MEPs would accept lean budget to prevent paralysis

To keep funding European projects, determined to avert a budget crisis on top of a euro crisis, the European Parliament has offered a compromise for EU governments. The MEPs have adopted a resolution saying they are willing to make a deal over next year’s spending, on certain conditions.

They voted to accept EU governments’ wish for a 2.9% budget increase, even though it is half of what the parliament had hoped for.

French conservative member Alain Lamassoure said: “There’s one point we can’t accept; a reduced budget yes, but not a paralysed budget!”

If the EU member states do not accept parliament’s terms, and insist on strict austerity, next year’s funding will be the same as this year’s, undermining EU projects.

The assembly will settle for less providing it is allowed flexibility over where money goes, and that attention is given to a future EU tax, so projects do not have to rely on national contributions.

The UK led the charge to keep the bloc’s budget down, though around a dozen governments, including France and Germany, backed Prime Minister David Cameron’s call to respect economic conditions.

The European Parliament has co-decisional power over the budget but must meet the member states half way.

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