EU BUDGET: AUSTRIAN CHANCELLOR SAYS DEAL WITH EP POSSIBLE IN APRIL.

• Position: Analysis on budgetting - Brief Article

Together with Mr Juncker, the Austrian Chancellor also called for "new ways to finance the EU" and new sources of revenue. "It is important to introduce new ideas because the current method will not work in future", he said. Mr Schussel was referring to plans to change the current system of own resources which finances the EU's central budget from a share of member states' VAT and customs duty revenue as well as a national contribution based on per capita prosperity levels. The Austrian Chancellor has called for a form of EU tax but the real debate on the issue will not start before 2008 when the European Commission is expected to draw up ideas for changes to the own resources system plus an overhaul of spending priorities.

EU Member States' Permanent Representatives are expected to give the Austrian Presidency a mandate to negotiate with the Parliament on February 16 ahead of the next three-way meeting (between Council, Parliament and Commission) on February 21. The Commission is expected to present a detailed breakdown on spending within each budget line in the coming weeks. There is another negotiating session...