EU at odds over its 2011 budget

Members of the European Parliament have locked horns with EU governments over next year’s EU budget, which is drafted by the European Commission.
 
At stake is the financing of future projects and policies across the EU.
 
Under the more wide-ranging powers conferred on them by Lisbon Treaty, MEP’s have pushed for an equal say in the finances of EU governments.
 
This has not gone down well with member states, and conciliation talks have so far failed to break the deadlock, potentially freezing 2011’s budget at this year’s level.
 
Parliamentary delegates have agreed to the 2.9% budget increase but are demanding clarification on the extent of their powers in outlining future EU budgets.
 
And they are calling for an observer role in any future discussions on spending and income sources for the EU.
 
A cohort of five countries led by Britain has dismissed the Parliament’s requests for long-term concessions and claim that now is not the time for negotiation.
 
Fabian Zuleeg from the European Policy Centre explained: “The Parliament is now using this discussion on the annual budget to get more influence on the next multi-annual financial framework for the EU which will start from 2014 onwards, so it is trying to use the new powers in its hands under the Lisbon Treaty as a lever to get more for the future.”
 
The Budget Commissioner warned of billions of euros being withheld if the Council and Parliament could not secure a deal, affecting funds for financial supervision, immigration, asylum and even the EU’s new diplomatic service.

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