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Friday 24.11.2017 | Name days: Velta, Velda

EU 2013 budget discussions fail

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Discussions regarding the EU 2013 budget have failed. The European Parliament refused to sit at one table with member states that refuse to cover a number of expenses of 2012.

A deficit of nine billion EUR in this year’s budget lies at the base of the conflict. This deficit was caused by expenses of the Erasmus student exchange program, by expenses if research funds, humanitarian aid and support of rural regions.

The only amount the discussions were able to succeed on – 670 million EUR intended to be used as compensation for the people who suffered from the earthquake in Italy.

The tension rising on the eve of the upcoming EU summit also increases conflicts in opinions of rich and relatively poor countries in regard to the long-term EU budget.

“If they cannot agree on paying the bills, what can they agree on?” – member of the Socialist Group Hannes Swoboda said.

Now the European Commission will need to compile a new budget project for 2013 and try to have it approved before the end of 2012.

Chairman of the European Parliament Martin Schulz said they cannot reach an agreement on budget issues. However, he added that this is not immediately a catastrophe – they merely postponed the question. He said the parliament will wait for proposals from the European Commission.

Eight leading EU countries have already announced that they will not finance the currently formed deficit and reminded Brussels that it demands budget discipline from members of the EU. Therefore, it should follow the same principles.

According to the Chairman of the EP’s Budget Commission Alain Lamassoure, the EP is ready to discuss the 2013 project, but only after the situation regarding 2012 is clarified. He says some countries do not agree.

The three-week term given by the laws governing the EU to regulate budget conflicts between the EU and EC expired on midnight of Tuesday to Wednesday. Now the EC is required to review its proposals in regard to the main financial document of the union, Euronews reports.

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