EU BUDGET: EP PRESIDENT SAYS BIGGER EUROPE NEEDS MORE FUNDS.

Mr Borrell highlighted the EUs Cohesion Policy as something which must be defended, and maintained: oCohesion policy is the identity of Europe and solidarity is one of the key features of European policy".

His comments were aimed at the group of six member states who want spending limited to 1% of the EU's gross national income (GNI) compared to the Commissions proposal of 1.14% of GNI. He warned that if member states limited the budget to 1% it would force the Union to oscale down its political objectives and unravel undertakings the Union had entered intoo. Comparing the position of the six and the Commissions proposal, Mr Borrell said that the lower figure would mean Euro 815 billion over the 2007-13 period (in terms of commitments) rather than the Euro 1,025 billion proposed by the Commission, a reduction of Euro 205 billion.

oI cannot see how the Council can reduce the financial allocation and at the same time face up to the new challenges and priorities awaiting the Uniono, he said, referring to completion of the current and forthcoming enlargements, safeguarding cohesion policy, boosting the Unions role in the world and funding new policies of research and education.

He warned that Parliaments approval was needed for a new financial perspective. Otherwise the old system would have to return with each EU policy being negotiated on an annual basis and bilateral negotiations...