EU BUDGET: MEPS SET OUT PRIORITIES FOR NEGOTIATIONS ON 2007-13 FINANCES.

Speaking at a press conference in Brussels on January 24, Janusz Lewandowski (EPP-ED, Poland), Chairman of the EP's Budgets Committee, said that the deal struck by EU leaders in December would mean "devastating cuts" for programmes aimed at boosting competitiveness like the trans-European networks (TENs), health and consumer protection policies and for external relations actions.

The MEP said that the December deal had done "real damage" to the EU's policy ambitions, pointing out that the agreement had cut funds for lifelong learning from euro 11 billion in the original Commission proposal to 5.6 billion, while for TENs the funding had been reduced from 18 billion (proposed by the Commission) to 8.47 billion.

"Difficult to increase money.

However, Mr Lewandowski said that the Austrian Presidency had made it very clear at an initial meeting to prepare negotiations on January 23 that it would be "very difficult to increase" the amount of money for the 2007-13 finances given how difficult it was to reach the agreement in December.

In December, EU leaders agreed a total budget for the period of euro 862 billion compared to 975 billion which the EP had called for in its June 2005 position.

Lower funding for external relations.

Reimer Boge (EPP-ED, Germany), who drafted the EP's opinion on the 2007-13 finances last June, pointed out that while the December summit conclusions called for a "substantial increase" in funds for foreign policy programmes, the deal cut the budget for the partnership programme for the EU's neighbours by 30% compared to the original Commission proposal.

EP to insist on greater budget flexibility.

The German MEP also stressed the importance of more flexibility over reallocating funds within the budget to match policy priorities. He pointed out that in June 2005 the EP had proposed a more general approach to flexibility as well as an increase in the flexibility reserve from the current level of euro 200 million a year to 500 million.

The EP would also insist on a clear role...

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