EU BUDGET: COMMISSION TO PROPOSE MASSIVE RISE IN FOREIGN AID RESERVES.

• Position: Brief Article

The reserve is part of the annual euro 100 billion general budget and is mainly used to pay for unforeseen international crises. In recent years, it has provided large parts of funding for reconstruction in Iraq and Afghanistan and aid for Asian countries hit by the tsunami of December 2005.

The move to raise the reserve to 700 million is almost certainly to be opposed by the Council which prefer to find funds for unpredicted events from unspent monies in other parts of the budget. It can therefore be seen as an opening negotiating position.

The increase does not include the euro 500 million the Commission is seeking for a Globalisation Adjustment Fund (GAF) to help workers affected by...