EU BUDGET: MEPS THREATEN TO REJECT 2007-13 FINANCING DEAL.

The motion, which is expected to be voted on in the Parliament's plenary session starting January 16, also criticises the deal struck by EU leaders for failing to provide a "detailed flexibility mechanism" (which would make extra funds available to deal with unforeseen events like natural disasters and foreign policy emergencies) nor does it give guarantees about the EP's role in reviewing budgetary needs. The Parliament's position, approved by an overwhelming number of MEPs last June, "ensures a better match of political priorities and financial needs, a modernising of the budget through more flexibility and an improvement on the quality of implementation", according to the resolution.

MEPs want to see real negotiating mandate.

Despite the threat of rejecting the deal, the motion says the Parliament is "willing to enter into constructive negotiations with the Council" provided the Austrian Presidency has a real negotiating mandate. Mr Boge's resolution says that in those negotiations the Parliament would defend the "qualitative, structural and qualitative elements" of its position and "enhance the European dimension of internal and external policies".

MEPs want bigger budget and flexibility reserve.

Back in June 2005, the Parliament called for a budget worth euro 975 billion over the seven-year period compared with 862 billion agreed by EU leaders in December. The EP also called for the size of the existing flexibility reserve to be increased from euro 200 million to 500 million. MEPs have already made it clear that they want to reverse some of the cuts to spending made as part of the December deal on areas such as health and consumer protection, aid to small- and medium-sized businesses and youth and training programmes.

EP believes annual budgets could be higher.

The draft resolution warns that if there is no agreement between the Parliament, the Council and the Commission, the budget will be set on an annual basis. Several MEPs believe that if this were to...