EU BUDGET: MEPS READY TO LAUNCH TALKS ON 2007-13 FINANCING DEAL.

Funds should move closer to citizens, too.

At the Parliaments plenary session in Strasbourg on January 18, a hefty 541 MEPs voted to back a motion rejecting the December package, with 56 against and 76 abstentions. But MEPs and political group leaders said they would push for extra money for programmes close to citizens and more flexibility to deal with crises. Austrian Chancellor and current EU Council President Wolfgang Schussel indicated that it would be possible to increase funding for programmes for culture, education and youth.

The main criticism of MEPs in backing a resolution drafted by Reimer Boge (EPP-ED, Germany) was that the deal struck in December did not provide sufficient funds for the EU to carry out its policy priorities. EU leaders agreed a total budget of euro 862 billion compared to the 975 billion demanded by the Parliament in its opinion of June 2005.

Janusz Lewandowski, President of the EPs Budgets Committee, said that Council's position odoes not give the EU sufficient means to face new challenges. If member states are serious about competitiveness as defined in the Lisbon Agenda, proper means are necessaryo.

MEPs are calling for funds to be increased for programmes which directly benefit citizens such as in the fields of culture, education and youth projects. They are also insisting that the Parliament should be closely involved in the review of the EUs spending priorities and sources of revenue scheduled for 2008/09. MEPs want to avoid a repeat of episodes such as the deal on financing agricultural policy struck in 2002 without the EP being consulted. The EP is also insisting that any deal with the Council should include guarantees on improving control of spending of EU funds by the member states in particular by getting assurances from Finance Ministers that spending is being properly controlled.

Priorities wrong?

Martin Schulz, leader of the Party of European Socialists, highlighted the fact that the December deal cut over euro 55 billion off spending on policies on growth and employment, security and citizenship compared to the EPs requests in June.

Graham Watson, leader of the Alliance of Liberals and Democrats for Europe (ALDE) group, questioned why the Council wanted to cut the Erasmus programme for student exchanges...