Thursday, February 14, 2013

European budget: If you missed an episode

European budget: If you missed an episode

Despite the agreement on February 8 by the Heads of State and Government of the European Union, the EU budget for the period 2014 to 2020 - said "multiannual financial framework" - is still in the limbo. The four main European parliamentary groups, left and right, jointly announced that they would refuse to vote in the state. They believe that the budget on which European leaders agreed austerity entérinait within the Union.

Back several months of negotiations.

British pressure

Brussels, which no tax taken directly depends on the Member States to finance. Each pay 0.73% of its gross national income, are plus tariffs external borders of the EU, a levy of 0.3% on VAT and agricultural duties.

Of the twenty-seven, two opposing camps. In the net contributors, the United Kingdom, Sweden, the Netherlands, Finland, Austria and especially Germany, calling for a drastic reduction in future budget. Poorer countries, which have, such as Poland, Romania and Hungary, the Cohesion Fund, fear that these savings are made at their expense, to better spare the common agricultural policy advocated by France.

22 and 23 November: failed extraordinary EU summit

"There is a real problem in the sense that there has been no progress in reducing costs. (...) We have to cut the spending we can not afford." David Cameron

Given the budgetary constraints of the member countries, the European Council President Herman Van Rompuy proposes to cut 75 billion euros envelope 1033 billion initially proposed by the European Commission, bringing to 958 billion. David Cameron cuts require much more substantial - about 147 billion - to bring the total to 886 billion euros. Stumble discussions.

"We will continue consultations in the coming weeks to find a consensus. Bilateral discussions and constructive discussions have highlighted a sufficient degree of convergence potential." Herman van Rompuy


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