INTERVIEW WITH JANUSZ LEWANDOWSKI, BUDGET COMMISSIONER : "RISK OF PAYMENT SHORTFALL WILL BE MUCH BIGGER NEXT YEAR".

• Position: Interview

Budget Commissioner Janusz Lewandowski explains the pitfalls in the current budgeting logic whereby payments lag far behind commitments. It means that the level of payments agreed to by Council and Parliament for this year's budget was not enough and that this scenario is almost certain to repeat itself in the 2012 EU budget. It also means that commitments have lost value and risk being decommitted.a

What do you make of the deal on the 2012 EU budget struck between Council and Parliament?

I welcome the agreement, which is better than disagreement last year. Agreement is a value in itself. However, I have mixed feelings because on this occasion we were also testing the statements on payments undersigned by member states, Parliament and Commission reflecting the austerity climate: we are inclined to keep payments low, however, when we demonstrate there are additional needs, additional resources should cover the outstanding bills.

This was the case this year. We detected a shortage of 1.6 billion for the European Social Fund, which was cut last year. Commission has made a big effort to cover three quarters of this outstanding sum with savings, mainly rural development with so-called redeployment within the budget. But 550 million is still outstanding. Finally, the agreement struck was the lowest common denominator: 200 million. But that was purely political. I have no idea where to find the 350 million missing. Probably some of the bills will have to be paid in January instead of now.

So was the declaration on payments signed last year respected?

For the first time to such an extent we are not in a position to cover payment needs via internal redeployment. Normally there is a surplus. Many member states came with a clear mandate from the capitals not one euro more'. It is debatable whether this is a half-filled glass or a half-empty one. For me it is important to have at least 200 million out of the 550 million.

The Council did not entirely fulfil its part of the bargain. What is its word worth then?

It has lost half of its value under austerity.

Will the level of payments agreed to for the 2012 EU budget be enough?

I still believe that it is not enough. The risk of having a payment shortfall will be much bigger next year. The paradox is that this is not making the life of finance ministers easier when we are delayed with our compensations from Brussels.

What is your estimation concerning the probable shortage of payments next year?

It will be...