BUDGET: SIX NET CONTRIBUTORS RESTATE CASE FOR LOWER SPENDING.

The "non-paper" by the group of six - or "G6" (Austria, France, Germany, the Netherlands, Sweden and the United Kingdom) restates their well-known line that a budget of 1% in terms of commitments would produce a budget "consistent with the principles of subsidiarity, proportionality, affordability and EU value added". It adds that a budget of euro 815 billion over the seven-year period implies an increase in real terms compared to the current financial perspective.

While it says that cohesion policy can complement action by member states in support of the Lisbon Agenda, the paper stresses that cohesion policy and the Lisbon Strategy "do not share the same objectives". This point is being made against some member states who are using arguments about the importance of the Lisbon Strategy to justify higher spending on cohesion policy. It emphasises that the Lisbon Strategy is "primarily about structural reforms in the EU member states and defines national goals which are co-ordinated at EU level". Programmes at EU level can only complement actions by member states, it says, while conceding that there might be a case for an increase for programmes with a clear EU value added.

In a reference to the allocations of funds for research, the paper stresses the importance of the "principle of excellence". This is a response to demands from some, mainly southern European member states, for R&D spending to be distributed evenly rather than being concentrated on the main research centres, which are mostly in northern countries.

On Heading 1a (competitiveness for growth and employment), the G6 says there should be a slight increase compared to the current perspective in cases with a clear EU added value but less than the Commission proposal.

On Heading 1b (cohesion for growth and employment) it says there should be a stronger focus on areas most in need. They insist that there should be no phasing out of the cohesion fund, despite the proposal in recent draft compromises by the Luxembourg Presidency for a...