100 MEPs on the committee have tabled over 600 amendments, Boge believes that the final version of the report will preserve the main points of his draft which he tabled on March 30 (see Europe Information 2950, Section I). The MEP, who has whittled these requests down to around 40 compromise amendments to be voted on next week, said that the committee would retain the focuses of his draft report, namely the Lisbon strategy, research and development and the Trans-European Networks. It also includes a cut in funding for the "competitiveness, growth and employment" heading, a 10% across-the-board cut for administrative costs, and funding farm payments for Romania and Bulgaria from the 2002 deal on financing of the Common Agricultural Policy.

Boge told Europe Information that the committee would support his call for 0.41% of EU Gross National Income to be spent on cohesion policy while maintaining the 4% of GDP limit for the maximum amount of funds a country can receive from the EU. At the same time, there would be support for keeping the "n+2" rule, under which member states have to spend money allocated to certain projects within three years, or lose the funds. These last two points have come under strong attack from MEPs from the new member states, particularly from Poland. However, Boge indicated there would be more scope for flexibility in terms of how the "n+2" rule was applied.

He also said that the revised report would reflect the political groups' requests for greater emphasis on life-long learning, culture and youth policy. The MEP said that the other institutions had shown some understanding of the EP's concerns on the Parliament's powers over aspects of external relations policy and that they were prepared to move some way to accommodate the EP's views.

Boge said that the revised report would also take on board requests for ring-fencing of euro 21 billion for the EU's Natura 2000 programme for a network of nature conservation zones.

The MEP said he was sticking to his recommendation that the length of the financial perspective should be changed to be more closely in line with the terms of office of the Parliament. As a compromise he is now calling for the next perspective...