Local view for "http://purl.org/linkedpolitics/eu/plenary/2008-09-02-Speech-2-195"
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Mr President, ladies and gentlemen, it is both an honour and a pleasure for me to speak in your House today for two reasons: firstly, because your Parliament represents the heart of European democracy. The French Presidency has a tremendous amount of respect and admiration for the work that you have done in support of European integration, and the best possible proof of our willingness to help Europe move forward together was provided by the French President in his speech in Strasbourg in July. It is this same spirit that guides me and is shared by my colleagues in the French Government. Secondly, because the draft budget for 2009, which I am presenting to you today, was adopted unanimously by the Council on 17 July. This unanimity shows that this draft budget is balanced and that it allows all EU governments to identify with it.
We are proposing a budget of EUR 134 billion in commitment appropriations, which amounts to EUR 469 million less than in the preliminary draft budget. The increase in commitment appropriations therefore amounts to 2.8% compared to 2008 and, as a result, the EU’s overall commitment capabilities are maintained.
As for payment appropriations, the Council has made an adjustment limited to EUR 1.7 billion compared to the preliminary draft budget. As you requested in previous years, the Council has not been making random across-the-board cuts to all headings. This reduction is based instead on a detailed analysis of budget implementation in 2007 and 2008 and on a realistic approach to the potential of Community programmes to be implemented and completed. The draft budget therefore amounts to EUR 115 billion in payment appropriations.
The reduction in the level of payment appropriations in 2009 does not – and I should like to emphasise this point – come as a surprise. It had been taken as read when the financial framework for 2007-2013 was adopted. If the ceiling on payment appropriations in 2009 is far lower than that in 2008 and 2010, this can be explained, in particular, by movements in appropriations for the cohesion policy, which will be affected in 2009 by the end of the 2000-2006 programming period and by a gradual increase during the 2007-2013 programming period. We also have seen no indication that new programmes have been able to get off the ground more quickly. On the contrary, the mechanism for the monitoring of the adoption of management and control systems and of major projects shows that they are getting off to a slow start. Therefore, out of 433 programmes, there are only two, in Hungary, for which interim payments have been made.
The level of payment appropriations in our draft budget is therefore realistic and adapted to the needs of the Union.
A few points should be emphasised heading by heading.
With regard to the heading ‘Competitiveness for growth and employment’, the Council attaches great importance to the implementation of the Lisbon Strategy. It has therefore ensured that adequate financing is provided, particularly for research and technological development programmes, trans-European networks and improving the quality of education and lifelong learning. The Council has limited the increase in commitment appropriations on the basis of the analysis of the potential of programmes to be implemented, as I have already said.
Nevertheless, I should like to emphasise that, in this context, the increase in commitment appropriations is quite considerable for priority programmes. For instance, compared to 2008, the Research Framework Programme will receive a 10% increase, the innovation and competitiveness programme a 16% increase and the ‘Lifelong Learning Programme’, essential for European citizens, will receive a 6% increase.
These examples clearly illustrate the targeted strategy adopted by the Council. Moreover, the Council has reduced payment appropriations (by EUR 471 million) by making cuts on several targeted lines so as to take into account how the appropriations were utilised.
With regard to heading 1b, ‘Cohesion for growth and employment’, the Council has accepted the amount of commitment appropriations proposed by the Commission in the preliminary draft budget. For payment appropriations, we adopted a balanced approach by introducing, on the one hand, an increase of EUR 50 million for convergence countries and regions and, on the other, a reduction of EUR 300 million in the area of regional competitiveness.
This means a reasonable overall reduction of EUR 250 million in payment appropriations, and I am delighted that we were able to agree on a joint statement on the Structural and Cohesion Funds as well as on the rural development programmes.
Our initial contacts have provided a sound basis for the continuation of the budgetary procedure. The trialogue and conciliation meetings have taken place in a constructive atmosphere. We have already reached agreement on six statements, and I am sure that we shall be able to agree on many other matters of common interest.
With regard to the heading ‘Conservation and management of natural resources’, the Council has adopted a limited reduction of EUR 382 million in commitment appropriations and of EUR 497 million in payment appropriations. These concern mainly budget lines related to market intervention and clearance of accounts and, to a reasonable degree, rural development.
I would also point out that the budget lines related to food programmes, free distribution of fruit and vegetables, school milk and promotion measures have been maintained. We have also maintained the amounts proposed by the Commission for environmental policies.
With regard to heading 3, ‘Citizenship, freedom, security and justice’, the Council has made a slight increase in the margins available under the ceilings to reach a total of EUR 76 million by making targeted reductions of EUR 20 million in commitment appropriations. In this context, I should like to emphasise the importance attached by the French Presidency to immigration policy. The amount proposed in the preliminary draft budget for the Frontex Agency has therefore been included.
With regard to heading 4, ‘The EU as a global partner’, we have sought to anticipate the needs related to Palestine and Kosovo without waiting for the Commission’s letter of amendment, which it should be adopting next week. We have therefore set aside additional resources, compared to the preliminary draft budget, of EUR 100 million for Palestine and EUR 60 million for Kosovo.
Regarding the CFSP, the Council has accepted, as a precautionary measure, the commitment and payment appropriations which were entered in the preliminary draft budget and which are in line with the amounts provided for in the Interinstitutional Agreement of 17 May 2006. As for payment appropriations, the reduction made amounts to EUR 393 million, but half of this reduction relates to the reserve for emergency aid and, as you know, the Council considers that it may be possible to finance this reserve by redeploying payment appropriations, as has been seen in recent years.
Finally, with regard to heading 5, ‘Administration’, the Council has adopted a controlled increase of 3.8% in administrative appropriations which it deems necessary to ensure the proper functioning of the institutions. The margin available under heading 5 therefore amounts to EUR 224 million. The Council has, of course, accepted the 250 posts linked to the 2007 enlargement. We have also made targeted reductions based on past implementation, rather than making across-the-board cuts, which have become almost a tradition.
Finally, with regard to decentralised agencies, we have taken account of the life cycle of these agencies. We cannot deal with agencies that have already reached cruising speed in the same way as agencies that are still developing their expertise – agencies that are at the development stage – and we have taken into account the surplus generated by some agencies in previous financial years. This is the case for Frontex and Eurojust, two agencies that fall within our priorities.
In conclusion, I therefore feel that the 2009 draft budget represents a balance between the ambitions that we naturally all have for our European Union and sound budgeting for which we are answerable to the citizens. This is clearly essential if citizens are to share this confidence in the European idea.
The view of this House will probably be different, but we are only at the beginning of the budgetary procedure and we still have plenty of time to harmonise our views on the structure of the 2009 budget and to respond to the challenges facing us as a result of the Commission’s new proposals. I am sure that the three institutions will therefore make every effort so that, between now and conciliation in November – in two months’ time – we can reach a comprehensive agreement on all these issues, and I hope that this agreement will be the best possible compromise for both the institutions and European citizens. You can obviously count on my total commitment with that in view.
I can assure you that the Council is prepared to continue this high-quality dialogue with a view to securing an agreement on the 2009 budget that is satisfactory to all.
This agreement should comply with three principles: the first is to ensure the financing of the European Union’s policy priorities – and we have established a financial framework for the period from 2007 to 2013 that we must implement in order to achieve our objectives in terms of competitiveness, cohesion and growth. The second is to observe the rules of budgetary discipline and sound financial management laid down in the Interinstitutional Agreement. Expenditure must remain within the limits fixed by this Agreement and sufficient margins must be maintained under the ceilings for the various headings. The third principle requires that appropriations be adjusted to take into account actual requirements. In particular, we should draw lessons from previous budget outturns so as to be able to determine our real ability to implement sectoral policies. Moreover, since the establishment of the financial perspective in 1988, the Community budget has always been subject to an under-utilisation of payment appropriations. Budget implementation is improving thanks to the efforts made by Commissioner Dalia Grybauskaité, but uncertainties related to the financial year 2009 clearly remain considerable and there is no evidence, at this point, to suggest that 2009 will be any different from previous years.
It is also important to protect the interests of European taxpayers – this is all the more true in the current economic climate – and so we must avoid, as far as possible, entering in the budget any appropriations that cannot be utilised. The objective of a realistic and balanced budget has consequently been the guiding principle of the Council’s work.
Before presenting the fruits of its labours to you, I should like to say a word on the facility for rapid response to soaring food prices in developing countries. Our discussions over the next few weeks will focus on this issue. The European Council of 19 and 20 June provided a strong political impetus by welcoming the Commission’s intention to come forward with a proposal for a new fund to support agriculture in developing countries. However, the European Council mandate is quite explicit in this respect: it is in strict compliance with the current financial perspective that a solution has to be found.
I am aware that the European Parliament does not currently share this view. Nevertheless, the Council will evaluate the proposal adopted by the Commission on 18 July from this perspective.
Finally, I would remind you that the European Council reaffirmed only yesterday its readiness to support reconstruction efforts in Georgia, including in areas of South Ossetia and Abkhazia, in addition to the EUR 6 million in emergency aid that have already been disbursed. The EU will therefore take the initiative of convening an international conference shortly to assist reconstruction in Georgia. Yesterday’s European Council requested the Council and the Commission to start preparations for this conference.
I should now like to present to you the main thrust of the 2009 draft budget established by the Council."@en1
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