Commission explores ways of defending EU funding

Commission expected to highlight the added-value that EU spending brings

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European Commissioners are holding intensive discussions this week on the EU’s financial framework for the post-2013 period. A two-day seminar, which started yesterday evening (3 May) and continues today, is focusing on preparations for the multiannual financial framework. The Commission plans to publish its proposals on 29 June. 

One of the items on the agenda is an exploration of how the financial framework can be adapted to highlight the added-value that EU spending brings. The negotiations over the EU’s next financial framework will take place as national governments are carrying out harsh cuts in public spending in order to reduce large public deficits.

‘Leveraging budget’

Net contributors to the EU budget – notably the UK, Sweden, the Netherlands and Finland – are expected to argue against increasing the EU’s spending for the next period. The Commission wants to defend EU funding by arguing that spending at EU level brings greater added-value than expenditure by national governments. One official said the emphasis was on a “leveraging budget” which would provide funds to trigger other sources of funding – such as project bonds to finance large infrastructure schemes.

Modernising funding

Discussion on the overall size of the financial framework is not planned at this stage, but Commissioners will discuss how to “modernise” it by shifting spending towards policies seen as boosting growth, competitiveness and job creation, such as research, innovation and energy and transport infrastructure. The Commission wants to link EU spending closely to the policy goals of Europe 2020, with its emphasis on innovation, education and training and decarbonisation of the economy. The duration of the next framework is also on the table: José Manuel Barroso, the European Commission president, has proposed extending it beyond the customary seven years to ten years, with a review after five years.

The seminar is taking place at the Bibliothèque Solvay in Parc Léopold. The Commission wanted to hold the meeting away from its headquarters at the Berlaymont building on Schuman roundabout, so that commissioners would not be distracted by other issues. In the event, it took them closer to the dairy farmers massed in Place Luxembourg.

Authors:
Simon Taylor 

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