EU BUDGET: MEPS REJECT COMMISSION OFFER ON 2007-13 FINANCES.

Mr Boge, who will be one of the lead negotiators on the Inter-institutional Agreement (IIA) along with the president and two other Vice-Chairmen of the EP's Budgets Committee, said that the Commission had "moved closer to our position only in a very few points", referring to the Commission's proposal to raise the flexibility instrument to 700 million euro a year from the current level of 200 million. The EP had called for an increase to 500 million.

A statement issued by the Alliance of Liberals and Democrats for Europe (ALDE) said that the Commission's draft IIA did not appear to have "understood the serious concerns of Parliament". The only area where the Parliament could be satisfied with the proposed increase in the flexibility instrument to euro 700 million, it said.

Dutch ALDE Member Jan Mulder insisted on the need for the Parliament to have its say over the revision clause planned for 2008-09 which will review all areas of EU spending financing of the Common Agricultural Policy and restructuring of the own resources system. "It is unthinkable that Parliament should be excluded from these two important changes which will determine the future of our common policies and their financing", he said. MEPs are worried that without firm commitments they could be deprived of any influence over the review in the same way that they were not consulted the 2002 agreement to finance the CAP.

Mr Mulder added that the new IIA should include reform of the rules on financial controls so that...